The results of an independently conducted study on outsourcing trends in the public sector show that shared services and outsourcing are effective tools for HR transformation and improvement in public sector agencies, yet these services have traditionally been overlooked or underutilized.
According to the study, conducted by the , outsourcing is beginning to gain ground in the public sector. Fifty-five percent of survey respondents reported using full or partial shared services solutions, and 17% now outsource some HR-related functions.
While this is positive momentum, public sector HR professionals still face hurdles in marshaling the internal resources and organizational support to build a case for changes. Many HR departments are straining to overcome burdens caused by legacy systems, paper-based processes and recruitment challenges. This research shows that outsourcing could allow HR staff to move away from transactional activities to manage long-term planning, performance monitoring, innovation and improvement in taxpayer services.
Government and other not-for-profit organizations' HR decision makers are encouraged to make the time and effort to understand the comparative benefits of alternative service delivery models. Because of the extraordinary budgetary and staffing challenges facing public sector organizations today, HR professionals should take a serious look at shared services and outsourcing, especially given the benefits and improvements being reported by organizations already employing these models.
Source(s): International Public Management Association for Human Resources (IPMA-HR), EquaTerra, ADP