HR Outsourcing Preparation

The outsourcing provider is not responsible for anything, generally. All the important tasks have to be conducted by the HR Team preparing the whole outsourcing exercise. The HR Team is responsible for a good description of the outsourced HR Process and it is responsible for a good definition of the outsourcing contract.

The HR Team has to describe the end-to-end HR Process and the specification of the main inputs and outputs. It is the easiest part of the whole outsourcing procedure as the HR Team has to decide, where the final cuts in the HR Process will be made. Who will own each of the process steps and how the communication will be done.

The outsourcing provider cannot play a significant part in this design as the outsourcing provider can make the description a bit unclear as it can be solved later. There is no “any later” for the outsourcing procedure. Everything has to be clearly decided and the lawyers have to prepare a detailed outsourcing contract describing everything in a detail.

The HR Team has to set strict time limits for both partners as the outsourcing partner can make a good planning procedure and can adapt the systems to handle another company. The outsourcing partner never serves a single company, the outsourcing is based on providing the same services to many companies and utilizing the staff to 100%.

The HR Team is responsible for the successful outsourcing. The outsourcing provider can help a lot, but the HR Team sets the rules of the game, the cost and the conditions to be met by both partners. The HR Team has to prepare all the details and the outsourcing partner can comment, but the outsourcing partner cannot set the rules of the whole game.