Companies choose HR outsourcing specialists on the strength of their computer systems more than on their ability to comply with regulations or use foreign resources, according to research.
Results released by advisory firm EquaTerra at the HRO World Europe conference in Brussels this week showed that IT was a crucial factor for businesses looking to outsource HR.
The survey of executives across 126 global companies showed quality of IT applications and systems scored an average of 3.36 out of 5 for importance.
Ability to meet regulatory requirements scored just 2.41, and use of offshore/remote resources a paltry 1.44.
Cultural fit between the company and HR provider scored 3.30, and ability to meet cost reduction goals scored 3.
Revealing the results, Synco Jonkeren, director of human capital at software provider SAP, said: “Very often when it comes to HR outsourcing, the long-term view is missing. Companies should consider IT as a factor straight away as it affects costs greatly in the long run.”
Survey respondents said IT influenced the success of HR outsourcing agreements by allowing adaptability, ease of use, success measurement, security and information provision, among other things.