Monday, April 6, 2009

News You Can Use: Is outsourcing out?

The economy has everyone doing more with less, and as far as HR/benefit pros are concerned, they're doing it in-house.

The HR/benefits outsourcing industry has skidded to a near halt, as Helen Neale, an HR outsourcing research manager at NelsonHall, a business process outsourcing market research firm tells EBN this month: "Organizations are actually pulling back from outsourcing initiatives because they've got other things that they need to be worrying about ... The kinds of deals that we're seeing are much smaller in size. Organizations do not want to deal with the amount of investment both in time and money that those huge deals require."

Hear more from Neale on outsourcing trends in a "Five Minutes With ..." podcast. Click here to download the audio.


Anonymous said...

This article is bad. It doesn't tell you anything and I have had to click through twice to find out it had no content and was led to click again to listen to a podcast. Thanks but no thanks!

Phil Westberry said...

I agree with Helen’s assessment on health & welfare outsourcing deals for first timers, it will be more difficult to justify outsourcing. However we are seeing an increase in the number of companies who have already outsourced going back to market to see if they can improve service levels (or maintaining them) while decreasing the cost of administration. Its more about share shift than deal growth, but the deals are out there.

Mike Hampton said...

We are seeing more activity to recompete currently outsourced deals and less initiative to outsource for the first time. I'd also say that, surprisingly, some larger organizations that outsourced functions years ago are revisiting the business case and evaluating insourcing those functions.

Pam Peters said...

I am not seeing a decrease or stoppage in outsourcing. I am seeing many clients revisiting the scope of services to determine if the scope should be expanded, if more focus should be given to further self-service functionality and how further productivity gains can be achieved. In some cases clients are starting to consider if any "high-touch" services can be brought into a more harmonized approach with TBO and HRO industry standard practices for delivery of services.