The intersection between HR strategy and HR technology

, ,

HRO update

systematicHR Avatar

This is actually an Indian update on the HRO market, but it has some interesting facts and opinions. First off, I had no idea that Hewitt was creating an outsourcing center there, but it’s not a surprise. I’m sure that most organizations outsourcing call centers are looking at or going to India.

An interesting opinion was: “The history of HR outsourcing (HRO) industry can be traced back to more than five decades, when ADP (Automatic Data Processing) set up its payroll processing services in the US. Today, the company has annual revenues of $7 billion and 40,000 associates.” While I actually can’t dispute this, I thought it was interesting that anyone looks back 50 years to find the roots of HRO. It is true that most HRO is payroll and beneftis centric, a space that ADP dominates alongside Hewitt.

Here’s my opinion: HRO is really no more than a decade old. Sure ADP set up transactional payroll processing 56 years ago, but the transactional support combined with technology and employee call center is relatively new. More appropriately put, HRO is the newest evolution in employee centric services and outsourcing. Well, it’s just a name anyway.

Tagged in :

systematicHR Avatar