Monday, 22 August 2011

Bonanza for Outsourcers?

Recent UK Government initiatives like RTI and Pensions Auto-Enrolment, coupled with a gathering momentum in US HR thinking (which tends to arrive here 12-18 months later) is leading me to see a potential future in which a much higher portion of Pension and Payroll Processing is outsourced.

The received wisdom in the US (and here) amongst many HR, finance and other business people seems to be that Payroll is not a function that has the potential to offer strategic advantage. It's a generic thing that can be done by outsiders without affecting the way the business operates or your "Employer Brand". I don't agree - but who cares what I think - that seems to be the way the wind is blowing.

Add to this the fact that in trying to simplify things, the Government is of course making them more complex, and you might forgive business people for running into the open arms of the outsourcers.

I hope I'm wrong about this - and I would encourage any organisation thinking of outsourcing to be very cautious and thorough as I've seen some examples where it didn't provide any of the intended benefits - but I can see a move to outsourcers in the future.

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