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.

SAP Sets New Standards for Business Process Outsourcing

Unveils BPO Services Powered bySAP; Certified Outsourcing and Collaboration with Leading BPOProviders Enables Companies to Drive Growth and Innovation

NEWYORK, N.Y. – April 12, 2005 – Further delivering on its road map forbusiness process outsourcing (BPO), SAP AG (NYSE: SAP) today announceda new program that helps businesses execute a successful outsourcingstrategy. Under the BPO Services Powered by SAP program, SAP endorsesand actively supports the set up and ongoing operations of BPO deliveryplatforms in close collaboration with leading BPO providers, includingACS, ADP Inc., EDS and LogicaCMG, as initial program partners for theHuman Resources Outsourcing Segment. These platforms, which are basedupon the latest versions of SAPs best-in-class solutions and deployedin a cost-effective and standard way, enable companies to benefit fromprocess automation and innovation when outsourcing human resources orother administrative processes. The announcement was made inconjunction with HRO World, a leading human resources and outsourcingshow being held in New York, N.Y., April 12-14.

Companiesaround the globe are increasingly looking to outsource administrativebusiness functions, allowing them to focus more on their corecompetencies and to free up valuable resources to drive growth andinnovation. Compared to standard business process outsourcing, BPOServices Powered by SAP includes a unique combination of SAPslong-term viability as a partner and experience in providing innovativebusiness solutions with complementary services from leading BPOproviders. Together, these components provide exceptionally low risk,cut transition and operations costs and improve standardization ofquality business processes.

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CSC Wins Contract Worth Approximately $230 Million to Support NASAs Shared Services Center at Stennis Space Center

EL SEGUNDO, Calif., May 11 /PRNewswire-FirstCall/ — Computer Sciences Corporation announced today that it has won a contract to provide support servicesto the new National Aeronautics and Space Administration (NASA) SharedServices Center (NSSC) at Stennis Space Center, Miss. CSC estimates thevalue of the award, which has a five-year base period and five one-yearoptions, to be approximately $230 million if all options are exercised.

Underthe terms of the agreement, CSC will provide administrative, financial,human resources and procurement support services to approximately20,000 NASA employees, applicants, contractors and university partners.

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Duke Energy Inks HRO Contract with Hewitt

CHARLOTTE, N.C. — Duke Energy today announced that Hewitt Associates, a global human resources services firm, has been selected to provide comprehensive HR back-office administrative services to the companys U

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If Your Only Tool Is a Hammer, Every Challenge Looks Like a Nail

Avoiding those uncomfortable moments when everyone is, miraculously, an outsourcing guru.

by Naomi Lee Bloom

My previous three columns helped ensure that youre prepared to answer any question about the current state of your organizations HRM outsourcing. Now its time to ask your own questions when colleagues throw out the Why dont we? questions. When faced with an expression of outsourcing interest or opportunities for further outsourcing, one should always ask (and be prepared to answer) the following:


* Is this outsourcing proposal compatible with our strategic business and HRM plans (to improve our competencies in our strategic HRM processes), or is it intended to address temporary tactical problems (such as a reluctance to invest in the next HRMS upgrade)?

* Are the outsourcers employees (or our employees transferred to the outsourcer) going to give us better service than our own workforce? Why? How? In the face of tight deadlines and downward pricing pressures? If the provider is hiring our staff, how will we gain an increase in their proficiency? If the provider isnt hiring our staff, what will we do with them?

* How will we develop excellent HRM and HRMDS strategists, HR generalists and specialists, and HRM software vendor and outsourcing provider managers if we accept this outsourcing proposal?

* How will we control costs with sufficient granularity if the provider bundles everything into one fee? What pricing structure(s) would work best? Is that what is proposed?

* What are the implications of this outsourcing proposal if we merge with another organization of our size? What if we divest a major part of our organization?

* What are the implications of this outsourcing proposal if another organization wants to buy us? Are there any unattractive contract buyout provisions? Any unattractive migration considerations if we were to move to the acquirers capabilities?

* What are the implications of this outsourcing proposal if we sell off peripheral businesses and focus on our core business(es)? How are contract fees adjusted when business activity slows and/or we downsize? What about when we grow and/or business activity quickens?

* How do we know that these financial projections are accurate? What assumptions (simplifying, optimistic, or plain misleading) have been used to prepare these numbers?

* Since change is a sure thing, how can we be sure that the proposed outsourcing contract will protect us as much as it protects the outsourcing provider when change happens? Against what change scenarios should we test this proposal? What changes will our employees/managers notice? Will these changes be received as positive? Whats the upside and downside on their reactions on their productivity and on organizational outcomes?

*Will our best HR and HRMDS staff resign the minute they sense the intent of this outsourcing proposal? Whats the upside and downside if they do?

* Why is this being discussed/proposed now? Whats the impetus for this outsourcing proposal? Is the timing convenient with respect to our HRMDS planning cycle, budget cycle, organizational change cycle, etc.?

* What is the fit between whats being proposed in terms of process design, data structures, business rules, etc., and what we do today or wish to do? What scenarios should we use to test all the important topics?

