Issue link: https://www.e-digitaleditions.com/i/73199
HROA Report multinationals in a centre of excellence (CoE). The savvy companies are starting to see the value of integrating services and discovering what extra you get when putting them together. Many are using integrated framework and global business service as a vehicle to request and secure the pounds, euros, and dollars to get additional funding for selling, general, and administrative (SG&A) expenses. They want vehicles that are built for them, not being tied to something that has worked somewhere else and exported to them. Sourcing plays an enormous part in this—on average half of SG&A is outsourced—not just pan-HR, but also encompassing finance, procurement, facilities, real estate, IT, data, mergers and acquisitions, and more. In other words, we're often looking at business significantly larger than HR. Which leads to a challenge. The most likely function to fall out of a global business service is HR, as it doesn't lend itself to being a procedure, given that people and talent are involved. Of the overall business services, IT is likely to be 55 per cent of the CoE and HR a paltry 5 per cent. On the pendulum swing, HR is also the second most likely to be in the global business service. So here's the exciting point. HR has to focus on, and position itself as, the controller of the interlinks between HR data (payroll, joiners, movers, and leavers) and its impact on the general ledger. That way, it remains a player not just in the global business service but ups its game in the overall corporate strategy. And after a period that for some has left them unsure of their role, this is where the advisors will play a significant part. Their role has changed considerably in the last 12 months, from transaction-based assessment to strategic direction. It's not possible to just role a model out there—it needs to be the best-BPO for the company, and lessons will be learnt not just in Europe but also in APAC. So for where does that leave us in the near future? • HR outsourcing remains a serious, and growing, long-term business imperative. • A measured response to a slow market where cost remains the key issue and models need to change. • HR has to challenge itself to be much more strategic and push for the right business decisions. Analytics and end-to-end integration of core HR and talent tops the list of importance. (A recent survey of 512 HR executives, IDC found that SaaS is not as important to them as things like analytics and end- to-end integration of core HR and talent. HR buyers indicate that end-to-end integration is over 4 on a 5-point scale of importance.) • Data integration and service integration are very important to HR execs, so while we see the rise of single-tower or point solutions (RPO, learning, benefits, payroll, etc.), the executives know they need help to tie it all together. The learning curve is still growing, and the better practices must be communicated for the market to continue to shape itself. 2012 is about riding the storm, thinking laterally, and being proud to share what has worked and not worked. From that, a new breed of deals will emerge that will propel all sizes of companies to a more results-led HR department. Are You Exceptional? Industry luminaries came together at the HRO Today Forum APAC in Singapore for a lively evening of industry recognition. The HROA awards program is one of the activities held each year by the association to recognize and promote its vision and mission. With a theme of Be Exceptional, two awards were presented by HROA APAC board members Neil Jones of Adecco Solutions and Latifah Daud of Honeywell. The HROA would like to congratulate the following winners: APAC Thought Leader of the Year: Martin Cerullo, Alexander Mann Solutions APAC Customer Relationship of the Year: IBM and Cartus and Procter & Gamble The North American Awards for 2012 were recognized at the HRO Today Forum in May. The winners include: North America Customer Relationship of the Year: NorthgateArinso and Fifth Third Bank North America Recruitment Customer Relationship of the Year: Pinstripe, Inc. and ValueOptions HROA Trustee Global Customer Relationship of the Year: ISG and Aon Hewitt and Bank of America HROA Trustee Global Recruitment Customer Relationship of the Year: KellyOCG and General Electric HROA Trustee Global Provider Executive of the Year: Cynthia Crose, IBM HROA Trustee Global Buyer Executive of the Year: Chris Payton, Bank of America HROA Trustee Global Thought Leader of the Year: Mike Ettling, NorthgateArinso Global HRO Technology Innovation: Evolv, Inc. The announcement of the European award winners will take place at the HRO Today Forum Europe on November 13 in Dublin. [22] HRO TODAY GLOBAL | SPRING 2012