HR Outsourcing and Transformation

A recent EquaTerra survey suggests that certain areas within HR are growing rapidly in the outsourcing domain. Apparently, tasks like payroll processing;benefits administration and HR-IT are the areas organizations find most useful to outsource.Blackenterprise.com reports a Hewitt Associates study that 94% of organizations outsource at least one HR function.

The Business Wire EquaTerra report also suggests  that outsourcers prefer providers who can help transform their organizations. This left me wondering about Jack Welch’s incredulous comment in his recent Fairfield University interview.    Mr. Welch was wondering why most CEO’s are always huddled with the CFO rather than the CHRO. The HR chief is the one who can help transform organizations particularly with a HR department freed up from mundane tasks and now able to facilitate better employee performance.

Sarbanes Oxley Compliance

After the Y2K rush on code writing  it appears that Sarbanes Oxley Compliance is the next big effort. Both articles and my industry friends tell me that this is an area where everyone is rushing in to make sure that they are compliant. The Worldcom CEO Ebbers photo does send a cautionary message.

In the SOX context outsourcing seems to straddle the academic fields of corporate ethics, legal compliance apart from the domain skills of auditing and outsourced IT.

Seems like a good topic to discuss…

Relationships

"Innovation Generation in Buyer Seller Relationships" is my Ph.D. dissertation topic. Somehow, there is little talk in the media about the importance of B-to-B relationships which really have given rise to the popularity of B-toC relationships and CRM systems in the B-to-C domain.

It was thus good to read about provider-outsourcer relationships from UK. Apparently,  Altos Origin has won a 10 year sole provider contract with Britannic. This development occured after Britannic acquired Resolution Life Group. Bloomberg reports that this merger was well received by the market.

A fragmented or changing supply base; is not good for managing any kind of supplies; supply managers will assure you. Much more so when it comes to knowledge based services…

4th of July and satisfied customers

What a great day- great weather , hotdogs with mustard sauce and fireworks in the evening. We had called Calcutta (now Kolkata) and guess what – folks totally unconnected with outsourcing  knew all about the 4th of July holiday. Young folks working at Call Centers for  US companies were having a day off. Just to check out I called various 1800 nos. and found well attended telephones anyway- I was a satisfied customer. As a consumer, my "pursuit of happiness" went well today!

When Jack Welch talked about the central purpose of any business as creating "satisfied customers" I thought the message was simple. Mr. Welch also said that "organizations do not create jobs- satisfied customers do". Think about it, in whatever business you are…

“Backsourcing”

In his recent story in the North West Indiana Times, Keith Benman mentions the phenomena of "backsourcing” (earliest scholarly citation I could find Hirschheim, R. and M. Lacity. "Backsourcing: An Emerging Trend," Journal of Strategic Outsourcing Information, 45, 1998, pp. 78-89, Jeff Kaplan has a nice article too) where outsourcers become dissatisfied with outsourcing results and "backsource" the activity. The story mentions examples from IBM and JP Morgan and Sears with Computer Science Corporation.

The "backsourcing" phenomena seemed really interesting and using relationship marketing jargon it seems like a "marriage" going back and forth fairly amicably (?).My quick research revealed that the genesis of the "backsourcing" of the IBM JP Morgan $ 5 billion (yes billion) deal is linked to the merger of Bank One and JP Morgan.  Apparently, doing strategic stuff in-house became more important so the employees who had transferred to IBM (the provider) got transferred back (To JP Morgan/Bank One).

The Sears reference in the Benman story seems unclear , Sears refers to building a relationship with Computer Sciences Corporation rather than "backsourcing" stuff.

In any case, thanks to the authors cited above for giving a great point for discussion in my MBA Class.

The excitement and scare of “alerts”

I intended to update my blog every few days and oops I find that I have not been posting stuff. My excuse, I got "scared" with the ongoing developments in the knowledge based outsourcing domain.

How did I find out ? By subscribing to "Google" alerts and "Proquest" refereed publications alert. In my scholarly world, I need to say something that is not only  new, but that builds on scholarly precedence. And never tell a scholar that anything is really new without any precedence…

Just to keep track on scholarly material coming out in the knowledge based outsourcing domain I had signed up for "alerts" from Proquest. As soon as certain keywords popped up in scholarly refereed works I would get an email summary.

Believe me this spurred me like nothing else to upgrade my American Marketing Association papers for Journal submission. Signing up for alerts is really "scaring" and motivating at the same time….

Meanwhile Google Alerts sent me five alerts in one message about various industry news in the domain. Busy time.

Alan Greenspan and “The World is Flat”

I had just happened to switch on the CSPAN televised testimony of Federal Reserve Bank Chairman , Alan Greenspan (June,9 , Joint Economic Committee of the US Congress).

It was delightful to see how each Committee Member enjoyed the opportunity of talking to the venerable Greenspan!

Somehow the MSM (Main Stream Media) has not picked up the  question someone asked Greenspan about the "The World is Flat" by Thomas Friedman. Alan Greenspan commented on the cover jacket picture but did not seem unduly concerned about the outsourcing question in the new global world. Greenspan  gave the impression that Americans and America would eventually find more opportunity than threat in the outsourcing phenomenon.

For me it was time to start my blog…..