As the market
for HR outsourcing services grows, a parallel market for
BPO consultants is rapidly developing. Once dominated by
specialty firms with roots in information technology, the
outsourcing consulting market is now home to niche firms
and large management consultancies branching into the BPO
space. It is important to distinguish between such firms
as they bring very different attributes to the table.
As the large-scale,
multi-tier outsourcing providers consolidate their hold
on the HR market, specialized vertical providers are likely
to emerge while others will drop down to the “mid-market”.
It is important
for both the providers and HR
outsourcing consultants to increasingly consider factors
other than cost reductions in their value proposition. Everyone
must begin to think about the benefits of HR outsourcing
beyond the initial “quick hits” all have come
to expect.
At Trowbridge
Group, we believe that more sophisticated buyers are
increasingly interested in the qualitative aspects of HR
process transformation. More and more, CEOs and their executive
teams are looking for cost-effective ways to have winning
HR support, and our consultants assist them in determining
whether HR outsourcing is the right solution.
When the business
objectives of a company are not taken into account, an HR
outsourcing relationship often fails to produce the expected
benefits. For example, many companies choose comprehensive
HR outsourcing when, in fact, either outsourcing only a
portion of the HR function or making simple internal process
changes would better suit the company’s unique situation.
The announcement
of the signing of large outsourcing contracts generates
nice press and news stories; but so do failed contracts,
unrealized benefits and unhappy customers.
