Morgan Lewis

Human Resources Outsourcing

Related Publications

12/14/06 Overview of Human Resource Issues and Trends in the Retail Industry
11/01/06 HRO and Adapting to Change, presented at the Human Impact of Outsourcing Symposium, The Wharton School, University of Pennsylvania, Philadelphia
09/20/05 How to Integrate Your External and Internal Legal and Consulting Resources, presented at the 2005 Human Resources Outsourcing Conference, Chicago
View all publications

Human Resource Outsourcing (HRO) often combines elements common to the other outsourcing disciplines. Heavily process dependent, HRO is clearly a BPO, yet there is very often a highly customized information technology component as well. There are substantial legal considerations, and at the heart of a human resources outsourcing is the production input that the business cares most about: its employees.

Like most outsourcings, its success or failure will depend upon achieving sustainable cost savings and efficiencies. Also like most outsourcings, special attention must be paid to customer-facing services. In this case, however, the "customers" are employees, and a failed HRO will affect those employees for a long time, in personal ways.

From the business's perspective, the benefits of the HRO must be measurable and consistent with the objectives sought in choosing to outsource these functions. It is fair to say that in many ways HRO magnifies the good attributes of BPO and intensifies the risks and pitfalls.

Getting an HRO right requires teamwork, clearly defined business objectives, a well-developed base case, and a good understanding of your suppliers' offering. Morgan Lewis can help your team get there.

Because we have been key players in some of the most innovative outsourcings in the industry, we understand the power of ideas. We understand the components of a successful long term outsourcing, and, more importantly, we know how to help our clients achieve these goals.

We also understand that every client is different, that every corporate culture is different, and that every outsourcing relationship is different. And it is in these differences that opportunity exists.

By embracing a number of ideals including: a deal culture that encourages learning from your suppliers as the deal progresses; adjusting requirements as opportunities present themselves; and allowing your suppliers to participate in a process that allows them to present positive differentiators, we will help you to develop the best outsourcing relationship possible. Such relationships allow you to achieve your objectives and have a contract at the end that will not go into a drawer, but will be the living, breathing embodiment of a productive dialogue, and represent the basis of your outsourcing relationship.