Issue link: https://www.e-digitaleditions.com/i/138053
Market Report While the HRO industry has been intensely focused on developing the tools for identifying and managing enterprise talent, we have neglected to develop the skills and capabilities of the people responsible for implementing HRO engagements. and managing HRO engagements. This is the key finding in a enterprises seem trapped in a "talent paradox" and suggests recent report from HfS Research, Is Good Enough Really Good steps that governance leaders can take to better manage their Enough? The Great Talent Paradox in Outsourcing. In the people outsourcing relationships for strategic and sustainable value. + process + technology = business transformation equation, talent seems to end up in last place in terms of establishing and managing outsourcing relationships. Consider these findings: • At a time when advanced outsourcing initiatives offer The report points to alarming shortfalls in the investments companies business value in their outsourcing relationships, organizations are willing to make in developing the people two-thirds of all enterprise outsourcing buyers fail to achieve responsible for managing outsourcing relationships. According any value beyond cost reduction and efficiency. This "lights on" to the research, barely one-fourth of enterprise buyers make approach is preventing many enterprises from achieving greater formal investments in training and developing their outsourcing business value from these relationships. management staff in areas that are strategic to their business. Moreover, the shortfall coincides with a dramatic shift in the value proposition for business process outsourcing (BPO), from cost savings to business outcomes, and with the increasing adoption of outsourcing in middle- and front-office settings that serve customers directly. • Companies are surprisingly insecure about the quality of their talent. Barely one-third of enterprise outsource buyers believe their talent responsible for managing the service relationship have above average analytical skills or the ability to drive innovation and define business outcomes beyond cost and efficiency. The HfS research—based on a survey of 282 major enterprises • Despite widespread awareness that their outsourcing engaged in outsourcing, as well as qualitative interviews management teams lack this expertise, and despite difficulty with buyers and providers—examines why many of today's leading in recruiting the needed skills, few organizations are investing [12] HRO TODAY MAGAZINE | JUNE 2013