{"id":646,"date":"2007-01-10T01:00:26","date_gmt":"2007-01-10T09:00:26","guid":{"rendered":"https:\/\/systematichr.com\/?p=646"},"modified":"2007-01-10T01:00:26","modified_gmt":"2007-01-10T09:00:26","slug":"hro-profits-or-business-model","status":"publish","type":"post","link":"https:\/\/systematichr.com\/?p=646","title":{"rendered":"HRO: Profits, or Business Model?"},"content":{"rendered":"

Jason asks<\/a> if we can just get past the HRO profit (loss) thing.\u00a0\u00a0 I think he\u2019s right.\u00a0 What\u2019s important in the equation is not if the HRO\u2019s are making money or not (and chances are that none of them are), but how the financials are affecting the shaping of their businesses.\u00a0 Instead of focusing on profits, Jason asks us to focus on other questions:<\/p>\n

Vendor viability should be gaged by many other factors besides profitability.\u00a0 How is the vendor investing in the business compared to their peers?\u00a0 What is the vendors current and planned capacity?\u00a0 How is the vendor viewed in terms of customer satisfaction and responsiveness?\u00a0 What is their view and track record on service quality and support?\u00a0 What is the knowledge and stability of the management team? How is the vendor viewed in the market?\u00a0 What are the vendors change management capabilities?\u00a0\u00a0 ((Corsello, Jason.\u00a0 December 20, 2006.\u00a0 \u201cCan We Move Beyond \u2018HRO Vendors Aren\u2019t Making Money?\u2019\u201d\u00a0 Retrieved from http:\/\/jasoncorsello.blogs.com\/ on December 28, 2006.))<\/p>\n

I\u2019d like to add one other question, not from a vendor standpoint, but from an industry view.\u00a0 If the major players can\u2019t make money, and its probably that other vendors are also in the same boat, what does this mean for the HRO business model?\u00a0 Here are my set of questions for the industry:<\/p>\n