Multinational and global organizations are increasingly looking to utilize global HR Outsourcing (HRO) as a key strategy to deliver HR services across their entire global operation. Such organizations are likely to face the problem of the ‘‘Long Tail’’; whilst they may well have quite a few countries with scale – hundreds if not thousand employees in those countries – there will often be a long list of countries with relatively few employees where the value proposition for HRO is much less clear. There is no ‘silver bullet’ solution for the ‘Long Tail’, but consideration of the following nine rules will help organizations who are seeking the benefits of global HRO:
1. Match the HRO market to your particular ‘Long Tail’
Whilst there are global providers with operations in over 100 countries, buyers need to be aware that this presence may not extend to either current or future capability to provide the required HR services in all of those countries. At this point in time, many global service providers can realistically offer a broad range of services in at most 50 – 80 countries. ‘Top Tier’ HRO service providers can address this shortfall by acting as integrators of services, using local suppliers in ‘Long Tail’ countries. In these cases, client organizations need to be aware of the depth and breadth of the relationships between the integrator and the local suppliers, how process hand-offs will work and where responsibilities lie. Whether using direct capability, or through integrating local suppliers into the global delivery model, it is important to map the HRO service provider’s capability onto the organization’s actual need to see the art of the possible for global HRO.
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