Casually leafing through some older articles on last year’s Outsourcing Industry reports inspired me to put pen to paper (or rather fingers to keys).
2015 was a great year for outsourcing of HR functions. According to the Quarterly Outsourcing Index, carried out by industry analyst Nelson Hall, total UK HR outsourcing spend in the first three-quarters of 2015 alone was 50% up on the value of deals signed in the whole of 2014.
HR's share of all UK outsourcing in 2015 provided a very healthy picture of the state of the industry. Almost a quarter (24%) of all outsourcing deals signed between January and September 2015 were HR contracts. Demonstrating growth in the sector but also the importance of the recruitment and HR function.
There are probably many reasons for this. I think the top three are:-
1 - A desire for greater reach and speed – You want a partner with excellent reach to find the right candidates quickly – but no shortcuts!
2 - Need for better peer profiling – You want candidates profiling by subject matter experts. Someone who has performed the role you are looking to fill is the best person to recruit someone to deliver in that role. That means a Project Manager interviewing a Project Manager, and a Sales Director interviewing for a sales role.
3 - Commercial Simplicity - You want a simple and fair commercial model, even sharing risk with your partner. Partners confident in finding you the right candidate will even let you spread payments over the first year of their employment.
If you are considering moving your IT recruitment 'out of house', there are huge benefits to be gained, not least the three mentioned above but there is one golden rule I would advise you to never, ever, break.
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