Enabling Technology

It is unmistakable that the HR technology industry has been revolutionized. Cloud-based HR systems are now available from many of the largest vendors in the market. These systems integrate payroll, HRMS, talent management and analytics processing into a single cloud-based service. Many HR leaders are challenged with mobile tools and new social recruiting systems that are making many of the legacy HR systems obsolete.

Hewitt Associates to Provide HR Services to Omnicom Group Inc.

Firm Signs First HR BPO Client in Communications Industry


LINCOLNSHIRE, Ill. Hewitt Associates (NYSE: HEW), a global human resources services firm, announced today that it has been selected by Omnicom Group Inc

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Three Times the Charm

Part three in the series, If Your Only Tool Is A Hammer, Every Business Challenge Looks Like A Nail

by Naomi Lee Bloom

When looking for an outsourcing provider, some basic questions will inevitably arise addressing the fit between the outsourcing suggestion and your way of doing business. Questions will also arise regarding what potential providers can offer, and what you would need to warrant considering this approach and provider. Does the provider(s) for this outsourcing proposal have platform(s) and processes, as well as a business model, which make the same assumptions about workers as your company does? Ask yourself if they can properly handle the following scenarios for your company: 

*Field sales and service employees whose migratory work locations necessitate that their pay is taxable by more than one jurisdiction during a payroll period?
*Employees who are paid at different rates during the payroll period depending on what specific work they are doing at a particular time?
*Employees who telecommute and/or work exclusively from their homes, which then become work sites for various regulations?
*Employees who are paid on an hourly basis when they are called in to work, and are then paid at the rate thats relevant for the work they are doing, but who also receive a pay period stipend and some benefits in exchange for making themselves available?
*Disadvantaged employees, for whom a government agency subsidizes a portion of their wages and benefits and for whom accommodation is needed not only in HRM policies and practices but also in HRMDS techniques? 
*Non-employee members of the workforcesuch as PEO provided, dual employment workers, independent contractors, leased employees, and those consultants who never seem to leavefor whom we need to capture time and expense information as well as the details of what work was done in order to produce accurate headcount reports, forecast workloads, and determine the actual costs of getting work done via various staffing strategies?
*The complete worker life cyclefrom unknown hire through employment or contract work and whatever connections may remain once weve ended our employment or contract relationship?

Does the potential provider have the platform(s), processes, and business model that make the same assumptions about the organization of work as we do? Can they properly handle the following scenarios:
*Retail or other stand-alone operations (e.g., chain restaurants, branch banking, chain hotels/motels, or copy centers) that depend on many part-time employees to meet the flow of work at each location, with work locations that are near enough to one another to be within easy commute distance? The target workforce that would prefer to have full-time pay and benefits, even if it means taking two part-time positions, which could be at different work locations and even cross business units and/or income taxing jurisdictions? What to do if each such part-time position has its own performance evaluation, payroll cycle, work rules, and attendance standards?
*How work in teams is organized, which may have multiple reporting lines rather than strict hierarchical departments and divisions? If teams are led by an official manager or self-directed? Teams that are created for special projects versus teams that are ongoing and organized around customers, transactions types, sales regions, etc.? When there are team-related work schedules, work rules, incentive compensation plans, and work environment programs?
*When business is organized simultaneously by country/ geography, product line, customer/customer industry, and/or distribution channels? When employees and non-employee workers are organized with a primary position that has adjunct responsibilities or when they have a series of assignments within the broader context of a position? Is there a way to account for fully-loaded labor costs across the various dimensions of organization?
*When using ancillary, assigned work roles that dont affect how employees are paid or how labor costs are accounted for, but which do require access to particular HRMDS capabilities, e.g., floor safety coordinators who need access to health and safety information on specific individuals as well to the details of who is working where at a particular time?
*Is the cost of getting to the improved HRM process or set of integrated processes and related HRMDS components, justifiable in terms of improvements to business outcomes or is this a cost of doing business? Are there other or even better ways to achieve the same business outcomes?

If youve gotten this far with reasonable answers to the many questions that are relevant to your own outsourcing activities, its time to apply Naomis killer scenarios (see the July/August and December 2003 issues of HRO Today). Dont forget your toolbox.

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Largest Domino’s Pizza Franchisee Experiences Cross-Organizational Benefits With Ultimate Software’s UltiPro

WESTON, Fla., June 28 /PRNewswire-FirstCall/ — Ultimate Software (Nasdaq: ULTI – News), a leading provider of Web-based payroll and workforce management solutions, announced today that RPM Pizza, LLC, a 141-store Domino’s Pizza franchisee with approximately 3,500 employees, is leveraging UltiPro Workforce Management’s self-service capabilities, reporting tools, and industry-leading functionality for companywide organizational value.

