The New Era Of Outsourcing: Why Web-Based Human Resources Has Come Of Age

i>Application service providers offer a type ofbecoming more popular because the hosting model is
outsourcing that increasingly answers requirements tosimply more cost-effective.
control and secure company data while experiencing,Why Go to the Web?
the convenience of minimal technical overhead.When several companies are using the same
The hosted model allows a company to outsource theinfrastructure - provided by the application service
maintenance and overhead of a technology platformprovider (ASP) - economies of scale extend the
and software, yet maintain full control over thepromise of the best and most robust systems at the
sensitive data and management of the process.lowest price point to each individual client company.
According to research by Price-Waterhouse Coopers,Hosted applications provide a blended model that
"Total Cost of Ownership: Warning Signs of Hidden Incaptures the best of in-house HR administration with
House System Costs," companies can shave up to 80the best of outsourced HR administration. The hosted
percent of the time it takes to complete payroll simplymodel allows a company to outsource the
by automating the process.maintenance and overhead of a technology platform
Qutsource or insource? It has never been an easyand software, yet maintain full control over the
question to answer. HR directors love the security ofsensitive data and management of the process.
running their systems in-house, and yet the expensesEasier to Expand
of maintaining the infrastructure, licenses and technicalFast-growing, Wisconsin-based Paragon, which helps
staff are often prohibitive. Yet with traditionalcompanies with their IT needs, and SRP Federal Credit
outsourcing, the potential lack of control can be aUnion, based in South Carolina, froze the number of
concern. In addition, many more traditional HRpeople in their HR departments despite adding 70 and
practitioners are becoming more of a key element in125 employees, respectively. That's an annual savings
the business and total rewards strategies. This allowsfor each of $45,000 to $65,000 in salary savings by
little time for getting involved in the day-to-dayoutsourcing several HR functions. Additionally, these
administrative functions. While outsourcing may not befirms are seeing significant return on investment (RO!)
the solution for all companies, this article providesfrom automated time collection. According to the 2003
information on its potentially cost-saving andPrice Water house- Coopers report, "Total Cost of
time-saving benefits.Ownership: Warning Signs of Hidden In House System
Application service providers offer a type ofCosts," companies can shave up to 80 percent of the
outsourcing that increasingly answers requirements totime it takes to complete payroll simply by automating
control and secure company data while experiencingthe process. Those with 500 employees can save
the convenience of minimal technical overhead.$2,600 per pay period by moving to an electronic
According to the Nov. 4, 2004, Forrester Researchsystem, according to figures compiled by iEmployee in
report, "Trends 2005: HR Management Systems" bythe 2005 white paper "Online Pay Stubs.
Paul Hamerman, Web hosted HR applications are