Recent times have seen increased adoption of global sourcing (GS) across multiple business functions. Organizations are looking at GS not only from a cost-savings perspective but also as a strategic enabler in terms of getting access to specialized skill-sets and achieving scalability. Within an outsourcing context, suppliers are increasingly leveraging a global delivery approach so as to offer services at the optimal price and quality. With buyers realizing value, this has only led to increased adoption of global sourcing.
Compared to other BPO functions like call centers and finance and accounting (F&A), human resources (HR) has seen limited adoption of GS; but changes are afoot. Some of the factors that are positively influencing offshoring, especially within HR outsourcing (HRO) are:
A “transform-transfer” approach that creates streamlined processes with better documentation
A phased approach to offshoring, leading to better success
Increased maturity of offshore delivery locations
Increasing buyers’ comfort in receiving services from an offshore location, especially non-employee-facing transactional work
While the adoption levels are already increasing in the large market segment (the >15K employees segment), the inherent characteristic of the mid-market (3K-15K segment) should result in increased adoption of offshoring.
This whitepaper discusses:
Current adoption of GS in HR and the changing dynamics
Value proposition of GS in HR
Suppliers’ GS strategy in HRO
Considerations for choosing an appropriate offshore location
Note: this report is from 2012. See our most recent R2R research report.
The Finance & Accounting (F&A) function comprises three end-to-end processes – Procure-to-Pay (P2P), Order-to-Cash (O2C), and Record-to-Report (R2R). This report focuses on…