HR is the largest business process outsourcing segment worldwide at $12.4 billion, making up more than a third of the global market. This growth, according to The Insight Partners, is expected to continue in coming years to the tune of a 22.5 percent CAGR.
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With cloud services and HR outsourcing growing in unison, it has become clear that the focus of companies is shifting, with many frequently outsourcing talent management, payroll, recruitment processes and employee benefits processing. Rising privacy concerns and regulations have aided the rise of HR and HCM services in particular, as solution providers work on whatever it is that makes them unique.
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2) An Emphasis on Gaining and Growing Top Talent
A managed or BPO solution carries the benefit of delivering efficiencies and higher quality of services for customers compared to them trying to take it on themselves. By allowing a partner who specializes in HR to manage an HCM solution such as SAP SuccessFactors, companies can exert their energy on strategic, value-add activities rather than basic tactical or administrative processes.
Naturally, this plays as a great advantage in attracting, developing and retaining top talent and serves the mission of standing out through industry specialization. Partner managed HCM solutions can also give customers more consistent ongoing cost structures, improved interoperability with existing infrastructures and scalable solutions.
A company-wide dedication to mission-critical activities can also lead to many transformational improvements.
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3) A Push for Organizational Transformation
Businesses that leverage managed cloud solutions are twice as likely to see reductions in capital expenditure spending, according to Aberdeen. They are 60 percent more likely to have faster access to data. Forty-six percent of companies have seen reduced complexity in their IT infrastructure through managed cloud solutions, and 54 percent have gained a more agile infrastructure.
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The ripple effect of implementing managed cloud is far and wide. It won’t just give companies greater focus on what they do best?—?it will help them do what they do best even better!
As solution providers continue to increase the emphasis on their core business and look to accelerate time to value, more and more are turning to partner managed cloud.
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