Outsourcing HR and payroll has increasingly become the cost-cutting option of choice on the board room agenda but outsourcing activities can put the long-term health of a company at risk if not managed correctly, warn SAKS Consulting.

They say that companies often overlook the importance of assessing the suitability of strategic outsourcing options. “Successfully managing vendor relationships that can often get strained very quickly and delivering on tangible ROI and risk management models is a must for successful outsourcing strategies”, advises Sharhabeel Lone, Partner in Business Strategy at SAKS.

A recent Softworld survey of 229 HR and payroll professionals revealed that 68% have plans to outsource its facilities to allow remote access for workers compared to only 15% who planned to do this at the end of last year.

“There is a growing awareness amongst businesses that certain elements of the HR function can be outsourced without compromising on service”, comments Softworld Portfolio Director, Justin Opie. “However, the key is undoubtedly to get this right from the outset.

This year’s Softworld HR & Payroll event in September, sponsored by HR Zone, will aim to help businesses understand the benefits of outsourcing, whilst warning them of the pitfalls to avoid.

The Softworld session, entitled: ‘Strategic outsourcing – hype or reality?’ forms part of the event’s educational programme. During the session, Lone will offer delegates advice on the right time to outsource, how to set up effective service level agreements and how to get the right ROI.

Other topics to be covered at the event on 24-25 September include: choosing a new HR system, building a business case, changes in payroll legislation, as well as a case study session hosted by MCI.

For more information, or to pre-register, click here.