[HROA Essentials] Mitigating risks - human resources business transformation outsourcing

Making the decision to outsource human resource processes is a major step for many organizations. Transitioning to an outsourcing arrangement can pose a unique set of risks that must be proactively managed, given the complexities associated with transferring signifi cant operational processes to a vendor while maintaining ongoing service to internal customers.

IBM believes that clients and vendors need to work together to establish strategies that can mitigate potential risks in the management of what we call HR Business Transformation Outsourcing (HR BTO). Rather than simply handing over a process to an outside firm to operate, HR BTO focuses on transforming HR activities to improve efficiency and effectiveness, and create business value. Based on secondary research and interviews with outsourcing providers, consultants, academics and individuals responsible for outsourcing arrangements, we have identified four basic sets of risk mitigation activities:

Read about the risk mitigation activities, and see the accompanying chart by downloading the pdf: HR outsourcing risk mitigation

by Eric Lesser, Associate Partner, IBM Institute for Business Value
Joanne Stephane, Managing Consultant, IBM Human Capital Management Practice