The HRO Benchmark Report

This study, conducted by AberdeenGroup in partnership with Outsourcing Today publications, reports 107 companies' responses to an online survey, created to gather benchmark information.

The concept of outsourcing all of a corporation's human capital management needs has yet to, and may never, reach full acceptance, yet continues to receive significant market attention. This attention has lead to the creation of many companies offering human capital management (HCM) services. This report is centered on several tenets:

• The human resources (HR) function is not core to a corporation's business objectives; it does not directly generate revenue.
• Companies that provide HR can create an economy of scale, focusing effort on administrative tasks that are very costly for the corporation. Thus, they support a less expensive option for corporations. The growth of offshore call centers and data management facilities are key examples of this economy.
• Improved service may be available to corporations, as HRO providers can hire
  better specialists than the enterprise itself, especially mid-size enterprises.

Today, the key strategies behind HRO are cost reduction (69%), enhancing a corporation's ability to focus on its core business objectives (63%), and improved enduser service (Figure 1). Respondents chose these as their imperatives from a selection of ten, hence the lower percentages. Corporations noted that they often use multiple outsourcers; one company reported that it had between 1 and 12 companies to which HR
areas were outsourced.


aberdeen_hro_benchmark_report.pdf (603 Kb)