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The Next Generation HR Outsourcing
1. The Next Generation HR Outsourcing
Ravishankar V and Surabhi Mishra
HR experts around the world agree that the nature of workforce will alter drastically in the
next few years across industry sectors. The initial wave of HR Outsourcing was primarily
driven by cost savings and focused on getting hygiene issues like payroll and compliance
right. But the next wave of HR Outsourcing will be determined by considerations beyond these
hygiene factors.
In a world, where computing will be pervasive, employees will expect superior HR services to
be delivered through newer channels. This calls for better enablement of technology in HR.
Technology capability of HRO vendors will be all the more important in the emerging scenarios.
This paper examines the emerging reality; its implications on HR and urges organizations to
rethink their partnering choices for outsourcing.
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3. more matrix, it will be imperative to measure performance A few critical questions to ask before you begin an
at shorter cycles than is prevalent today. Timesheets and association would now include:
timeclocks may become outdated in several industries and
• Does the partner comprehend the extent of technology
employees will record time at work through corporate
play in the future state of HR?
networks or phones.
• What is the ability and willingness of the partner to
Data driven decisions in every other part of the organizations invest in R&D and innovation?
will drive metric driven HR organizations to measure and
• Does the partner have frameworks and enabling
improve the 'business value' across towers.
environment to support technology led
All these would have to be delivered on increasingly slender differentiation?
budgets, and we are talking about serving a workforce that
is more connected, informed and mobile, literally.
So how can HR become future ready? There are many aspects What Infosys is doing to enable the future HR?
that could be discussed, but we will restrict it to the role of
Here are few examples of what is in the works for enabling
technology in this paper.
the future of HR Outsourcing at Infosys:
Hire-to-Retire Platform: A comprehensive solution that
provides HR an integrated technology and processing
Technology - An Enabler and Value Multiplier
solution for managing the HR functions out of a box.
for HR
This ensures that organizations can migrate and
There is an increasing awareness that technology would pave deliver HR services with optimal total cost of
the way forward for HR to connect, manage and deliver ownership.
services to a global workforce. And there is widespread
Smart HR Portals: Enabling Employee and Manager
agreement that the cost of owning, integrating and upgrading
Transactions through web and mobile portals.
technology is not an easy problem to solve.
HR Reporting and Analytics: The HR analytics
The kind of technology that we are talking about is not only
framework is designed to provide crucial business
the ERP suites or complex backend applications, but
intelligence to organizations that can support critical
technology that is transparent and user-friendly. Technology
talent management and organization design issues
that looks simple to the user and reach employees through
for global organizations.
newer channels.
Learning on the go: A Just-in-time knowledge solution
This calls for a different model of owning and managing
that delivers expert advice through hand-held
technology infrastructure. New models like SaaS offer the
devices served out of the platform to solve critical
freedom for HR to focus on solving some of their core issues,
knowledge needs of the organizations and cuts
without worrying about technology.
millions on training spend.
The traditional model of having a separate technology partner
Competency Frameworks: A simplified model that can
and an outsourcing partner for HRO may not make a lot of
be easily implemented and helps the organization
sense in the future.
to migrate to best of breed HR practices. The
HR today needs an outsourcing partner who can think framework also helps to bring down costs by
technology, user experience and business process enabling a cross-functional shared service centers
transformation together. across talent acquisition, administration and
So while selecting a partner for your HR outsourcing journey, development cycles.
it is necessary to think new and think long term. You will Smart ID cards: Critical HR transactions including
need them much more to enable the future than just handle timesheets and cash advancement and settlements
pay slips or churn compliance reports. Factors that were 'nice managed through biometrics and embedded
to have' until now but will soon become essential. technology.
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