HR Business Process outsourcing is gaining momentum and experts believe that HR processes outsourcing will be a major decision making challenge for organizations. By outsourcing HR processes the organization make themselves vulnerable to outside influences, and so the is need to adopt a very flexible and dynamic approach towards the process. Failure to adopt a strategic and well calibrated approach may cause great loss to the organizations reputations and well as resources.
IBM Consultancy services has released a research paper on how organizations must embrace themselves for the challenges of HR process outsourcing .It gives a comprehensive guideline for adopting what they call Human Resource Business Transformation Outsourcing HR BTO. The report outlines the risks associated with outsourcing and raises the following issues.
Leadership Capabilities
• Have you identified individuals who have demonstrated the key leadership characteristics needed to support an ongoing outsourcing relationship?
• If one individual does not have all of these skills, are there other members of the ongoing outsourcing leadership team with complementary skill sets?
• To what extent have you identified potential individuals in other areas of the organization whose skill sets could benefit the overall outsourcing relationship?
Transitional Management
• Are adequate resources available to develop plans for building the new environment?
IBM Consultancy services has released a research paper on how organizations must embrace themselves for the challenges of HR process outsourcing .It gives a comprehensive guideline for adopting what they call Human Resource Business Transformation Outsourcing HR BTO. The report outlines the risks associated with outsourcing and raises the following issues.
Leadership Capabilities
• Have you identified individuals who have demonstrated the key leadership characteristics needed to support an ongoing outsourcing relationship?
• If one individual does not have all of these skills, are there other members of the ongoing outsourcing leadership team with complementary skill sets?
• To what extent have you identified potential individuals in other areas of the organization whose skill sets could benefit the overall outsourcing relationship?
Transitional Management
• Are adequate resources available to develop plans for building the new environment?
- Employee transition and redeployment management
- Delivery operations
- Workplace and infrastructure management
• What level of emphasis has been placed on developing a knowledge transfer strategy and are the appropriate resources in place?
• Has a structure been established to oversee the larger HR transformation effort that incorporates both client- and vendor-led projects?
• How comprehensive is the change management strategy for this transition? And has the organization committed sufficient resources to execute it?
Governance and Relationship Management
• Has the organization identified the key roles and responsibilities for governance at all three levels – strategic, program and operational?
• How collaboratively has the client worked with the vendor to assign clear governance roles and expectations?
• What mechanisms have been put in place to encourage the development of trust among the governance teams of the outsourcing arrangement?
Measurement and reporting
• What process is the organization using to develop service level agreements and how are they reported to the various governing boards?
• How is the organization validating that the measurements will be useful in making decisions throughout the lifetime of the arrangement?
• How is the organization planning to collect the appropriate operating measures or workforce analytics that will allow it to make decisions about its workforce?
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