HR outsourcing is here to stay
Despite the backlash against outsourcing, most North American and European
companies are willing to continue to outsourcing human resources
functions.
A recent survey of 120 companies in North America and Europe, with annual
revenues of at least 1 billion dollars, showed that majority of those who
currently outsource HR are willing to so again.
About 90 of companies surveyed are currently outsourcing one or two HR
functions.
More than 70 percent said they will extend or renegotiate contracts with
their current outsourcing providers while the rest said that they will put
their existing outsourced services out for a new bid.
None of them said they plan to bring back outsourced functions back and do
them in-house - an indication of outsourcing's high approval rating as
more than 90 percent said their outsourcing objectives in the beginning
have been satisfied.
The study also found that more than 77 per cent of companies do not plan
to consolidate their HR services under one outsourcing provider in the
near term, although nearly 23 per cent of respondent companies have
already done or are planning to do so within the next three years.
Nowhere has the anti-outsourcing backlash been more pronounced than in the
US. Yet the survey showed that HR outsourcing is most accepted by American
companies.
More than 80 percent of executives at US companies surveyed said they
currently outsource major HR functions compared with just above half of
those from Europe.
The survey noted that European companies may be more wary about
outsourcing HR functions due to differences in legislative requirements
with countries where service providers are located.
