Thursday, October 06, 2005

HR:Business Transformation Outsourcing

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?

- 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?
To read the complete Report Click Here

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