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HR Q&A
- Posted: 28.07.10
- Subject: HR Team Structure
- Job Function: HR Operations & Shared Services
- How successful are HR outsourcing arrangements? What do they potentially mean for my HR team?
- Answer:
- The number of HR outsourcing arrangements in Singapore, Hong Kong, China, Japan and across the region have significant increased in the last five years. These arrangements seek to outsource the transactional aspects of HR, much in the same way that larger companies have set up shared services organisations in lower cost countries to handle transactional IT work. Outsourcing in the context of HR generally covers Operational HR matters such as payroll, Compensation & Benefits systems and high-volume Recruitment. More and more organisations are moving to outsourcing as a means of eliminating the need for high cost HR resources to handle low value HR transactions. But achieving economies of scale in outsourcing, at least across Asia Pacific Japan, is still a long way off. The complexities of the many different countries in the region (in terms of such factors as language, legal regulations and varying levels of HR sophistication to name just three) make pan-regional arrangements harder and less cost-effective to implement. HR Leaders need to determine the extent to which they will trade off the overall control and manoeuvrability of the HR function against outsourcing arrangements that involve more stakeholders and a greater reliance on external providers for success.
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- China, Permanent | 03.02.2012
- Singapore HR Lead (1329/TCCG), Banking & Financial Services
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- Regional Head of Shared Services, APAC (938/TCCG), Banking & Financial Services
- Singapore, Permanent | 02.02.2012
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