Chicago, Ill. -- This week, Aon Human Resources Outsourcing (HRO), a division of Aon Consulting, Inc., and The Outsourcing Institute (OI) launched an innovative HR-related Internet site designed to help corporate and HR executives make strategic decisions about the best way to approach and manage human resource outsourcing initiatives.
Already, HR outsourcing is a more than $25.5 billion industry, according to the research firm Gartner, Inc. By 2005, it is expected that 85 percent of U.S. enterprises will outsource at least one component of their HR function.
"This site goes beyond the provision of generic outsourcing information by addressing the unique challenges of human resources outsourcing, currently the fastest growing market segment on the OI network," says Frank Casale, Founder and Chief Executive Officer of The Outsourcing Institute. "We are pleased to partner with Aon HRO in launching this site, and we believe it will become a key resource for companies looking to outsource human resource functions."
According to Aon HRO and OI, the outsourcing process can be divided into four primary phases: assessment, request for proposal, vendor selection, and governance. The Aon HRO site explores each phase, illustrating the optimal steps to take during the entire four-phase process.
"We understand that HR outsourcing enables organizations to realize significant cost savings and operational efficiencies. However, we also believe that outsourcing's greatest value lies in its ability to create a more effective, engaged and dynamic workforce," says Gary Budzinski, President of Aon Human Resources Outsourcing. "To create that paradigm, careful planning and understanding of the process is required, not only in the beginning of the process, but during each phase and after implementation. We believe this site will help companies understand and eventually realize the competitive advantages that can be attained by effectively outsourcing HR."
It is essential that any company considering HRO conduct a thorough business case analysis to ensure that it is the right choice for helping the company achieve its strategic goals in the most efficient and effective way possible. Additionally, the vendor selection process must involve the key executives who will be most affected by the decision to outsource. Plans should be established to measure the effectiveness of the HRO project, and a clear strategy should be developed to take full advantage of the new HR environment that will result from outsourcing.
"HRO goes well beyond cost savings - it delivers strategic value to organizations by enabling HR executives to focus on allocating workforce resources in order to achieve business objectives. Once they are freed from administrative tasks, executives can more effectively develop and align HR programs with the strategic goals of the organization in mind," says Casale.
Because HRO buyers need specific, useful, timely information, the Aon HRO site includes articles, studies, FAQs, and access to experts, tools, tips and trends. The site will focus on education and information for those exploring HRO. Current articles featured on the Aon HRO portal include: "Honesty is the Best Assessment Policy;" "Crafting the Ideal RFP;" "Article: Selective Service;" and "The Seven Rules for Managing the Outsourcing Relationship."
"More effective human capital is the essential ingredient to achieving competitive advantage. It is evidenced by capable, committed employees who learn faster, produce more, satisfy more customers, and adjust to change and contribute to innovation. It is also evidenced by proficient managers who manage people and resources effectively, and leaders with the vision, talent and ability to motivate people to embrace and execute change," says Budzinski.