CREATING AND MEASURING SHARED SERVICES CENTRES AND OUTSOURCING ARRANGEMENTS

Executive Summary

1.     This briefing will explain that both HR outsourcing and the creation of HR shared services centres are agenda items for senior management. Both approaches have become key focus areas as organizations increasingly set out to:

-  cut costs

-  improve service delivery

-  focus on their core competencies

-  free up the time of HR professionals to focus on more 'mission-critical' work.

2.     The challenges of setting up a shared services centre (which are largely the same as setting up an outsourcing arrangement) will be explained, along with ways to overcome the challenges. A 17-stage process for planning and implementing a shared services centre is provided.

3.     The role of benchmarking in insourcing/outsourcing arrangements will be highlighted.

4.     A case report on Motorola will show how measurement can be applied to monitor the performance of a shared services centre and build trust with business customers.

5.     The important role of service level agreements (SLAs) to both 'sourcing' approaches will be delineated.

6.     Consideration is given to the advantages and disadvantages of outsourcing and insourcing and will outline the critical factors for succeeding with each approach.

7.     A case study on the partnership between oil giant BP and HR outsourcing vendor Exult demonstrates outsourcing best practice.

If you are a subscriber, click here to read the full briefing.

Click here to find out how to subscribe.