I haven\u2019t written about HRO for a very long time.\u00a0 Part of it could be just my simple disillusionment of the space.\u00a0 The outsourcing of payroll and benefit transactions make total sense to me as they are complete commodities.\u00a0 If we talk about F&A (finance) the transactional side of procurement, AP and AR at the very least are all easily outsourced since once you have a process defined, the transactions are highly standardized.\u00a0 Not necessarily so with HR and specifically talent management.\u00a0 While it\u2019s easy to outsource the technology, the transactions require a bit of graceful flexibility if managing your talent also means engaging them.\u00a0 I\u2019m not advocating anarchy here, but rigid adherence to \u201cstandardized best practices\u201d may not meet that goal completely.<\/p>\n
It appears that HP is trying to keep up with the Joneses.\u00a0 IBM and Accenture have been marketing their broad scope of BPO services, although I would argue that Accenture might be ahead of IBM.\u00a0 The reality is that HP never had HR BPO, and so the acquisition seems to make good sense from a services perspective.\u00a0 ExcellerateHRO has a decent brand in the HRO space even though it\u2019s uncertain how many full service HRO clients they have won.\u00a0 Alternatively, EDS never seemed to make a strong push into the F&A outsourcing market which HP is significantly stronger in.<\/p>\n
The question really comes around the cultural fit.\u00a0 While I\u2019m not in a position to comment, reports are that the cultures are significantly different and any integration will require significant change management efforts for cultural integration.\u00a0 This seems like an effort that will not be easily or quickly performed.<\/p>\n
I don\u2019t see any reason at this point why there should be cause for concern at EHRO customers.\u00a0 It\u2019s not as if HP already had a large HRO business and will be moving customers to new platforms or service models.\u00a0 I\u2019m also making the assumption that HP is actually acquiring the EHRO business, but I suppose since it\u2019s a joint venture, perhaps that\u2019s more complicated than I realize.\u00a0 In general, EHRO customers may have more opportunities with the new HP, and as usual, I\u2019ll hedge with the \u201cwait and see\u201d statement.<\/p>\n","protected":false},"excerpt":{"rendered":"
I haven\u2019t written about HRO for a very long time.\u00a0 Part of it could be just my simple disillusionment of the space.\u00a0 The outsourcing of payroll and benefit transactions make total sense to me as they are complete commodities.\u00a0 If…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[17,43,22,3],"tags":[],"class_list":["post-908","post","type-post","status-publish","format-standard","hentry","category-hro","category-hro-vendors","category-industry-news","category-vendors"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/908","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=908"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/908\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=908"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=908"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=908"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}