Issue link: http://www.e-digitaleditions.com/i/124894
Payroll Still, the sheer promise of multi-country payroll outsourcing is such that it remains a very popular initiative for HR professionals, despite the potential pushback by clients. Making it happen on a broader scale might require small steps before giant leaps, Fernandez suggests. "To bring order to the chaos . . . does not necessarily mean there needs to be a single, global payroll provider," she said. "There is value to really parsing out [service] across the globe, either at the regional level or a few countries." To get to this point requires a thorough understanding of a potential client's geographic footprint, and what they are trying to solve from a payroll standpoint. The needs of a very large company in 80 countries with 30,000 employees scattered across the world obviously are quite different from those of a small company in eight countries with 3,000 employees. "Payroll outsourcing is not a one-size-fits-all solution," Fernandez argued. "Clients don't really realise that there are a number of different services or levels available." Another key concern in HR is the capabilities of the various providers they currently have across the planet, and the dynamics of how these entities might work together in a single, global payroll-outsourcing environment. "It's a very complex landscape that is far beyond what most payroll buyers are really able to sort through," explained Fernandez. "From a business case perspective, a lot of our clients really don't know how to begin the process of articulating, `What is it that I want to buy, what can I buy, what can I afford, and what's actionable?' They don't know where their actionable business case is." Whence the Business Case? Addressing such questions is important for clients, intermediaries such as ISG, and the provider universe—from larger payroll players such as ADP and NorthgateArinso that have broad reach, assets and solutions, to regional providers, and what Fernandez calls payroll aggregators— those providing a single touch point or interface for a client company [14] HRO TODAY GLOBAL | WINTER 2013 that serves as its central coordinator of payroll outsourcing services globally. By thinking deeply about these issues, providers can avoid the "RFI [request for information] madness—the fishing for a price expedition," Fernandez said. "I'm always intrigued when a client tells me `We sent a payroll RFI to 30 providers.' I think, 'Where the heck did you find 30 providers to do what you're asking them to do?' " Whilst these various provider concerns percolate, interest in multicountry outsourcing, as opposed to single country solutions, is heating up. Sige Marien, director of the multi-country business unit at provider SD Worx, said the firm has seen more completed deals in recent years than previously. He cites a 10 per cent increase in global payroll transactions with companies in Sweden, a 20 per cent to 30 per cent deal activity increase in Finland, and increases in Germany and Central and Eastern European countries, where SD Worx' clients are opening branches. David Woodward, chief innovation and product officer at provider Ceridian, agrees there is a trend toward multi-country payroll outsourcing growth. "It's an area where we're seeing a lot more interest, probably driven from businesses headquartered in the United States and in the United Kingdom, and to a certain degree Ireland, as well," he said. "Certainly, this a major strategic area of growth my organisation. It's a natural progression to say to a client you're serving in one of these major territories, `Why not actually provide these services now across the globe?' " The Early Mainstream Both Marien and Woodward also concurred that inquiries about multicountry outsourcing are rising, promising more growth ahead. As Marien put it, "There are more questions about who in the provider sphere can help them with their multi-country payroll problems."