Executives Turn Focus on Strategy in Human Resources Outsourcing

New Book Offers Critical, Step-by-Step Guide to Avoiding Obstacles associated with HRO and Sustaining Competitive Advantage

HOUSTON, June 19, 2006 — TPI Inc., the world’s leading advisor to global corporations on all facets of their service strategies for business support functions, today announced the availability of a new book, “Outsourcing Human Resources Functions: How, Why, When and When Not to Contract for HR Services.” The book, by Scott Gildner of TPI, Inc. and Mary Cook of Mary Cook & Associates, explores the potential obstacles businesses face in outsourcing their HR functions and offers positive solutions to achieve success. Executives make use of HR outsourcing as a way to direct management focus on larger, strategic concerns within their organizations.

“Successful organizations utilize the strengths of all employees,” said Susan R. Meisinger, SPHR, president and CEO of Society for Human Resource Management (SHRM). “Outsourcing some administrative HR responsibilities allows HR professionals to focus their time on strategic HR and exercise their strengths as business leaders in the organization.” Published by SHRM, the book offers a critical roadmap for executives considering or managing HR outsourcing relationships and the resulting organizational upheaval that any business transformation can bring.

According to a recent SHRM survey, businesses that outsource certain HR functions can benefit from potential cost savings and relinquished legal obligations, enabling their professionals to focus on strategic corporate issues. Some of these completely outsourced functions include background checks, employee assistance programs, the administration of flexible spending accounts and other administrative tasks. However, given that nearly 70 percent of businesses claimed they faced obstacles or had fears associated with the outsourcing process, there are critical factors that need to be carefully considered so that no part of the business is put at risk.

“Outsourcing HR is a highly complex endeavor for any size organization, and understanding the dynamics behind a successful outsourcing process is absolutely critical to capturing competitive advantage — the driving force behind most of today’s outsourcing decisions,” said Scott Gildner, TPI partner and managing director for Human Resources advisory services. “The question is no longer if your organization will consider outsourcing, but when.”

Thousands of organizations in both public and private sectors spend billions of dollars each year outsourcing HR functions, with much of the work going offshore beyond U.S. borders. Yet many corporations are struggling with the enormous complexities involved in outsourcing multiple functions, or even a single function — especially when technical service delivery is extended across the globe.

The book was written to empower HR professionals and corporate executives with practical tools to succeed in the significant organizational change resulting from HRO, which includes the realignment of relationships between HR, managers, employees and service providers involved in the process.

“Outsourcing Human Resources Functions” covers:

• The remedies to relieve an organization’s biggest headaches and concerns, with an easy, A to Z guide on how to approach each stage of the outsourcing maze;
• Outsourcing’s advantages and disadvantages relative to other strategies for improving HR service delivery;
• Functions that make good candidates for outsourcing versus those functions that should remain internal;
• How to effectively identify bidders and assess the proposals for an outsourcing transaction — before spending millions of dollars;
• How to expand sourcing management expertise — many outsourcing arrangements can fail or flounder if companies do not understand the value of governance and long-term third-party relationship management for success.

“Drawing on extensive experience and the ability to simplify complex issues, the authors offer sound, practical advice for using outsourcing to become more strategic, acquire technology and expertise, enhance services, and be more cost effective,” said Tom Burt, Vice President, Director HR Administration at JC Penney Company, Inc.

“Outsourcing Human Resources Functions” is currently available for purchase at SHRM’s online bookstore: https://shrmstore.shrm.org/.

The book will be available in bookstores nationwide in September, 2006.

About the Authors
Scott Gildner, an industry-leading expert on HR Outsourcing, is partner and managing director of the global HR practice for TPI, a leading sourcing advisory firm with the largest and most experienced HRO advisory practice in the world. During his career, Scott has assisted more than 50 Fortune 200 clients with HR outsourcing strategy development. Prior to TPI, he was president and founder of Gildner & Associates, a firm specializing in human resources outsourcing.

Mary Cook is the founding partner of Mary Cook & Associates, a human resources consulting firm based in Scottsdale, Arizona. She has written more than a dozen books on the subject of human resources management, and her books are published in several languages worldwide.

About SHRM
The Society for Human Resource Management (SHRM) is the world's largest association devoted to human resource management. Representing more than 200,000 individual members, the Society's mission is to serve the needs of HR professionals by providing the most essential and comprehensive resources available. As an influential voice, the Society's mission is also to advance the human resource profession to ensure that HR is recognized as an essential partner in developing and executing organizational strategy. Founded in 1948, SHRM currently has more than 550 affiliated chapters and members in more than 100 countries.

About TPI
TPI is the sourcing advisory industry founder, and the largest advisory firm in the world focused on a broad range of business support functions and related research methodologies. Applying deep functional domain expertise of accomplished industry experts who possess extensive practical experience, TPI collaboratively works with organizations to help them optimize their business operations through the best combination of insourcing, offshoring, shared services and outsourcing.