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.

HR-XML Meeting April 11-12 Co-Located With NY HR Week

RALEIGH, N.C., Feb. 16 – HR-XML’s upcoming New York meeting, April 11-12, offers HR decision-makers a unique networking opportunity and unparalleled access to essential information on how cutting-edge, standards-based technology is shaping the future of HR solutions.

HR-XML’s meeting is part of NY HR Week, which also includes TecHR World, HRO World, the HRO/FAO Executive Summit, NY/HR Solutions Conference and the HROA Annual Meeting. Six compelling HR events in one location!

The HR-XML meeting includes education and working sessions for a range of HR-XML Consortium projects, including benefits enrollment, assessments, competencies, and indicative data for benefits and payroll outsourcing

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ACS Awarded $120 Million Human Resources Outsourcing Contract With Delta Air Lines

DALLAS, Feb. 14 /PRNewswire-FirstCall/ — Affiliated Computer Services, Inc., (NYSE: ACS – News), a premier provider of business process and information technology outsourcing solutions, announced today that it has been awarded a human resources (HR) business process outsourcing (BPO) contract with Delta Air Lines, the United States’ second-largest airline. The seven-year agreement is valued at $120 million.

Under the terms of the new HR outsourcing agreement, ACS will provide a broad range of human resource functions for Delta, including compensation and benefits administration, relocation services, recruiting, learning, payroll, HR Information Services, and employee call center services for Delta’s North American employees and retirees

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Nationwide(R) Signs Business Service Provider Agreement With Ultimate Software

WESTON, Fla., Feb. 8 /PRNewswire-FirstCall/ — Nationwide Mutual Insurance Company, one of the largest diversified insurance and financial services organizations in the world, has signed a business service provider agreement with The Ultimate Software Group, Inc. (Nasdaq: ULTI – News), a leading provider of Web-based payroll and workforce management solutions. The agreement, signed in December of 2004, grants Nationwide a non-exclusive license to use Ultimate Software’s UltiPro Workforce Management solution as a stand-alone or integrated offering for Nationwide customers

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Another Big HR BPO Win For Hewitt- Thomson

LINCOLNSHIRE, Ill. –(Business Wire)– Feb. 4, 2005 — Hewitt Associates (NYSE: HEW), a global human resources services firm, announced today it has signed a contract with The Thomson Corporation (NYSE: TOC; TSX: TOC), a global integrated information solutions provider, to provide HR business process outsourcing (BPO) services.

Under a five-year agreement, Hewitt will provide certain HR BPO services in the areas of benefits, compensation, payroll, learning and development and recruiting for Thomson’s 28,000 employees in the United States

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William Gallagher Associates and Genesys Partner to Deliver Best-In-Class HRO and Insurance Brokerage Solutions

Comprehensive Offerings Accelerate Revenue Growth and Offer Clients Flexibility and Choice

METHUEN, Mass. (January 31, 2005 ) – – Genesys, a provider of outsourcing services and software for human resources (HR) management, payroll, benefit administration and payments, self-service, learning, and performance management, and William Gallagher Associates (WGA), a leading provider of insurance brokerage, risk management and employee benefit services, today announced a strategic alliance to deliver best-in-class insurance brokerage and human resources outsourcing (HRO) solutions to customers

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Fidelity to handle HR for BASF

Fidelity Investments said Thursday that has won an outsourcing contract with BASF Corp. to handle that company’s human resources operations.

The five-year contract would have Fidelity conduct BASF’s payroll operations, health and welfare benefit programs and retirement plans for BASF’s nearly 20,000 U.S. employees and retirees. Financial terms of the contract were not disclosed.

Boston-based Fidelity touted the agreement reinforcing increased interest by major corporations to outsource their human resources operations to a single provider. The transition of BASF’s programs to Fidelity’s is expected to be complete by fall 2005, with most services being activate in early 2006.

