Human Resources: MORE COMPANIES TAKING A SELECTIVE APPROACH TO OUTSOURCING, WATSON WYATT SAYS

WASHINGTON, November 16, 2006 – When it comes to outsourcing HR technology, more companies are embracing a selective approach rather than exclusively relying on a single provider, Watson Wyatt Worldwide, a leading global consulting firm, has found.

“Decisions about how best to use outsourcing are very specific for each firm, depending on its needs and culture, but it’s clear that many companies would rather not use one vendor for all their HR outsourcing needs,” said Richard Hubbard, director of Watson Wyatt’s U.S. technology and administration solutions practice.

Watson Wyatt research in 2005 showed that only 8 percent of U.S. companies surveyed consolidated benefits administration and other HR activities with a single vendor, and only 5 percent planned to do so by 2007.

Studies by two independent technology research firms, CedarCrestone and the AberdeenGroup, confirm this shift. In its 2006 “Workforce Technologies and Service Delivery Approaches Survey,” CedarCrestone finds a “strong move of respondents toward selective outsourcing.” A 2006 report by the AberdeenGroup says companies are struggling to make a business case for total outsourcing because the return on investment has not been substantiated.

At Watson Wyatt, with its strong focus on providing quality delivery, the number of outsourcing projects in setup or delivery mode grew to 123 in September 2006, up from 66 a year earlier. The firm now has nearly 200 employer clients and 5 million employee participants using its outsourcing solutions.

“The demand for selective outsourcing solutions is increasing for a number of reasons,” Hubbard said. “Such solutions not only maximize savings by combining clients’ in-house capabilities with our own, they maximize service. The up-to-date technologies that vendors provide allow employers to offer a self-service, Web-based approach that helps employees better understand and use their benefit programs.”

To learn more about Watson Wyatt’s selective outsourcing solutions, visit Watson Wyatt on the Web at watsonwyatt.com.

About Watson Wyatt Worldwide
Watson Wyatt (NYSE: WW) is the trusted business partner to the world’s leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 6,000 associates in 30 countries and is located on the Web at www.watsonwyatt.com.

Media Contact:
Ed Emerman
609-452-5967

The HR industry´s premier online community and resource for Human Resource professionals: HR, human resources, HR community, human resources community, HR best practices, best practices in human resources, online communities for HR, HR articles, HR news, human resources articles, human resources news, HR events, leadership, performance management, staffing and recruitment, benefits, compensation, staffing, recruitment, workforce acquisition, human capital management, HR management, human resources management, HR metrics and measurement, organizational development, executive coaching, HR law, employment law, labor relations, hiring employees, HR outsourcing, human resources outsourcing, training and development
hr.com. human resources management resources for hr professionals. | HR menus | HR events | HR Sitemap