Outsourcing Problem Analysis
This is a good article that talks about outsourcing and recognizing when you should consider outsourceing and what parts of your business operation you should be outsourcing. This article is from an HR manager’s point of view and shares a unique point of view from both sides of the issue. This article will be more interesting to a larger company with an HR department that it will to a small business or single entrepreneur, although it could be good reading for future insight.
As an HR professional, you have responsibilities in several
broad areas that have a significant impact on your company’s
bottom line, directly contributing to the corporate return on
investment. The outsourcing choices you make are critical
decision points that affect both your employer and the HR
community at large. We recognize that you want and need to make
informed choices, and we can help.
The following problem analysis explores emerging strategies in
human resources.
Increased workloads resulting from governmental requirements,
budgetary cutbacks, profitability margins and operational
necessity require that HR professionals do more with diminishing
resources. In approaching this challenge, we analyze a range of
choices. Depending on your company’s culture, you may consider
any or all of the following:
-working nights and weekends “creating and hiring a new position
“outsourcing a function or large project “directly contracting
with an independent professional colleague: Outsourced
professional employee
Problem Analysis Many times each day you reach a decision point
and choose which priorities get your time and attention.
Accepting added accountability in your HR department and
thriving with your ever-growing workload require detailed
analysis of your decision points.
Working nights and weekends Every HR professional worth his or
her paycheck is pressed for time. Workweeks ranging from 55 to
60 hours are commonplace. You’ve determined that you’re already
working smart and hard to keep current with the business’s
needs. Your human resource career has transitioned from a
hands-on tactical position to holding down a strategic role in
the HR department. As the competition for capital intensifies,
how will your decision to outsource translate to your company’s
bottom line?
Creating and hiring a new position G & A cutbacks mean that
there’s no budget for new hires this year. The term hiring
freeze has made a comeback after nearly a decade in hibernation.
You no longer fill vacancies as they occur, and this trend may
continue for the near future. In fact, you quite possibly
severed someone with whom you worked closely. How will you
provide greater results with less?
Outsourcing a function or large project
Speak to ten companies, and ten HR managers will define
outsourcing differently. Small- or medium-size firms frequently
use single-source outsourcing for operations such as payroll or
benefits. Fortune 500 firms have moved toward outsourcing all
transactional and tactical practices. Seven-, eight- and
nine-figure contracts in the form of comprehensive solutions
have increased dramatically over recent years. Once set into
motion, Fortune 500 outsourcing agreements often have a shelf
life of five or more years. The definitions employers use to
quantify successful outsourcing depend on the goals and
objectives outlined at the onset of each engagement - and they
vary widely. How will you determine if and when outsourcing
meets your needs?
Directly contracting with an independent professional colleague:
Outsourced professional employee Today’s economy challenges HR
professionals to demonstrate their advocacy of responsible
stewardship. Historically, the personnel agency evolved as the
American franchise economy grew from the 1950s. By the 1970s,
franchise usage expanded - from food to cars to personnel. The
decade of the 1990s required the franchise and boutique staffing
agencies to invest heavily in technology or sink in the mud.
The novel Ivanhoe characterized soldiers who offered their
lances to any king as free lances. Today’s e-commerce and
growing media technologies, wireless Internet with DSL, and
effective corporate Web sites with e-mail together provide the
daily tools used by the modern entrepreneur. A solution with
both strategic and visionary applications is to identify and
formulate direct relationships with independent HR
professionals. How can you partner and leverage these tools
immediately?
With research, you can determine the outsourced professional
employee who is a solution in search of problems. A July 2003
survey by Consultive Source asked human resource professionals
to rank the importance of the following three vision & values
competencies held by HR vendors: “MEASURABLE RESULTS ” Delivery
of solutions by the alignment of HR mission, vision and strategy
“CONSULTIVE ” Solving problems with hands-on industry
experience, creating a strategic alliance significantly stronger
than a typical vendor/supplier relationship “HUMAN RESOURCE
LEADERSHIP ” The blending of business savvy, leadership,
facilitation/coaching, strategic perspective, conceptual
thinking, internal consulting and the tangible perspective of
human resources within the organization
The survey listed MEASURABLE RESULTS at the top, with 77 percent
of the vote. CONSULTIVE SKILLS and HUMAN RESOURCE LEADERSHIP
tied for second place.
Any freelance outsourced professional employee may prescribe to
this and should prioritize their skill set accordingly. Concerns
about the outsourced professional employee’s abilities,
stability and results can resolve themselves by taking a “test drive.”
Similar to your auto mechanic and electrician, you expect
consistent service from those you know and trust. The traits
exhibited by every outsourced professional employee must include
high quality service, fair prices and deadlines met as needed to
name just a few.
The right outsourced professional employee at a fair and
competitive rate will provide innovation in education, strategy,
technical resources and skills. Choosing to outsource and manage
this partnership and process successfully will enable you to
protect corporate capitol and shareholder value. Which
technology applications or transactional differences describe
your vendors as a strategic partner of choice?
Focused exclusively on EMPLOYEE RELATIONS, HR COMMUNICATIONS and
RECRUITMENT PROJECTS contact John Mooney at (972) 355-7481 or
email Jmooney@ConsultiveSource.com or the company website
www.ConsultiveSource.com. We utilize extensive hands-on industry
competencies to solve your HR challenges. John Mooney Supports
small, medium or large human resource projects with 20 years of
human resource and operating experience
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Comments
I was on Yahoo and found your blog. Read a few of your other posts. Good work. I am looking forward to reading more from you in the future.
Tom Stanley
As a provider of outsourced B2B lead generation, we often find that our clients find value if our service costs less than hiring a new sales or business development person. In these economic times, companies offering outsourcing services must either price themselves below the cost of a new-hire, or have a very good value proposition with strong ROI if they are more expensive.
Thanks, and great post.
-Jason
Great post, you’ve got some excellent insight on B2B lead generation. As a social media specialist for a b2b lead gen firm, I can attest to the fact the outsourcing your b2b lead generation is crucial. Here’s an article I wrote, check it out if you’d like http://www.gatewaybizdev.com/blog/2010/02/3-tips-for-successfully-outsourcing-b2b-lead-generation/
There is a rapid growth of Outsorcing these days as manufactures try to cut cost and maximize profit..”‘
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