Blog: HR Periscope

In July I learnt that Buckinghamshire County Council was outsourcing its recruitment services in order to improve its efficiency. Following on from this, I went on to read an article which mentioned the promotion of outsourcing as a good thing. Finally, I was called by an agency setup which was setting up an event to promote Lean Government, requesting that I participate The agency explained to me that Central Government is currently pushing for Local Government outsourcing in order to safe costs. This led me to reflect on some of my experiences of outsourcing and its impact.

The key thing that comes to mind is that when services are outsourced, savings does not simply derive from the fact that an external provider is used. Savings tend to come from a combination of organisation restructuring, improved processes as well as the possible use of an external provider. To understand whether outsourcing is truly beneficially to an organisation it is therefore important to find out from the outsourced provider which areas the quoted savings will actually come from.

Specifically I believe it is important to be clear on:

· Both what you want and what you need from your outsourced service

· The minimum requirements for the area you are planning to outsource (this would normally be the level of service you currently have in place). Outsourcing should lead to improvements in the service you have in place and not take you backwards

· What the essential processes are in the area you are planning to outsource and how the processes work

· The fact that the systems to be used are compatible with other systems in place in your organisation. I would also be concerned that any technology to be used is not a step backwards

· The fact that the outsourced service provider understands your business and is not simply selling you a standardised model without modifications to suit your organisation

· Be clear on what data/processes you are willing and comfortable to hand over and what you would like to keep in-house

· Ensure that relevant employees will have the right level of access to your organisation information/systems if you outsource.

· Finally – be clear on where the savings are actually coming from

Simultaneously it’s important to ensure that the outsourcing service provider:

· Understands your organisation’s culture and the way in which it works

· Is flexible in their approach

· Have previous, relevant experience with a demonstrable track record – ideally, you would want to be able to contact a few current and possibly even past customers

· Is update with industry trends and legislation

· Has systems and processes that work effectively and are up to date

· Is able to demonstrate the areas that savings and efficiencies will come from

Susan Popoola
Conning Towers
HR Transformation & Talent Management
Leveraging the Power of People

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Labels: HR Strategy, HR Systems, HR Transformation, HRIS, Human Resources, Outsourcing

# posted by Susan Popoola @ 19:40