HR Outsourcing Continues to Boom, Survey Reveals

Most large companies farm out at least one human resources function and are looking to expand into new areas, Hewitt says

Plans to Expand

Challenges Remain

Making the Transition

One-quarter Go Back In-house

  • More than three-quarters (77 percent) of companies surveyed said that the economy did not impact their HR outsourcing decisions.

  • The most common service-level agreements include transaction accuracy (75 percent), data delivery (66 percent), system availability (62 percent), issue resolution (59 percent) and employee/participant satisfaction (45 percent).

  • Nearly half (46 percent) of companies used a sourcing advisor for HR outsourcing decisions, while 48 percent plan to use one in the future.

  • Six in 10 survey participants do not have a companywide outsourcing strategy.

  • Only 9 percent of organizations measure vendor performance with Six Sigma techniques.

Additional Articles of Interest

For more information on procurement business process outsourcing (BPO), see the following articles: