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Apr 24, 2008

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Excellent point Phil. As you and I recall from the "early days" of HRO, one of the most compelling value propositions was that HR had exhausted all internal considerations for optimization and standardization, and thus the only logical next step was to benefit from the economies of scale that multi-employer environments (i.e., HRO providers) would offer. I agree the the leap from decentralized, highly fragmented, non-standardized processes to HRO is perhaps too broad a jump than this more progressive model.

Mark,

It's interesting that those HRO buyers, like Avaya, that already had HR shared services in place have had greater success in moving to a full HRO solution than those firms with de-centralized inhouse models. Clearly, moving from a shared services to HRO environment is far less painful for many firms, as they already have some common processes and standards implemented. HRO deployments, in many cases, are simply amplifying the complex change companies with limited standardization (and fragmented technology platforms) need to go through to reach a less costly and more efficient HR deployment environment. And guess what? The provider ends up taking the fall for the ensuing complexity. Too many buyers today are unwilling to invest in HR standards, and HRO is one way to achieve them with the investment borne by arbitrage and self-service technology platforms,

Phil

Great post Phil and I second the kudos to Avaya and Convergys. This is a much-needed shot in the arm for the HRO market.

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