From Quick Gains to Real Value: Major Trends in HR Outsourcing for 2012

While 2011 was marked by increasing economic, social and political volatility geopolitically, HRO Today’s panel of experts believes that HR outsourcing is maturing while remaining flexible enough to adapt to a changing marketplace.

Many of the experts consulted see this is as the golden age of HR outsourcing, and Jill Goldstein, lead for Accenture's HR Business Process Outsourcing offering, is one: "HRO started off as a cost reduction move for some companies. It has expanded well beyond that to become a driving force for creating business value. We expect 2012 to bring even greater emphasis on business outcomes, as companies explore HR BPO as a way to meet business needs and improve business performance."

During 2011 there was a spate of acquisitions and key acquisitions to enable providers to offer multi-country offerings to globalizing clients. Other trends included the increasing use of analytics to generate business insights that improved performance, as well as greater client interest in options enabled by cloud computing, such as software as a service.

When it comes to analytics, Goldstein says the focus is increasingly on discovering insights that inform the way the business is managed. “Clients will continue to demand more from analytics—it’s no longer just about metrics and dashboards,” she explains. “Companies increasingly understand the value and importance of having an outsourcing partner that can provide true insights to enable improved decision making. They realize there are more meaningful operational insights that can be gained from analytics than a set of metrics.”

Read the full article: Forecast 2012: HR experts offer their opinions.