Appeal of outsourcing HR grows

Outsourcing HR is not only gaining popularity, but will become a permanent
element in a typical corporate operation, according to results of a recent

More than three-quarters of executives at large North American and European
companies said their organisations currently outsource one or more major HR
functions and a great majority said they would do so again, according to the
survey released by the US-based research and networking organisation, the
Conference Board.

The Conference Board surveyed executives at more than 120 companies with
annual revenues of at least US$1bn. Three-quarters of respondents were from
North America, with the remainder from Europe.

Seventy-six per cent of respondents said their organisations currently
outsourced one or more major HR functions, and 80 per cent of those said they
would do so again.

Only 9 per cent of respondents said they were entirely against outsourcing
some or all of their major HR functions, compared with 23 per cent in last
year’s Conference Board survey.

David Dell, author of the study, said North America was the most likely
candidate for outsourcing.

"European companies are more likely to be confronted with challenges in
standardising HR processes across national borders due to differing in-country
legislative requirements," he said.

The HR programme most often fully outsourced is registered savings
programmes, with pensions/benefits, stock options administration, and health
benefits being the next most popular areas.

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