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Apr 17, 2008

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Phil,

Interesting. Firms are much more used to outsourcing than a few years' ago. The more they find success with IT, F&A and other areas, the more motivated they will be to move HR out to third-parties. It's a logical evolution.

Phil,

I really enjoyed reading this! Reminds me of the early ITO deals in the '90s where firms moved out too much too quickly with a single provider. Many pulled back some of the processes which didn't work too well, worked out how to source the right processes and learn how to manage their provider relationships effectively. Like HR, we had resistance and negativity from IT as firms got used to working in outsourced environments. Despite some pull-backs, most ITO adopters have diversified their process mix, work with 2 or more providers in some cases, and would never go back to an inhouse model. I don't see anything radically different in HRO,

Stephen

Phil,

I really enjoyed this great write-up of the show and fully concur with your insights regarding the direction HRO is taking. While the industry has had its share of difficulties, we're really coming out on the other side now, with a host of providers offering great service solutions across the HR spectrum. And yes, the bottoms-up approach is definitely the way to go with these solutions. Perhaps the HR weanies will now stop sniping at the HRO industry and start getting to grips with the modern world, and concepts such as globalization and outsourcing. Too many people still don't understand the concept of the HRO delivery model, but persist in trying to undermine it...

John

Phil -
I've got two posts on the HR Week events. One's at: http://softwaresafari.typepad.com/software_safari_premium_b/2008/04/the-economy-fro.html and the other will follow shortly. In brief, I saw some definite indicators re: the US economy. HR vendors can be a really good indicator of the job market.

Secondly, I noticed a marked increase in RPO discussions where Talent Management was hot at the HR Tech show last fall. There will be more in my second post.

Your points are fair and descriptive of the event. Good to see you there Phil.

Phil, thanks for a first-rate and very accurate job of summarizing the state of the industry. From my own scheduled meetings with providers and platform vendors, with sourcing advisors and analysts, not to mention all the hallway conversations, I too was impressed with the seriousness of purpose and much clearer understanding by the providers of how they will make very individual approaches to HRM BPO work and work profitably. We've all paid a high price for the Barnum & Bailey tone of the early years of this industry; now let's take some credit for the learning we've done and the refined approaches on which we're working very hard. I was personally delighted to hear everyone say that the platform is a major key to durable success.

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