HRO, Value, Technology, Cost, Savings

HRO Buyers Focused on Value, Technology, Not Cost Savings

To gain value creation and access to technology, a growing majority of Human Resources Outsourcing (HRO) buyers are willing to forego cost savings and sign outsourcing deals that favor the "transfer-transform model" in which a company's processes and technologies are provided by the supplier, according to a new study from the Everest Research Institute.

The HRO buyer survey and analysis, Human Resources Outsourcing Market Update: HRO Benchmarks, also noted transactions since 2004 have rapidly shifted from highly customized solution contracts to more configured or "off the shelf" solutions to leverage suppliers economies of scale. Thus, buyers with contracts coming up for renewal in the next few years can expect to receive price improvements over their original contracts.

For additional information and an extract of the HRO Market Update/Benchmarks study, please visit www.outsourcing-center.com.