HR Outsourcing Trends and Insights 2009

At a time when the majority of companies are under increasing pressure to reduce costs due to the weakened economy, HR departments expect to maintain their current strategies toward outsourcing HR services, according to Hewitt’s HR Outsourcing Trends and Insights 2009 survey.

Hewitt recently surveyed 104 companies on how they are using outsourcing to improve the delivery of their benefit and HR programs and also how their strategies might be affected by the current economic environment.

From the survey results, it’s clear that outsourcing does play an integral role in HR’s ability to deliver programs to employees. Overall, 82 percent of companies that have measured their outsourcing programs said they realized the benefits they had hoped to gain by outsourcing.

There are a number of reasons why companies choose to outsource HR services, including:

Reducing costs: Sixty-five percent of organizations that indicate cost savings is a primary outsourcing objective reported they achieved their expected cost-reduction targets through their outsourcing programs.

Gaining access to outside expertise: In addition to needing specific domain expertise, companies also want to be relieved of the burden of making large investments in technology to maintain in-house systems and dedicating resources to meet challenging regulatory guidelines.

Improving service quality: Considered the most common measure of success for outsourcing, 81 percent of respondents indicated that they met or exceeded their service quality targets.

Realigning/focusing on strategic HR priorities: Outsourcing helps remove the day-to-day administrivia of managing HR programs so HR can focus on supporting on their most important business challenges.

by Hewitt Associates

Share this

Latest Insights

Recent posts from our blog

How to plan for seasonal variances in your cash flow

Have you noticed unexpected seasonal variances in your company’s cash flow? If your business is seasonally-based (a lawn care or snow removal company, for example), it’s normal for your cash flow to vary depending on the time of year. Unfortunately, many companies who shouldn’t be affected by the seasons still experience peaks and valleys in […]

Organizational growth and restructuring: Is your business ready to take the next steps?

Are you planning to take your business to the next level? Before you start growing your company, you need to ensure that your organizational structure is prepped for this major shift. Don’t just jump in head first – make sure you follow our key prep tips to keep your growth sustainable and successful.   3 […]

Do you have a file you need to send to us? Would you like to make a payement?