Introduction

Based on in-depth interviews and data collected from senior governance teams of Human Resource Outsourcing (HRO) buyers, this report identifies the definitions, metrics, and measures overall and within specific HRO process areas that facilitate optimal realization of the desired outcomes of HRO. This research will help companies understand key characteristics of some of the large HRO deals and the satisfaction levels of HRO buyers in terms of cost savings and quality of service.  

Scope

• 18 North American HRO buyers representing 27% of the overall market in terms of Total Contract Value (TCV) through 2006
• Each buyer outsourcing a minimum of three HR functions and servicing more than 3,000 employees
• Industries include manufacturing, retail, financial services, high-tech, telecom, and healthcare

Contents

This report examines the key metrics of some of the large HRO deals along three key dimensions – scope, pricing, and quality. Also, it conducts a deep-dive into the training process. Each dimension of HRO deals is discussed in detail (and illustrated with supporting data and analysis) to provide the reader information in easy-to-apply, bite-size pieces. For example, pricing metrics, offers the following insights, among others:

• Pricing model
  • Fixed pricing model is most often used
• Overall price-points
  • Price-points for multi-client implementations are significantly lower than single-client implementations
• Process level price-points
  • There is a significant variation in price-points by HR processes
• Cost reductions
  • All the buyers surveyed were able to achieve their cost reduction targets