Onward and Upward for HRO in 2013

Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Each year, the NelsonHall HRO team is asked by HRO Today to make predictions for the year ahead. Here is a summary of our featured article, Onward and Upward to kick off our 2013 blog series.

HRO is reaching maturity

There is a growing level of acceptance with less perceived risk in making the HRO decision; value is balancing the focus on cost, and pent-up technology needs will be opening the door to new service provider opportunities.

  • Value and cost are reaching parity for many buyers that want agile new HR capabilities that produce results, including the ability to measure and manage HR issues across the enterprise as well as improve the employee experience
  • The need for core HRMS upgrades and new technology should reach the point of increased budgeted spend; be ready to discuss whether upgraded and bolt-on additions versus a new core HRMS is the better path for increasing business impact and the total cost of ownership.

Breakthrough HR technology for 2013: cloud-based SaaS

Major technology costs will open the door wider for SaaS. As SaaS offerings move “up-stack,” the ecosystem for SaaS support will continue to develop in 2013 via consulting, implementations, integrations, BPO, etc.

  • SaaS HRMS adoption will continue to move fastest for mid-market organizations
  • Expect little large market HR ERP near-term erosion from SaaS HRMS; but cloud-based SaaS HR platforms are disruptive technologies that will quickly move up the value chain and be able to serve larger and more complex organizations
  • Total cost analysis, not just system costs, will be important in the adoption of SaaS HRMS in larger organizations; over time, the ERP per user pricing advantage will disappear, especially if evidence continues to mount of better performance and lower overall costs.

Emerging HR technologies: social media and HR analytics

There is increased interest in how to deploy the newer tools strategically. Look for adoption to slowly build as clients need a certain level of maturity in systems, services, and vision to create real value with the newer HR technologies.

The word for 2013: convergence

It may be a bit early to pick a HRO word of the year, but I think convergence will be a good candidate to cover changing client needs and new and emerging technologies.

Where, when, and how do we bring together the old and the new to create new synergistic capabilities? What can we do with a fully-integrated HRMS with HR analytics? How can we change the delivery of services with strategically deployed social media? Can we bring new magic to the employee experience with mobility and social tools?

As choices increase and grow more complex, confusion and inaction may result. With clear purpose, planning, and great advice and counsel the opportunity is before us all to create a real breakthrough year for HR and HRO in 2013.

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Explore posts in the same categories: Business Process Outsourcing, Development Opportunities, HR, HR BPO, hr outsourcing, HR Technology, hro, HRO Services, HRO Today

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