Outsourcing / insourcing

Are you constantly challenged to improve the efficiency of your HR processes and systems? Are you spending too much time on the operational side of HR rather than the more strategic part of your role? Are you under pressure to reduce your HR costs whilst introducing state of the art systems for your employees?

If so, then strategic HR outsourcing could be your answer. Strategic HR outsourcing is the selective outsourcing of HR processes and services – including shared service centres.

Or perhaps you’re tried outsourcing and it’s not been the right solution for you? Then perhaps you need to take a strategic view on switching to a new supplier or ‘insourcing’ instead.

Either way, the essential thing is to take a genuinely strategic approach.

When engaging on an outsourcing or insourcing programme, be that in HR, Finance or IT, the following factors are key:
The objectives required from the outsourcing / insourcing) must be crystal clear and measurable so:

  • It is essential to be clear on the compelling reason for the change.
  • Both your business and your suppliers must agree what success looks like.

The scope of the activity needs to be clearly articulated to enable:

  • The identification of any people issues relating to the roles in scope – such as special terms and conditions, liabilities (such as current disciplinary proceedings) and pension arrangements.
  • A comprehensive understanding of costs.
  • Any legal requirements to be identified, such as how the Transfer of Undertakings (Protection of Employment) Regulations might apply.

Good and honest communication with both employees and the management is key to:

  • Helping employees through the emotional journey of being outsourced.
  • Ensuring full management understanding and support for the change, especially as any change often results in an initial dip in service levels.

Being ready to manage the new service before any outsourcing deal is done as:

  • It may require you to recruit specialist skills.
  • The service level agreements (SLA), which contractually detail the service and its measures, must be agreed and put in place as part of the deal – not as an afterthought.
  • Remaining employees must embrace the new structure, as well as the new operating model and their roles within it.

How can we help you?
We can help you in many ways, such as:

  • Planning and preparing to outsource/insource so that you are ready to go.
  • Gathering the employee information together for the outsourcing provider (or for you if you are insourcing).
  • Planning and delivering communications to your employees and employee representatives, as well as preparing managers and HR to handle group and individual communication.
  • Setting requirements and reviewing the proposed SLA to ensure it meets your needs.
  • Establishing a new service culture and the future structure of your organisation.


Our thanks to Janet for writing this page.

For a no-obligation discussion about how our employee relations support services could help your organisation, please just give us a call on 01582 463462 and we’ll happily put you in touch with a consultant, so that you can discuss it directly with them.