The New Era Of Outsourcing: Why Web-Based Human Resources Has Come Of Age

By: Fenil Shah
Submitted: 2007-01-17 15:33:59
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

  • Application service providers offer a type of outsourcing that increasingly answers requirements to control and secure company data while experiencing, the convenience of minimal technical overhead.
  • The hosted model allows a company to outsource the maintenance and overhead of a technology platform and software, yet maintain full control over the sensitive data and management of the process.
  • According to research by Price-Waterhouse Coopers, "Total Cost of Ownership: Warning Signs of Hidden In House System Costs," companies can shave up to 80 percent of the time it takes to complete payroll simply by automating the process.


    • Qutsource or insource? It has never been an easy question to answer. HR directors love the security of running their systems in-house, and yet the expenses of maintaining the infrastructure, licenses and technical staff are often prohibitive. Yet with traditional outsourcing, the potential lack of control can be a concern. In addition, many more traditional HR practitioners are becoming more of a key element in the business and total rewards strategies. This allows little time for getting involved in the day-to-day administrative functions. While outsourcing may not be the solution for all companies, this article provides information on its potentially cost-saving and time-saving benefits.
    Application service providers offer a type of outsourcing that increasingly answers requirements to control and secure company data while experiencing the convenience of minimal technical overhead. According to the Nov. 4, 2004, Forrester Research report, "Trends 2005: HR Management Systems" by Paul Hamerman, Web hosted HR applications are becoming more popular because the hosting model is simply more cost-effective.

    Why Go to the Web?
    When several companies are using the same infrastructure - provided by the application service provider (ASP) - economies of scale extend the promise of the best and most robust systems at the lowest price point to each individual client company. Hosted applications provide a blended model that captures the best of in-house HR administration with the best of outsourced HR administration. The hosted model allows a company to outsource the maintenance and overhead of a technology platform and software, yet maintain full control over the sensitive data and management of the process.

    Easier to Expand
    Fast-growing, Wisconsin-based Paragon, which helps companies with their IT needs, and SRP Federal Credit Union, based in South Carolina, froze the number of people in their HR departments despite adding 70 and 125 employees, respectively. That's an annual savings for each of $45,000 to $65,000 in salary savings by outsourcing several HR functions. Additionally, these firms are seeing significant return on investment (RO!) from automated time collection. According to the 2003 Price Water house- Coopers report, "Total Cost of Ownership: Warning Signs of Hidden In House System Costs," companies can shave up to 80 percent of the time it takes to complete payroll simply by automating the process. Those with 500 employees can save $2,600 per pay period by moving to an electronic system, according to figures compiled by iEmployee in the 2005 white paper "Online Pay Stubs." "We have a heavy workload, but it's not overwhelming," said Valerie Comparetta, an HR specialist for SRP

    ABOUT THE AUTHOR:
    Fenil Shah is CEO at iEmployee, which offers Web-hosted HR applications. Shah can be reached at Fshah@iemployee.com. Or Human Resource Workforce Management Solution

    Article source: Expert Articles

    Most Recent Articles in Management category

    • Employee involvement - By: john david
      Employee involvement involves the creation of an environment wherein people are involved in the decision making process that have an impact on the decisions and the actions that have a bearing on the jobs.
    • Work from Home Based Business With 7 Secrets of Internet Millionaires - By: Gagan kainth
      The external and internal secrets of Internet millionaires are explored. Find out what the Internet millionaires know that has made them so successful.
    • The Top 10 Questions to Ask Your Community Association Management Company - By: James Small
      Throughout the industry, HOA Management Companies overload their community managers by giving them too many homeowners associations to manage
    • Things to think about before hiring an accountant - By: Michiel Van Kets
      Locating a good honest accountant is not as simple as you would think. The majority of us looks in a local directory and chooses the first one who answers the phone.
    • A Chartered Accountant Can Help You In Many Ways - By: Michiel Van Kets
      The function of a chartered accountant can be intricate to understand, the majority just associates them with tax returns.
    • Considerable Factors involved in Product Creation & Marketing - By: Kamal Kant Gupta
      The niche you have chosen should allow creation of more than one product or service. With the technological advancements in the hosting industry, from automated control panels and scripts that simplify creation of accounts, to complete turnkey solutions; there is no need to worry about spending time on the real products sold to the customer.
    • No One Wants To Hear They Have An Ugly Baby - By: Rene Jones
      It's time to admit you have an, "Ugly Baby!" Or, in distribution terminology, "Admit your warehouse is in shambles!" If your warehouse has returns that sit around for days without being processed, "Your warehouse is in shambles." If your warehouse has receiving that does not get received for days, then once it is received it sits again before it is put away, "Your warehouse is in shambles!" If your customer service personnel spend more time in the warehouse checking stock, because your inventory is so inaccurate, "Your warehouse is in shambles!"
    • Make your Sales Team the Best with Excellent Sales Training - By: John McLean
      An article that shows you how to get the best sales team with the best training courses
    • Highlighting The Benefits Of Project Management Training - By: Gurinder Singh
      Project management is one of the important processes of an organization for the simple reason that it answers a lot of your questions and adds order to the company. With this, project management training is important to ensure that you have the right skills and knowledge when it comes to doing project management.
    • Benefits of Management are Essential for Business - By: Avesh Dahiya
      During the implementation of project, the benefits manager has to check whether the benefits are being achieved within the specified time frame. Therefore helps the management in selecting the right projects.