BASF Corp., with headquarters in New Jersey, is the American affiliate of BASF AG, Ludwigshafen, Germany. It had sales of approximately $9 billion in 2003.

American Consolidated Media Selects Ultimate Software’s Intersourcing

WESTON, Fla., Jan. 25 /PRNewswire-FirstCall/ — Ultimate Software (Nasdaq: ULTI – News), a leading provider of Web-based payroll and workforce management solutions, announced today that American Consolidated Media, Inc. (ACM) has purchased UltiPro delivered through its hosted model, Intersourcing, on a per-employee-per-month pricing basis. The company made the choice in November 2004 and plans to go live on UltiPro by the end of January 2005.

A Dallas-based publisher of 34 community newspaper and shopper publications in Texas and Oklahoma, ACM found that the service bureau it had been using could not provide the strategic HR tools, management-level system access, or flexibility to maximize the productivity of its HR/payroll staff and position the company for growth

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Hewitt Associates Signs Rockwell Automation to a 15-Year HR Services Contract

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–Jan. 13, 2005–Hewitt Associates (NYSE:HEW), a global human resources services firm, announced today it has signed a 15-year contract with Rockwell Automation (NYSE:ROK) to provide HR business process outsourcing (BPO) services. Rockwell Automation provides industrial automation power, control and information solutions to global 500 corporations.

Under the agreement, Hewitt will provide workforce administration, payroll, health and welfare and defined benefit services to Rockwell Automation’s 15,000 U

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New Privacy Rules

Big Brother is watching–HRO users and providers beware.

by William B. Bierce

As it turns out, Big Brother is watchingHRO users and providers beware.


Federal privacy law is expanding with the Security Rule under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the privacy and civil liberties procedures established under the Intelligence Reform and Terrorism Prevention Act of 2004 (IRATPA) one for electronic health information, the other for virtually all personal information that could be discovered in homeland security and anti-terrorism investigations. For HRO customers, employees, and service providers, each law will impose new obligations and safeguards.




The HIPAA Security Rule reinforces the Transactions Rule and the Privacy Rule, which focus on the privacy of protected health information. The HIPAA Security Rule takes effect on April 21, 2005, for all covered entities except small health plans. In the private sector, all private health plans, healthcare providers, and healthcare clearinghouses must assure their customers that the integrity, confidentiality, and availability of electronic health information that they collect, maintain, use, or transmit will be protected. The goal is to ensure the integrity and confidentiality of the information and to protect against any reasonably anticipated threat or hazards to security or integrity of the information and unauthorized use or disclosure of the information. The HIPAA Security Rule will be an additional compliance requirement for HRO deals. There is no specific federal security standard, but only one that adopts reasonable and appropriate precautions. The enterprise customer cannot simply dump the HIPAA compliance obligation upon the service provider. As a best practice, HRO customers and their providers should review the design and implementation of the processes involved in compliance, and establish periodic reviews to deal with changes that might be needed. The costs of such periodic changes should be discussed as well.




Under IRATPA, executive departments and agencies must appoint a bevy of new privacy and civil liberties officers to protect against abuses of constitutional and statutory rights. Within the National Intelligence Department, a Civil Liberties Protection Officer, reporting directly to the Director of National Intelligence, will be appointed to meet constitutional, technological, and statutory mandates. To protect constitutional freedoms, this officer will be responsible for compliance, review, and assessment of complaints and other information indicating possible abuses of civil liberties and privacy in the administration of national intelligence programs. As a counterbalance to the increasing centralization of powers in the war on terrorism, a Privacy and Civil Liberties Oversight Board will be established within the Executive Office of the President as part of an enhanced system of checks and balances to protect the precious liberties that are vital to our way of life. In addition, Congress recommended each executive department or federal agency with law enforcement or anti-terrorism functions designate a privacy and civil liberties officer.




