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Jun 02, 2007


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here's an interesting video interview with the head of ATT HR talking about HR outsourcing:


All...In response to several memos on the topic of "tough change"... My view is that HRO has really changed in the last couple of years. After 9/11, CEOs wanted quick savings to hit the bottom line, and inexperienced HRO providers were willing to grant them front-loaded contracts to enable that do happen. Nowadays, you'd be hard-pressed to find an HRO customer who only did this to save money (in fact, recent research shows most of the recent deals barely effected any cost savings after transformation costs were taken into account). All in all, we're really talking about widespread HR transformation underpinned by new sourcing models - and (hopefully) better technology as a result. The long-term effect of this is to make HR a more important and strategic function in the organization - let's just hope today's providers can bring the three key elements together to make this happen: the people, the processes and the technology.

Phil, thanks for this excellent analysis. This deal is certainly ground-breaking considering its size and complexity. The signs are the HRO business is beginning to find its feet after a difficult couple of years - do you think we'll see more deals like this over the next few months?


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