How and Why Technology is changing how HR outsourced companies are adding value to their customers.

How and Why Technology is changing how HR outsourced companies are adding value to their customers.

During the last few months Covid 19 has forced many companies to review how they add value to their customers. After the initial reaction, customers vanishing off the face of the earth, others going into hibernation, or moving to working from home, HR outsourced consultancies amongst many others, are taking time to review their value proposition, what they are doing and why for their customers.

It is an excellent time for companies to look at what to, and how much to, outsource their non-core activities. For companies Covid19 has forced everyone to re-evaluate their business model. Rethinking the business model is not a simple cost reduction model, but about a complete strategic review of their whole business value stream. While business leaders started this process by working out the survival numbers for the business, they are now reviewing the whole business model to deal with the long-term fallout from Covid19 pandemic.

For modern companies the business model set-up has been to outsource all non-essential or added value services. This model used to be the preserve of the digital and IT sectors but is now becoming the mainstream model across many sectors as technology and society shifts have revised entire business value streams.

For most companies the shift in need by customers in both technology and service perspectives, has been forced upon them by the sudden changes caused by Covid19, but for many it was already happening. The shift to providing more services in bundles is already well underway, for many progressive HR outsourced companies the next move has been to supplement predominately physically delivered HR outsourced packages with total turnkey online support packages.

This shift has seen these progressive HR outsource consultancies moving from compliance keepers to key strategic HR partners and for some onto the board in advising clients on a wide range of people capital related topics. High growth and often newer customers are often outsourcing everything that is non-core to their business and looking for progressive HR outsourcing consultancies to provide them with that strategic support.

Has Covid19 caused this shift online, or just accelerated that shift? The answer to that question will largely depend upon the profile of what each HR company’s customer base looks like and equally how that HR company views and drives change. For the progressive HR outsourced consultancy taking on more outsourcing from customers across a wider range of services using 3rd party integrated technology will be second nature. Bundling increasingly complex packages together to support their clients is the simplest and easiest way to grow, and protect, their customer base. For others, this is a brave new world, where invisible clouds have replaced filing cabinets fills them with fear, and customers requesting full outsourced solutions, are questions pushing them beyond their current comfort zone.

There has never been a better time for a HR outsourcing consultancy to look at moving forward with a step change in what they offer their customers. For companies that have had to hibernate or pivot this now when they are looking at what they do differently. It is therefore important now to look at refreshing and repackaging your offerings to support their revitalisation.

The list of services that are being outsourced as companies re-invent themselves can range from a few extra ones to completely new business models. From PLC’s shutting their offices and embracing a permanent work from home culture to businesses redefining their value stream. New structures and opportunities being created today and will emerge over the next few months, so for companies and HR outsourced consultancies now is the time to review needs and offerings and develop new models encompassing not what a company had but what it will need to compete in the future.

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