For many HR managers, the term outsourcing in their department is still considered a bogeyman, even in times of digital transformation and optimization – at least that’s what a recent study by an IT service provider in cooperation with Cisar Consulting and Solutions GmbH shows, in which
almost 75 HR managers of small, medium-sized and large companies throughout Germany were surveyed. But are such fears still justified at the moment?
When it comes to topics such as business process outsourcing in the payroll sector , most HR decision-makers are often torn: On the one hand, they are aware of challenges such as digital change, reduction of costs and a targeted use of human resources, but on the other hand, they clearly want to keep control and knowledge in-house. In addition, it is also sensitive data whose protection is important. However, gut feeling usually prevails – so it’s best to leave everything as it is. It has worked so far. According to the study, this corresponds to about 57 percent of the opinions of surveyed HR managers who carry out their payroll and the associated IT infrastructure in-house independently.
The reasons for completing the tasks independently and the strategy behind them are manifold, but not new: If systems and processes run “in-house”, you remain independent and flexible. Your own data is (more) secure and know-how accumulated over the years is retained in your own company. These are at least the main reasons against outsourcing and the basis for putting gut decisions mostly above rational decisions on this topic.
But are these fears of loss of knowledge and control etc. really justified? After all, 16 percent have opted for complete HR outsourcing of payroll accounting, including relocation of the IT system. 27 percent of the companies surveyed have carried out pure IT outsourcing. As a convincing argument for HR outsourcing, the respondents saw the clear relief for employees, who again have more freedom for strategic and advisory HR topics instead of suffocating in administrative activities. It is also convincing that the issue of security is many times higher for certified service providers (especially in the IT environment). The topic of know-how is not lost either, but is shifted – after all, a service provider brings its own and usually new knowledge to the table. There are additional advantages for the client in the form of cost transparency (pay-per-use). Companies see themselves better prepared with regard to the digitization of processes.
However, many companies often shy away from HR outsourcing because the initiation of such a project alone can take on dimensions that are often not expected – the gut feeling is usually confirmed here and the project comes to a standstill. Active cooperation with a future service partner is therefore crucial for successful outsourcing. If you are faced with the decision to relocate parts of the HR department or even all administrative processes, a process consultant can provide a lot of information in advance and provide clarity about the entire project.
Most fears are therefore unfounded and can be put into perspective in advance – when considering whether outsourcing makes sense or not. In this respect, HR managers should face the so-called spectre of outsourcing and decide on a rational level to develop new solutions for the existing challenges in companies.
Do you have experience with HR outsourcing? Do you see HR outsourcing as an opportunity for your company?
Image source: Fotolia.com, Photographer: lassedesignen
