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    HR Outsourcing - No longer cool
    What is happening in the HRO world? After years of trying to make the model work, this is clearly no longer a hot or growing space. ExcellerateHRO (part of EDS/ HP) with the recent acquisition by HP, declared in July that it is exiting the business. Fidelity HRO, after years of telling us that [...]


    HR Outsourcing - No longer cool

    What is happening in the HRO world? After years of trying to make the model work, this is clearly no longer a hot or growing space.

    ExcellerateHRO (part of EDS/ HP) with the recent acquisition by HP, declared in July that it is exiting the business.

    Fidelity HRO, after years of telling us that they were the sleeping giant, declares defeat earlier this year.

    Convergys - no one ever hears about the human capital division anymore.

    Accenture, the hot vendor from last year, is clearly having issues trying to satisfy the needs of all their major clients that they won the last two years. They are losing key resources and seem relatively quiet this year.

    Hewitt is very focused on their traditional Benefits Outsourcing business while trying to fix many old contracts and figure out what the model actually is.

    Northgate Arinso is perhaps the sleeping giant of all. Now with their own proprietary technology in a deeper resource pool on a global basis, they are in a position to offer not only an integrated talent management and human capital management platform but also the services and global experiences to go with it.



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    comment 3 Comments
    • J.P. Winker
      10-14-2009
      J.P. Winker
      Not surprising, since distinguishing between activity and productivity isn't done well in the field. HR costs more than anyone expects so the bills are higher and the profits lower. We're finding clients interested in outsourcing components of their recruiting, especially in the global arena. But we are very careful with clients looking to outsource the entire effort. All too often, they are trying to control costs through outsourcing instead of addressing them directly.
    • Michael Brandt
      11-06-2009
      Michael Brandt
      I think there is a new model arising out of the outsourcing ashes and it is starting in the RPO space. Shared services seems to be the growing trend. Rather than these huge multi-million dollar HR outsourcing efforts, companies will outsource key areas of HR that do not require a full time resource. Outsourcing vendors will have staff that work part time for many customers rather than full time for any single cusotmer allowing them to keep their cost down.
    • Mark Bubner
      11-10-2009
      Mark Bubner
      Great Comment Michael.
      Additionally, I think with the growth of buyer centric sourcing applications like iFindConsultants.com, it is now much easier to scan the market and engage service providers on an ad hoc basis.
      This means you can easily and quickly engage quality vendors as and when you need them, without the normal hassle of sourcing.

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