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Outsourcing: the business model for the new millennium

By Ian Hunter (September 2007 Issue)
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Outsourcing is no longer a step into the unknown. This is a 21st century service industry that in just a few years has matured into a multi-billion dollar global phenomenon. As more companies have embraced outsourcing as a driver of overall business performance, the key criteria for success – and strategies for risk reduction – have been identified.

HR Outsourcing (HRO) per se is not new. Individual HR services such as training delivery, recruitment and payroll have a long and proven record of successful provision via specialist third party providers. What the emergence of organisations such as Exult and Xchanging established was a new market for full-scope HRO transactional outsourcing that covered all parts of the employee life cycle administration as well as significant line manager and employee advisory services.

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