An Ultimate Software customer since 1995, RPM Pizza has stores in four states

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ACS to Provide Electronic Benefits Transfer Services for New Jersey Department of Human Services

DALLAS, June 21, 2005 /PRNewswire-FirstCall via COMTEX/ — Affiliated Computer Services, Inc. (NYSE: ACS), a premier provider of business process and information technology outsourcing solutions, announced today that it has been selected by the New Jersey Department of Human Services to provide electronic benefits transfer (EBT) services for food stamp and cash assistance benefit programs.

The contract is for five years with two, one-year extensions. Valued at approximately $24 million, the contract provides EBT transaction processing, a call center, account management, Web-based transaction inquiry, online reporting, retailer management for merchants, and ATM access

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Time Warner Selects Pilat HR Solutions to Manage Talent

LEBANON, New Jersey (June 14, 2005) – – Pilat HR Solutions, a leading provider of talent management consulting and software, announced today the signing of an agreement with Time Warner Inc. (New York, NY), a leading global media and entertainment company, to provide them with HR PulseT, a web-based human resource system. This configurable software will provide Time Warner with an enterprise-wide succession planning solution.

“This agreement underscores the enterprise-wide capabilities that the HR PulseT software can address

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ADP Announces Availability of Global Outsourcing Solution in Canada

Industry leader expands GlobalView service to manage HR and payroll for large-scale domestic and multinational companies seeking a single outsourcing provider

TORONTO, June 13 /CNW/ – ADP Canada, part of the Employer Services International division, today announced the availability of ADP’s new worldwide outsourcing solution – GlobalView(SM). Currently available in Asia and Europe, ADP’s GlobalView offering is an end-to-end solution enabling consistent payroll and human resources administration of large-scale domestic and multinational companies – all from a single provider

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Outsourcing Software Solutions

Addressing the legal challenges and risks of outsourcing software solutions. How to reduce the prospect of disagreements and expensive litigation.

by Thomas C. Greble, John Gliedman


Outsourcing providers typically promise a software-based solution that is seamless from the customers point of view. But behind the seamless screen there is often an array of third-party software supporting the outsourcers services. A key to making sure that a so-called seamless solution does not come apart at the seams is making sure that the underlying software provider contracts are in sync with the customer-facing master outsourcing agreement.


Difficulties can arise in an outsourcing environment when the lines of responsibility for compliance with third-party software licensing requirements are not clearly drawn between the customer and the provider. In Maury v. Computer Sciences Corp., 2005 U.S. Dist. Lexis 4206, (D. Conn. Mar. 16, 2005), a provider employee claimed that he was discharged in retaliation for his efforts to stop the installation and use of unlicensed software at the customers work site. The court noted that incidents of unlicensed software use occurred in part because the outsourcing provider and the customer could not agree on who was responsible for purchasing the software that the employees needed to do their jobs.


Off-the-shelf software is software that can be taken off the Web or out of a box, installed, and used as part of a larger solution. Before entering into an outsourcing arrangement, the provider should consider whether it needs to have access to the customers software to add new users. If so, it will need to review the customers licenses to ensure that it has the proper rights. It is important that a customer knows what software license and maintenance provisions were put in place during the outsourcing relationship and will continue following termination of the relationship.


Perhaps the biggest issue facing an outsourcer and its customers is license management in a multiple-user setting. It is conceivable that an outsourcer could neglect to obtain the proper number of licenses, either to cut corners or out of ignorance of the licensing terms of the software. To protect itself in such situations, the customer should include a provision indemnifying itself if the outsourcer violates applicable lawsuch as the copyright lawsin connection with providing the services. The customer must verify license compliance as well because the vendor may not have sufficient assets to make indemnity meaningful or because litigation to enforce the indemnification clause may be too expensive or time consuming.


Suppose the outsourcer has an agreement with a software provider to customize the software. The agreement may lack definitive service levels that reflect the performance quality expectations of the customer. This discrepancy can create an issue for the master outsourcing agreement if not anticipated in advance. The need for coordination is also necessary to avoid potential problems with the software itself, and it is nave for the customer to simply leave this in the hands of the outsourcing company and its software vendor. For example, the software provider agreements ought to have strong virus protection and IP infringement indemnities so as to meet the customer concerns set forth in the agreement. Along these lines, the customer should require its outsourcer to bind its software providers to safeguard its confidential data with which it comes in contact.


What about open source software? If you think its not an issue since your company doesnt use it, think againmaybe you do and dont realize it. The use of open source software is increasingly an issue in corporate environments, as management begins to realize that employees have incorporated open source products into the environment, often without proper safeguards and controls, because theyre free, easy to install, and no purchasing review is required. If software-related functions are outsourced, the use of open source software (whether it is prohibited or allowed) should be considered in any situation in which the customer may access outside software, so that the company isnt faced with an open source software licensing issue down the road.


