From: Hewitt resource library
In light of uncertainty in the software marketplace, many companies are concerned about their investments in enterprise resource planning (ERP) systems and are not only wondering what software providers will be around for the long-term but are also evaluating their options. Through outsourcing, companies can get rid of the expense, headache, uncertainty, and risk of managing their own ERP system and relying on software providers. They can also transfer the risks and responsibilities to an outsourcing provider.
Over the last 20 years, the HR outsourcing marketplace has evolved beyond benefits administration. Companies are outsourcing more HR activities to achieve a fundamental shift from an administrative, tactical, and compliance-driven function to a focus on the strategic acquisition, motivation, and retention of talent. The transactional functions must be done right and can be handled with greater quality and efficiency by a provider who has the process and technology expertise.
Outsourcing has become a mainstream business practice. A growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognize outsourcing relationships as long-term partnerships created to further the strategic goals of the organization. Today, companies want to build an internal competency around outsourcing so that they can work with partners to build the kind of responsive business ecosystem they need to compete.
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