Increased Efficiencies and New Services Implementations Through HR Business Process Outsourcing: Mid-Market Case Studies
IDC OPINION
HR business process outsourcing (BPO) continues to grow in popularity and is reaching the mainstream in terms of adoption. In fact, HR BPO is the fastest-growing segment of HR services. IDC forecasts the market to increase at a CAGR of 16% in the United States to almost $18.9 billion by 2010. This spending is not just at the high end of the market. More midmarket firms are also turning to HR BPO as a strategy to reduce costs and redundancy and to gain access to technology that they do not have today. Automatic Data Processing (ADP) offers midmarket and larger firms an HR BPO solution called Comprehensive Outsourcing Services (COS). Acuity Brands and Credit Suisse have implemented ADP COS and have realized a variety of quantitative and qualitative benefits:
- Acuity Brands was divested by National Service Industries (NSI), its parent holding company, in 2001. Until 2004, Acuity Brands' two business units - Acuity Brands Lighting and Acuity Specialty Products - ran independent and duplicate HR systems. By consolidating and integrating services, Acuity Brands' HR epartment can now use a single system to locate an employee, something it was unable to do previously. Additionally, Acuity reports a successful open enrollment with 90% online participation. The benefits team will be able to take on a new role and explore options such as consumer-driven health plans and health savings accounts (HSAs).
- Credit Suisse acquired another investment banking firm and needed to consolidate on a single solution. As a result of implementing ADP COS, Credit Suisse was able to reduce its headcount in the payroll department from 50 to 8 employees and reports payroll services savings of 50% compared with the previous year's costs. ADP was able to save Credit Suisse an additional 50% of its multimillion-dollar New York State Unemployment Tax liability through adjustments to voluntary unemployment tax payments. Credit Suisse is also utilizing Web-based self-service through ADP COS and is offering employees services that were previously unavailable.
Download the full white paper below.
IDC/ADP Mid-Market HRO Case Study