* Is the impetus for this outsourcing proposal contained in an investment plan to bring our current HRMDS to meet the standard needed to sustain our business? If we took a careful look at what our HRMDS needs to support our business outcomes, would we be shocked by the level of investment?

* Are there any unspoken motivations behind this outsourcing proposal, e.g., is it a substitute for examining what may have been poor decisions already made in our choice of ERP vendors, systems integrators, benefits consultants, etc.? Are there internal politics at work? Is it possible that the proposer is hoping to deflect attention from their own part of the organization by stirring up some dust in HR? Is it possible that the outsourcing provider putting forth this proposal has something other than our business needs and best outcomes in mind?


If you think these are tough questions, the best are yet to come! When I finish this series, it will be time to propose specific scenarios, affectionately known as Naomis Killer Scenarios, to help ferret out reliable answers to those questions that bear on provider capabilities.  

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NY HR Week 2005 Trumps Expectations – Up 32% to 3710 Registered Attendees

HR Executives In Record Numbers Attend HR Conference —

Top Issues Include Outsourcing, Diversity, Benefits & Technology

Milford, CT,April 20, 2005 NY HR Weeks conference directors today released recordattendee totals for the 2005 NY HR Week held April 12-14, 2005 at the New YorkHilton, making it the nations second largest HR event. Registered attendeestotaled 3,710, with conference attendees numbering 706.  The totals represented a 32% increase overthe 2004 totals, and included a record 106 media attendees.

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PwC: Almost All Fast-Growth Companies Outsourcing HR Functions

PricewaterhouseCoopers Trendsetter Barometer interviewed CEOs of 360 privately held product and service companies identified in the media as being among the fastest growing U

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Hewitt Associates to Provide HR BPO Services to PepsiCo

Firm Continues Growth of HR BPO Business, Signing Eighth Deal Since Close of Hewitt and Exult Merger

LINCOLNSHIRE, Ill. — Hewitt Associates (NYSE: HEW), a global human resources services firm, announced today that it will provide comprehensive HR business process outsourcing (BPO) services to PepsiCo (NYSE: PEP), a world leader in convenient foods and beverages. Financial terms of the deal were not disclosed.

Under a ten-year agreement, Hewitt will provide HR BPO services in the U

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To Outsource or not to Outsource, These Are the Final Questions

Part three of our three-part series on deciding whether or not to outsource your HRMDS.

by Naomi Lee Bloom

As promised, this is the third and final column that poses the questions related to HRM outsourcing activities for which HR leaders need ready answers. Theres a clear pattern in these questions, which began in the January/February issue of the magazine, with ensuring that HRM outsourcing decisions are grounded in our business and HRM strategy.


Last month, we looked at our current levels of HRM outsourcing activities, a topic well continue this month. Well also focus on the things that could go bump in the night if you fail to pay sufficient attention to them. Here are the final questions you should be asking yourself when making a decision to outsource your HRM delivery system (HRMDS):


Would more or less outsourcing affect costs in a positive way without adversely affecting the quality, timeliness, other important measures of process outcomes, or required business outcomes?


What are our decision criteria for when, how, to whom, and with what service level agreements (SLAs) we will outsource each type of HRM process, collections of HRM processes, and integrated collections of HRM processes, including shifting major responsibility for the overall HRMDS to the provider?


Who makes these decisions and are there any pending opportunities to influence them? Should we?


How do we decide on the scope of each outsourcing relationship? Are we inclined toward one-off or more integrated arrangements? Why or why not?


How do we manage these relationships? What are the governance structures and processes? What are the performance incentives? Are there any problems with these relationships? If so, what problem resolution techniques are we using, and are they working?


What is the HRM business model against which we consider processes for outsourcing? Does it match each SLA already in place? What changes, if any, should we be considering in our HRM business model and in the related outsourcing relationships? Do we even have an HRM business model (i.e. an integrated view of our HRM processes, data, business events, etc.)?


What is our process for monitoring the financial and market health of our providers? Are we the first to know if there is a pending M&A? What about a management change or a change in their offering? Or a nasty scandal? Are we investing enough in our competitive intelligence effort? Are we able to monitor the financial health, market performance, and future direction of our providers well enough to ensure the success of our outsourcing relationships? Can we identify new providers that we should consider?


Are there any changes or expected changes affecting our providers? Are they to our good or not?


Would we be better able to achieve our HRM business outcomes with the capabilities of our HRMDS enhanced by further outsourcing and/or more integrated outsourcing? If not, why not? If yes, why?


Are there any nasty surprises awaiting us within our in-house HRMDS platform components? What about from Oracles acquisition of PeopleSoft? What about maintenance issues if were the last firm running on Tesseract, Integral, or another older platform? What if the vendors for our talent management, workforce management, performance management, etc. software decide its time to cut their losses?


Answering these questions, as well as the ones presented in the previous two columns, is important to our successful use of HRM outsourcing as a means of achieving high-quality HRM outcomes in support of the organizations business outcomesand that is the real purpose of HRM. But no matter how prepared we are, there are always those unexpected, and often unwanted, outsourcing suggestions that our colleagues provide. So that were not sidetracked by suggested adventures in outsourcing, next months column will help us consider such suggestions.

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