The centrality of software to all HRO transactions requires close coordination of the various moving parts that comprise an outsourcing arrangement. Whether you are an outsourcing provider or a customer, the lesson to be drawn from cases such as Maury is the importance of legal counselbeing on top of the issues of third-party software contracts from the outset of the transaction.  

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Answers to the “Why Aren’t We…?” Questions

Part two in the series on having all the right answers to those tricky outsourcing questions.

by Naomi Lee Bloom

As promised last month, here are more zingers for evaluating any unsolicited outsourcing proposals that come at you, not as a byproduct of strategic HRM and HRMDS (human resources management delivery systems) planning although they’re useful in that context as wellbut as a response to the “Why arent we moving aggressively to comprehensive HRM BPO?” question often asked by a returnee from the latest provider briefing or sales event cloaked in thought leadership. Here we go:


Who’s going to manage the financial aspects of this outsourcing proposal to ensure that we achieve the intended results? How? Do we have the people, processes, and technology to do this effectively? What would it take to put them in place? Has this been factored into the outsourcing idea or proposal?


Who’s going to manage the implementation, including systems integration, aspects of this outsourcing proposal to ensure that we achieve the intended results? How? Do we have the people, processes, and technology to do this effectively? What would it take to put those people, processes, and technology in place? Has this been considered in the outsourcing proposal?


Who’s going to manage the performance aspects of this outsourcing proposal to ensure that we achieve the intended results? How? Do we have the people, processes, and technology to do this effectively? What would it take to put those in place? Is this part of the business case for the outsourcing proposal?


Has our lawyer negotiated at least as many HRM outsourcing contracts as the outsourcing providers lawyer? Do we have the legal and vendor management horsepower needed to make this work for our organization? What is that aspect of the arrangement going to cost?


Where will our HR executive, CFO, CIO, or other executives be two years from now? Will they be as enthusiastic (or as unenthusiastic) about this proposal if they are going to be judged long-term on how well this strategy works for our organization?


Where will our outsourcing providers account executive, operations executive, or other executives be two years from now? Do they have as much at stake as we do professionally? Whats their track record for delivery? Whats their record for staying in place long enough to experience the reality of meeting their commitments?


What if the outsourcing provider our organization likes and selects is then acquired by an outsourcing provider our organization rejected because of their management style, ethics, customer service track record, technology, geographic coverage, etc.? How easily can our company get out of the outsourcing contract?


What if the outsourcing provider we like and selected decides to exit the business (for whatever reasons)? How easily can our organization find another provider, migrate to that provider, and absorb the costs and disruption of such a change?


Frankly, how can our organization escape from any comprehensive HRM BPO provider, among many other considerations, when a full self-service rollout is part of the proposal and any change in that rollout, e.g. to another providers self-service software, would be visible and disruptive to our entire workforce?


If we accept this outsourcing proposal, is there any going back once its implemented? If our company changes its mind in two or three years, whats involved in bringing this activity, function, process, or integrated processes, along with the relevant HRMDS components, back in-house? What would it take to move to another provider once we have implemented with the first one? Is our company going down an irreversible path? Do we care? As strongly as I support the use of HRM outsourcing from gaining access to expertise via the use of expert resources to using business applications packages rather than rolling our own to every flavor of HRM and IT process outsourcingthere really are some outsourcing proposals that should be drowned at birth. Hopefully, the questions in last months and this months columns can be used, judiciously, as the cement shoes for that purpose. Next months column provides the final questions to be considered when anyone makes specific outsourcing suggestions.   

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ADP Helps Hard Rock Hotel & Casino Cash In On Savings

ROSELAND, N.J.–(BUSINESS WIRE)–May 31, 2005–ADP NationalAccount Services, part of the Employer Services Division, a leadingprovider of outsourced payroll, benefits and HR services for largeemployers, today announced that Hard Rock Hotel & Casino in Las Vegashas begun implementation of its PayForce(TM) solution to streamlinepayroll processes and provide greater access to data throughout theenterprise. ADP PayForce is a flexible, paperless payroll solution,with an intuitive Web-based interface that results in greater processefficiencies and lower total cost of ownership per paycheck. Hard RockHotel & Casino is ADP’s 100th PayForce customer since the offering wasintroduced to national account clients in July 2003.

PayForce is designed for growing organizations requiring a robust,quickly-implemented payroll solution that provides built-in bestpractices in a Web-based environment. Additionally, ADP’s TotalPay,combined with iPaystatements, allow customers to deliver a totallypaperless payroll solution to their employees, which can eliminate thecosts of printing, lost checks, and check fraud and save employeesfrom having to wait in line to cash their pay checks.

Today, PayForce customers have an opportunity to leverage ADP’sSelf Service offering, which allows employees to access HR and payrollinformation anytime with only a Web browser and an Internetconnection. As a hosted solution, ADP maintains all the software andhardware, enabling customers to receive version enhancements withoutinfrastructure expenses or additional charges for upgrades.

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