Total Benefits Outsourcing – Assessing the Impact on Employees, Administration and the Bottom Line

IBM Case Study – How Outsourcing HR Administration and Payroll Services Is Integral to IBM's Business Strategy

HR needs to get out of the transaction business and focus on attracting, retaining and motivating talent. 85% of companies who outsource human resources administration have become more profitable (source: PricewaterhouseCoopers). The decision has proven to be a smart, logical business move for IBM -- one that allows the company to deliver and even expand needed HR support services. The arrangement ensures that IBM benefits from the operational efficiencies inherent in outsourcing, while continuing to maintain quality service. At the same time, the company is able to focus its HR resources and capital investments on those strategic areas most critical to its business success.

• The legal and financial implications of outsourcing
• How to ensure top quality service, seamless transition and transparent impact to employees
• How to leverage a provider's scale and core expertise, instead of bearing the cost of services and technology changes on your own

Randy MacDonald, Senior Vice President, Human Resources, IBM

International Paper's Outsourcing Strategy, Metrics and Results Achieved to Date
A key goal of International Paper's HR Strategy is to execute an effective service delivery model. Recognizing the value of an organization whose core competency is service delivery, International Paper elected to move its HR administrative processes to an outsourcing firm in a 10-year relationship from January 2002 through December 2011.

• Managing a third party provider and its processes
• Ensuring effective metrics and measurement process e.g. call abandonment rate, calls answered in a specified time, case escalations, time to respond, time to close and error rates
• Change management strategies to transition field HR to a shared service center to a BPO firm
• Recognizing the level of change management required by the workforce
• Driving the value of employee self-service

Jerry Carter, Senior Vice President, Human Resources, International Paper