Outsourcing: an ‘accelerator’ for companies’ transformation?

The context for companies is changing and there are currently three new key developments.

Companies are now investing more in services in addition to their solutions. They are thus trying to focus on their core business and their expertise. Legislation is becoming increasingly more complex and is changing rapidly. HR in France has recently had to deal with the “Déclaration Sociale Nominative” and is currently working on setting up withholding, though the deadline is now later. Aside from the administrative aspects, these projects require expertise on how to handle such special cases.

Employees work methods have also changed. Employees today want their company to provide them with new modes of communication and information that can be accessed on any device, to promote loyalty and the user experience. They want personalized areas, that take into account their professional wishes and their need for a balance between their private and professional lives.  Companies therefore now need to be able to handle an increasing number of interactions and more data.  The urbanization of information systems is also a complex challenge.

In addition, HR solutions are becoming hybrid and companies must ensure interoperability between the old and new applications. Within such a context, HR outsourcing, SaaS and Software as a Service are popular choices. This trend has been on the rise over the past 5 years. Between 2016 and 2018, annual growth has increased by 17.9% (Source Markess) and 42% of companies are outsourcing applications and/or infrastructures.

Outsourcing: a key to managing complexity

The use of SaaS solutions provided remotely by a provider and accessible via the Web is becoming commonplace, because they make it easy for companies to implement new practices since services are easily accessible and simple to use. SaaS solutions allow you to delegate the maintenance, operation and hosting of applications. They also help to reduce costs, thanks to industrialization and sharing.

Constant innovation and optimization provides the ability to offer new high-value services, in particular by integrating innovative applications.

HR outsourcing also enables a company to assist a customer undergoing an HR transformation process. This requires a close working relationship between the company and the service provider. In such a context, total or partial outsourcing of certain HR areas may be especially useful. This is known as BPO or Business Process Outsourcing. The service provider will be in charge of managing the services in the HR scope selected. There has been increased interest for this type of outsourcing in the past 3 years.