HR Outsourcing. Trends HR. Talent. Attract and Retain

1. 1
Excalibre Inc-where you discover your
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2. Landscape in 2012
$40 billion in contracts will come up for renewal from 2010-2012
How buyers go about renewals is about to change
.
Buyers are becoming much more aggressive in going out and getting a look at what’s
going on in the landscape
Automatic sole-source renewal without a market check is going the way of the dodo
bird because organizations want more visibility to the bottom line. They want to know
the value of the supplier’s contribution.
Past, renewals were typically sole source. Buyers now are hiring more third-party
advisors to help them out with their renewals. Buyers are no longer willing to assume
their suppliers are providing value.
Buyers want to know if they are getting the right value for their money .
Now the question becomes: ‘Are we with a partner that’s investing and innovative?’
Because today it’s not just about cost effectiveness.”
Buyers want to ensure, will their suppliers, be able to serve them as they move
forward.” 2

3. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
3
Shifting adoption patterns: taking a more focused approach
With buyers more critically evaluating the benefits they stand to achieve from HR
outsourcing, more are considering phased approaches that focus on one defined area
at a time.
These areas may be along individual process areas such as multi-country payroll,
benefits, or recruitment or along categories of HR processes, transactional versus
talent management.
Several factors are driving this tighter focus- the desire to match up-front investment
with pay-back benefits, the need to feel confident in supplier capabilities, and the
realities of a shifting supplier landscape.
In near future, it’s conceivable that some clients will have to balance a mix of suppliers
until more suppliers are able to demonstrate a broader set of compelling capabilities.

4. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
4
The importance of global capabilities
Buyers facing renewal are also now asking whether they want their work split across
multiple outsourcers” or instead “want to consolidate it all together within a
partnership that enables standardization across multiple locations, processes, and
clients — one that has a flexible model that’s global in nature.”
Buyers with operations in 50 countries, for example, will want to select a supplier with
proven capabilities in all those regions. It is extremely important to understand the
local nuances.
Multinational companies are now asking for global benefits administration solutions.
Hence need of developing technology such that these companies can tackle the big
unknown chunk of spending they’re not aware of- hence assist them understand their
overall global spend.”

5. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
5
Process Convergence
Process convergence is another trend. Past, HR organizations viewed employee
retirement and health/welfare selection decisions as separate transactions.
There weren’t a lot of connect points, while presently progressive HR managers are
asking how they can make health and welfare decisions converge.
Both buyers and suppliers are trying to figure out how this will impact HR decisions
going forward.

6. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
6
Changes in benefits administration
Fourth trend is the integration of natural adjacencies of benefits administration.
They are things like wellness, voluntary benefits, absence management, and on- and
off-boarding. All have advantages for HR buyers.
For example, a more efficient off-boarding process can ensure an organization doesn’t
pay people longer than it should. And enterprises can minimize their healthcare costs
with a wellness program to change behavior.
Buyers want to extend the definition of HR outsourcing to include these things. In this
economy, employers will not be able to give employees as many benefits as they
historically have offered.
Finding ways to help employees derive benefits will absolutely be part of the HRO
requirement.
These types of buyer challenges will force providers to focus on innovation and
investment to expand the notion of benefits administration to the natural adjacencies.

7. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
7
The new preference for platforms
Early HRO buyers outsourced bits and pieces of the process, now, buyers are looking
for the complete end-to-end solution where the supplier can provide the process
services as well as the platform.
It’s not going to be good enough just to be an administrator and a manager of
transactions.
Buyers want to outsource the complete HRO services package, which includes talent
management, recruitment, learning, and development as long as the supplier has
developed the core HR services like payroll, time and attendance, and workflow
administration.
In the past, people outsourced the process or the platform. Now they want to
outsource them together and have the supplier charge them on a per-employee per-
year basis.

8. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
8
The new preference for platforms
This convergence will force providers to be clearer and more explicit about their
investment strategies and how they translate innovation into real capabilities that
help buyers solve problems.
One thing is sure: Providers can no longer milk their 15-year-old platforms. Instead,
they will have to constantly reinvent their offer because that’s what buyers will
demand
This is both a dramatic change and challenge; suppliers not willing to invest will lose
market share because there are too many suppliers that will invest.
Economic modeling, corporate governance, strategic marketing — all will become part
of the new HR professionals’ tool kit.
HR will become less about administration and compliance and more about executing
on strategy and capability.
Hopefully these changes will help corporations become more profitable and employees
become healthier, wealthier, and more productive.

9. Excalibre Inc-where you discover your
inherent potential. Cell 98188 12102
9
Lessons from the Outsourcing Journal
Buyers will aggressively research their options when it’s time to renew their
outsourcing agreements to ensure their suppliers are providing the value and services
they need.
Global HR benefits deals will become a reality as suppliers develop the technology to
provide a centralized look
HR processes will converge and no longer be separate events.
The definition of benefits will expand to include adjacencies like wellness and on-
boarding.
HR buyers want both process and technology together in a seamless, end-to-end
platform. This trend will force suppliers to invest in their technology so they can
constantly update their offers

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