HR Process Changes No Longer Driven by Cost

November 18, 2005 ( - A survey by The Shared Services and Business Process Outsourcing Association (SBPOA) and ADP Employer Services found that the number one driver of HR transformation within organizations is to "make HR strategic."

In its announcement on the second annual “HR Transformation: A Global Vision” survey, the SBPOA said 68% of survey respondents cited “Make HR Strategic” as a reason companies are transforming their HR processes and methods of service delivery. According to the announcement, the other top reasons were:

  • Service Improvement (66%),
  • Respond to Changes in Business (60%),
  • Benefit from New Technology (49%), and
  • Better Manage the Cost of Internal Processes (47%).

Andre Rampat, SBPOA Research Director and author of the report, said in the announcement, “This indicates that organizations are realizing their HR groups can add significant value to the growth and competitive advantage of the company by enabling them to provide strategic perspectives, improved and more efficient services and act as a consultant to business units, rather than focus on transactional tasks and administrative functions.”

In addition, the survey found that the top outsourced processes, in order of popularity, are payroll, pension administration, health and welfare benefits, expatriate and relocation administration, and stock option administration.

Evaluation factors for service provider selection, according to this year’s survey, are proven ability to meet service standards, multi-country capabilities, functional coverage and expertise, specialization in relevant functions and technical expertise; as opposed to resources, facilities, location and workforce.

The results will be available on the SBPOA Web site, .

The SBPOA provides online and offline networking, education, best practices and independent commentary on the evolution of shared services and BPO.