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Dec 01, 2009

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Simply Lowell is simply marvelous, as always. One other point worth mentioning is that, with much better software and much more extensive self-service, the volume of unautomated work and call center requirements really does gone down dramatically, regardless of whether it's done in-house or via BPO. Perhaps the future of HRO is great SaaS with a dab of offshored back office left-overs and call center support. For a song, "wouldn't that be loverly, loverly, loverly, loverly..."

All:

Folks in government need to understand that sharing services almost always increases costs . . . it is a paradox. The uninformed fall into this trap sharing front and back offices and IT believing that money is saved, it is not. Without an understanding of the nature of demand we lock in waste. The biggest lever for improvement is the design and management of work.

Please read:
http://blog.newsystemsthinking.com/blog/shared-services-strategy/0/0/dos-and-donts-of-a-shared-services-strategy

Regards, Tripp Babbitt
www.newsystemsthinking.com
www.thesystemsthinkingreview.com (Government)

I really wonder about the future of HRO. Is it HRO or SaaS?

Lowell's cluster of HRIT sound like ITO, but for a specific category of customers. It is a great opportunity for a company like Oracle or smaller niche vendors who can provide SaaS and, to a lesser degree, call center services. A performance management/development niche/cluster also sounds like SaaS, with a little data entry/workflow service.

Both are software plays, with some small services.

However, it's a great example of how a business process can be somewhat standardized across different companies. Like AP, payroll, and, possibly, indirect procurement outsourcing could be standardized. And its a great example of solutions that mix services and software, something that many other areas of BPO haven't come to grips with. Makes FAO could look like this in the future, if customers could standardize as much as HR does?

Looking forward to part 2.

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