Eleven deals were signed in the past year around the globe. Here are the contracts that demonstrate governmentâs embrace of outsourcing.
Since the inception of this publication, HRO has rapidly evolved. No one expected that almost every area of HR would be touched by outsourcing. In the early years, the only major deals signed were in the private sector. But things have changed.
In late 2002, Convergys and the state of Florida signed a nine-year agreement for $350 million. This was just the beginning. After building momentum with this deal and learning how to maneuver with a government client, Convergys and the state of Texas joined forces in 2004. With these deals, a floodgate opened, and people began to take notice.
Part of the reason for the slow build of outsourcing in the public sector was public objection. Many public workers are unionized and not likely to lead the cheering section for HRO once an agreement is announced. Because workers fear they will be downsized or phased out, public-sector resentment remains high despite growing adoption rates in the private sector.
However, despite the possibility of criticism, more and more public entities are throwing their hat into the ring. In the past year, there have been major signings with a total contract value of almost $2 billion combined. Public sector deals are being born all over the globe. We have eleven deals represented, covering Canada, the U.S., Ireland, the U.K., and Australia. The deals range in nature from national to regional to local government.
HRO Today defines the public sector as allgovernment entity . These may include municipal government, state-sponsored educational institutions, federal agencies, and others. The deals cited were signed in the past 12 months.
A special thanks is in order for Glenn Davidson, president, EquaTerra Public Sector, for his help in compiling this list.