London, U.K., -- Rachel Anderson, Senior Consultant and Payroll Outsourcing specialist at Alsbridge, has released an article that will shed light on why the Outsourcing Industry in Europe has recently seen several large payroll deals in difficulties.
In the article, Rachel Anderson tackles the reasons why payroll outsourcing is different from other functions in F&A and HR where the number of outsourcing success stories grows on a daily basis. In doing so, she reveals why the major outsourcing firms are struggling to deliver payroll services, while smaller companies have been doing this successfully for years.
Rachel Anderson comments: “one of the key reasons is that the bigger outsourcing suppliers are seeking to commoditize payroll services in the same way as simpler, more standardized processes." This, she claims, has in the past led to several misjudgments in setting up payroll outsourcing contracts.
Her article cites ‘not enough time given to the knowledge transfer’, ‘sub-optimal hiring profile’ and ‘overly optimistic expectations of efficiencies’ as the main misjudgments that have led to increasing pressure on delivery organizations.
Addressing what can be done to ensure a successful payroll outsourcing deal, Rachel Anderson affirms that when suppliers and their clients work closely together with a mutual aim of success, a quality, cost effective deal can result: “payroll is varied and complex so it is much harder to drive out costs. It can be successfully outsourced, but suppliers must be prepared to adapt their delivery models.”