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HROTG_Summer_2012

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MSP Gate By Drew Dix At HRO Today's most recent European Forum, Randstad Sourceright U.K. Director Seb O'Connell presented a contrast between clients' expectations and their actual experience as a result of an engagement in a managed service programme (MSP). Randstad's research sought to collect real data and measure what the true benefits were of an MSP as against an individual client's perception. At the outset, O'Connell explained that, at the top level of corporate management, the most important aspects of an MSP to a firm are what benefits they were actually expecting to receive. That would then be compared with their review of the process and an evaluation of real results. Randstad hired a third-party consulting firm to conduct a confidential survey of 170 companies. Firms ranged across a variety of different industry sectors—each with an MSP in different stages of its managed services solution. At the beginning of the research, each company was asked a trio of questions: • What were the expected benefits anticipated from your managed service programme? • What did you actually realise? • Are you glad you did it? The firms' responses were consistent. Expectation of benefits focussed on the common denominators of controlling costs (in both personnel and administrative categories), visibility, and transparency. In almost all cases, the perception was that these goals were indeed being realised. This, in turn, meant that the satisfaction level with choosing the MSP process at the outset was universally high. However, Randstad then conducted a closer data analysis, including four key areas. Those included reduction of costs, simplification of administration, improvement in human resources productivity, and overall program visibility. The result: Actual benefits came in at as much as 14 per cent below clients' original expectations. When presented with these findings, the companies were asked to consider what they could have done more effectively during the programme. Options included selection of a different provider, inclusion of more robust technology, or allotment of a longer time frame. The vast majority of respondents concluded that in any next round of pursuing such services they would begin by investing significantly more time in establishing realistic expectations before going "live." That would mean time spent both internally and with potential providers. The moral of this story: There are no shortcuts. Expectations A presentation on the difference between hope and reality in gauging the effectiveness of managed service programmes. Seb O' Connell, U.K. director, Randstad Sourceright SUMMER 2012 | www.hroglobal.com [41]

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