When it comes to outsourcing HR technology, more companies are embracing a selective approach rather than exclusively relying on a single provider, Watson Wyatt Worldwide, a leading global consulting firm, has found.
ìDecisions about how best to use outsourcing are very specific for each firm, depending on its needs and culture, but itís clear that many companies would rather not use one vendor for all their HR outsourcing needs,î said Richard Hubbard, director of Watson Wyattís U.S. technology and administration solutions practice.
Watson Wyatt research in 2005 showed that only 8 percent of U.S. companies surveyed consolidated benefits administration and other HR activities with a single vendor, and only 5 percent planned to do so by 2007.
Studies by two independent technology research firms, CedarCrestone and the AberdeenGroup, confirm this shift. In its 2006 ìWorkforce Technologies and Service Delivery Approaches Survey,î CedarCrestone finds a ìstrong move of respondents toward selective outsourcing.î A 2006 report by the AberdeenGroup says companies are struggling to make a business case for total outsourcing because the return on investment has not been substantiated.
At Watson Wyatt, with its strong focus on providing quality delivery, the number of outsourcing projects in setup or delivery mode grew to 123 in September 2006, up from 66 a year earlier. The firm now has nearly 200 employer clients and 5 million employee participants using its outsourcing solutions.
ìThe demand for selective outsourcing solutions is increasing for a number of reasons,î Hubbard said. ìSuch solutions not only maximize savings by combining clientsí in-house capabilities with our own, they maximize service. The up-to-date technologies that vendors provide allow employers to offer a self-service, Web-based approach that helps employees better understand and use their benefit programs.î
To learn more about Watson Wyattís selective outsourcing solutions, visit Watson Wyatt on the Web at watsonwyatt.com.
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