Magazine article Workforce Management

Excelleratehro Looks to Simplify Far-Flung Vendor Relationships

Magazine article Workforce Management

Excelleratehro Looks to Simplify Far-Flung Vendor Relationships

Article excerpt

HUMAN RESOURCE EXECUTIVES eager to outsource some of their own work to global enterprises should know upfront about two possible, conflicting outcomes: They will almost certainly realize cost savings, but they may be disappointed with the quality of service.

While 88 percent of respondents in a survey of large companies with HR outsourcing contracts reported short-term savings, and even more-92 percent-achieved longer-term savings, only 39 percent were satisfied with vendor services at the two-year mark.

"No outsourcer has yet figured out how to mint satisfaction," says a study of HRO effectiveness by Towers Perrin, a global professional services company. The vendor-client relationship is key in what the firm calls outsourcing's seismic culture change.

Steve Bohannon isn't surprised by the study's findings. He's CEO of ExcellerateHRO, jointly owned by Towers Perrin and EDS, a provider of technology services. "We saw a very large hole in the provider marketplace in vendor management," Bohannon says. "People think it's simple to take a contract and make sure people do what they say they're going to do. That's a skill, and that's part of the skill set we bring to the party."

ExcellerateHRO, based in Piano, Texas, exemplifies two emerging trends in outsourcing: It's a third party providing sophisticated services. "An extension of the workforce will increasingly occur through the use of third parties-business process outsourcers, IT outsourcers and other suppliers," says Julie Giera, vice president of Forrester Research.

In addition, the rapidly growing number of outsourced services-her firm predicts that 3.3 million jobs will move offshore by 2015-won't solely be low-end but will be highly intellectual, Giera says. "The role of HR is going to be crucial to ensure their organizations can mesh all of this talent seamlessly."

Outsourcing companies like ExcellerateHRO are designed to help HR deal with the complexity of managing multiple vendors with different time zones, languages, values and cultures. …

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