In the private sector, enterprises that either hire their own private security officers or rely upon service providers to do so will now be subject to new regulation. A private security officer is an individual other than an employee of a Federal, State, or local government, whose primary duty is to perform security services, full or part time, for consideration, whether armed or unarmed and in uniform or plain clothes. IRATPA authorizes prospective employers, after getting written consent from the prospective employee, to submit fingerprints for an authorized criminal history record information check for prospective private security officers. The employer must disclose the results to the prospective employee.




The new law opens the door to new regulation of access to criminal records in support of lawful employment beyond private security officers. The IRATPA law calls on the Attorney General to recommend to Congress any legislative improvements for the conduct of criminal history record checks for non-criminal justice purposes. As part of this process, commercially available databases will be reviewed as possible supplements to government records. Privacy rights will need further consideration, based on principles of employee consent, access to the records used if employment was denied, the disposition of fingerprint submissions after records are searched, an appeal mechanism, and penalties for misuse of the information. Employerswhether or not they outsource any HR administrative functionshould review and update their employee handbooks and the rules applicable to third parties having access to HR information.    

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To Outsource or not to Outsource?

What every HR executive needs to know before outsourcing HRM.

by Naomi Lee Bloom

Part one of a series on what every HR executive needs to know before taking the plunge into HRM outsourcing.


Whether or not your organization outsources one or more human resource management (HRM) tasks, functions, or processes today, or if youre considering or are already in a fairly comprehensive HRM BPO relationship, the responsibility for all such decisions lies very much with HR leadership. The CIO, CFO, and/or CEO may be the instigators, protagonists, or final approverswhich is increasingly the case in more comprehensive HRM BPO relationships but HR leadership must make any such HRM outsourcing decisions work and work well. Where there is responsibility, there is the opportunity for celebrating successes. This is always a good thing, albeit occurring less frequently than we would like. Unfortunately, there is also the all-toofrequent opportunity for paying the pricelitigation, lack of compliance, lost productivity, lost talent, lost opportunities, lost money, and/or disrupted career for failure. Since you are going to bear that responsibility, you will need to have the relevant information at your fingertips to assess the current state of outsourcing in your organization, to plan for any desirable additional outsourcing, and to head off at the pass any undesirable outsourcing adventures thrown out as suggestions at the next executive team meeting. Beginning with this column and continuing until Ive run out of questions, we are going to tackle first those issues that address the current state of your HRM outsourcing for which every HR leader needs ready answers. Then, just when youve thought that every question had been asked (for which youve prepared answers), were going to cover the questions that you should be prepared to answer when one of your colleaguesfresh back from a seminar or outsourcing provider sales pitchcasually suggests that more/less/total HRM outsourcing is just the ticket. By the time were finished, youll have questions and answers for every occasion. Simply load these into the PDA that you got for Chanukah/ Christmas/Kwanza, and you will be ready for HRM outsourcing action.




Before considering outsourcing, or any deployment tactic for your HRM policies, practices, and processes, we must ask and answer these most important questions:


What are the HRM business outcomes to which all of our HRM processes and the HRM delivery system (HRMDS) must contribute? How are these intended contributions going to be made and by when? At what levels of investment for what target values of the HRM outcome metrics? And who is accountable for what outcomes?


What would our HRM processes and HRMDS need to look like to achieve these business outcomes? How does this future state of our HRM business model compare to our current state HRM business model? How does this future state HRMDS compare to our current state HRMDS?


How are we planning to close these gaps? What are the benefits of closing these gaps? Are they sufficient to warrant the planned effort? Can we afford that plan?


The key point of these questions is that if you have no vision of your HRM business, no idea by what metrics youll measure progress toward that vision, and no idea what business outcomes are needed from the HRM aspects of the business, then youd better get these points nailed down before you dive into outsourcing or any other deployment tactic. Without a clear strategy for the HRM aspects of the business and without a well-defined HRM domain model, to include the relevant metrics, on what possible basis would you select outsourcing or any other deployment tactic? In the simplest of terms, if you dont know where youre going, it really doesnt matter your form of transportationyoull still end up running in a circle.  

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