How to Kill HRO

How to Kill HRO

By SAP AG

It is becoming increasingly apparent to the general public that the old "lift & shift" approach to Human Resources Outsourcing (HRO) is a perilous game. While many people might intuitively understand that "your mess for less" is difficult for providers, few seem to have understood how to solve the problem.

One option is to let much of the HRO market die. This would certainly find its supporters, but it would also be disappointing for management as a science - and it is unlikely to kill HRO forever anyway. The HR director, CFO and ultimately the board need HR to become leaner and meaner. Outsourcing is just a means to get there. When we assume that HR O is a useful management practice, then a good start towards solving its illnesses is to look at the business core of the problem - which is NOT how to negotiate HRO contracts. It is about being able to run excellent HR operations.

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