October 20, 2009 by Stan Lepeak
EquaSiis recently completed a new
whitepaper looking at HRO (human resource outsourcing) renewal
best practices. The paper was sponsored by
HRO service provider Convergys. If any of you
are at the HRO Summit in Tampa this week, I am there
delivering a session on HRO renewals based on this research with
Steve Ditty, VP or HR Management at Convergys.
The topic is a timely one given the number of
early multi-process HRO deals that are now approaching
renewals. It is important given that one of the
key success factors with HRO renewals is to start far enough in
advance of the renewal date to give adequate time to work through
the process. So even buyers in the early stages
of HRO efforts should have a plan and timing agenda for inevitable
renewal efforts.
The paper provides an analysis of renewal
options and guidelines (see figure below for one example) and
frameworks to employ during renewals. It
identifies key success factors (start early, involve key buyer and
service provider stakeholders, reevaluate the HRO business case and
realign to the HR and corporate strategies, etc.) and important
blind spots to avoid (rearview mirror strategy, renewal isolation,
new contract/old premises, etc.) These best
practices are further illustrated through the review of three
successful Convergys HRO renewals.
The paper is useful for buyers both in the
early stages of their HRO efforts and especially for those
approaching renewals. Many of the best practices
apply to other functional areas of
outsourcing.