HR Offshoring – Lessons from Experience Bernard O’Driscoll The Workforce Conclave 15 th  February 2008
Session Outline <ul><li>Drivers  for HR Offshoring </li></ul><ul><li>Perceptions of  HRO Marketplace </li></ul><ul><li>Fin...
Business Drivers for Exploring HRO: <ul><li>HR Shared Services 5+ years old and “mature” </li></ul><ul><li>Many well-estab...
The HR Director’s Intent: <ul><li>Evolve beyond mature HR Shared Services model </li></ul><ul><li>Create a strategic partn...
Aim to create… <ul><li>Outstanding  HR Business Partnering  support </li></ul><ul><li>HR Policies  that maximise business ...
HR Offshoring Marketplace (circa 2005/6) <ul><li>Eastern Europe or India </li></ul><ul><li>‘ Total Outsource’ offer from m...
The Ideal Partner… <ul><li>What matters to business/HR decision makers… </li></ul><ul><ul><ul><li>Complementary culture? <...
The Partnership Outcomes Total reshaping of existing HR operations with circa 140 FTE offshore in new partnership <ul><li>...
Business Retained… <ul><li>HR Contact Centre </li></ul><ul><li>HR Consultancy (Recruitment, Performance Mgt, Change, etc.)...
Scope… <ul><li>HR Management Information </li></ul><ul><li>Staff Exit/Leaver Administration </li></ul><ul><li>Back Office ...
Lessons Learnt <ul><li>Seeing India is worth 1000 power point slides </li></ul><ul><li>HR Directors need help in framing w...
Thoughts on the future… <ul><li>HR offshoring is a natural evolution for mature HR shared services operations </li></ul><u...
HR Offshoring – Lessons from Experience Bernard O’Driscoll The Workforce Conclave 15 th  February 2008
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Creating Sustainable Change through Organizational Alignment and Managing an Increasingly Diverse Workforce,Bernard O’ Driscoll, Chartered Institute of Personnel & Development

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Creating Sustainable Change through Organizational Alignment and Managing an Increasingly Diverse Workforce,Bernard O’ Driscoll, Chartered Institute of Personnel & Development

  1. 1. HR Offshoring – Lessons from Experience Bernard O’Driscoll The Workforce Conclave 15 th February 2008
  2. 2. Session Outline <ul><li>Drivers for HR Offshoring </li></ul><ul><li>Perceptions of HRO Marketplace </li></ul><ul><li>Finding the Right Partner </li></ul><ul><li>Scope and Outcomes </li></ul><ul><li>Personal Lessons </li></ul><ul><li>HR and global sourcing… the future </li></ul>
  3. 3. Business Drivers for Exploring HRO: <ul><li>HR Shared Services 5+ years old and “mature” </li></ul><ul><li>Many well-established UK outsourced HR relationships: Healthcare, Payroll, Training, etc. </li></ul><ul><li>Strong HR record of cost reduction, service improvements, innovation and risk management </li></ul><ul><li>BPO maturing as a corporate option </li></ul><ul><li>… So, what about HR? </li></ul>
  4. 4. The HR Director’s Intent: <ul><li>Evolve beyond mature HR Shared Services model </li></ul><ul><li>Create a strategic partner for HR service delivery – with options for the future </li></ul><ul><li>Impact the business bottom line – both cost reduction and increased HR focus on strategic issues </li></ul><ul><li>Transform the retained Human Resources function </li></ul>
  5. 5. Aim to create… <ul><li>Outstanding HR Business Partnering support </li></ul><ul><li>HR Policies that maximise business capability </li></ul><ul><li>Best possible effectiveness and efficiency from HR Processes </li></ul>… Great HR
  6. 6. HR Offshoring Marketplace (circa 2005/6) <ul><li>Eastern Europe or India </li></ul><ul><li>‘ Total Outsource’ offer from main players </li></ul><ul><li>Limited evidence of dedicated UK-only HR Service provision working offshore </li></ul><ul><li>Suppliers understanding of HR Directors’ mindset and decision criteria not fully developed </li></ul>Committing to HR offshoring required strong convictions and trust in partnership with suppliers
  7. 7. The Ideal Partner… <ul><li>What matters to business/HR decision makers… </li></ul><ul><ul><ul><li>Complementary culture? </li></ul></ul></ul><ul><ul><ul><li>Good awareness of UK employment practices? </li></ul></ul></ul><ul><ul><ul><li>Strong track record in BPO/HRO? </li></ul></ul></ul><ul><ul><ul><li>Right pace and ambition for transformation? </li></ul></ul></ul><ul><ul><ul><li>A sensible next step, not a different direction? </li></ul></ul></ul>… depends on business and HR context
  8. 8. The Partnership Outcomes Total reshaping of existing HR operations with circa 140 FTE offshore in new partnership <ul><li>Manage the Service </li></ul><ul><li>Create the Vision </li></ul><ul><li>Set the Direction </li></ul><ul><li>Lead the Change </li></ul>Lloyds TSB <ul><li>Establish Operations </li></ul><ul><li>Build Offshore Service Capability </li></ul><ul><li>Develop further options </li></ul><ul><li>Deliver the Service </li></ul>Steria
  9. 9. Business Retained… <ul><li>HR Contact Centre </li></ul><ul><li>HR Consultancy (Recruitment, Performance Mgt, Change, etc.) </li></ul><ul><li>Legal Advice & Risk Management Services </li></ul><ul><li>HR Supplier & Commercial Management </li></ul><ul><li>UK-essential administration </li></ul>… HR ownership of engagement with employees
  10. 10. Scope… <ul><li>HR Management Information </li></ul><ul><li>Staff Exit/Leaver Administration </li></ul><ul><li>Back Office support for HR systems and Data Management </li></ul><ul><li>HR Technology Programme Management </li></ul><ul><li>Training & Administration Helpline </li></ul><ul><li>Outbound References </li></ul><ul><li>Recruitment back office </li></ul>… a combined UK/India HR partnership with in-house and off-shored operations
  11. 11. Lessons Learnt <ul><li>Seeing India is worth 1000 power point slides </li></ul><ul><li>HR Directors need help in framing what they want to achieve – retained HR function, criteria for partner selection, performance measures, etc. </li></ul><ul><li>Decision making to commit to HR offshoring is complex </li></ul><ul><li>Building and sustaining confidence in the partnership is key to successful implementation </li></ul><ul><li>HR Offshoring can add strategic value to HR and the business </li></ul>
  12. 12. Thoughts on the future… <ul><li>HR offshoring is a natural evolution for mature HR shared services operations </li></ul><ul><li>There is considerable potential in tailoring BPO capability to HR-specific offerings – either standalone or as extensions to existing relationships </li></ul><ul><li>HR Offshoring can add strategic value to a business and more companies will begin to examine the case for change – this goes beyond transactional work </li></ul><ul><li>Suppliers need to ensure they can engage with HR leaders in framing a compelling case for change – this will be a key differentiator in the HRO marketplace </li></ul>
  13. 13. HR Offshoring – Lessons from Experience Bernard O’Driscoll The Workforce Conclave 15 th February 2008

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