Hopkins warns that it is important for a supplier to be able to provide proper performance metrics linked to business values, from service level agreements through to business improvements. "The provider must sit down with the customer and define business values, discuss particulars, requirements and whether the service will be 24x7, or whether the customer wants a certain amount of pay runs in a certain time frame, and so on," says Hopkins.
Problems occur if you don't define clearly the important measures, warns Hopkins. "Even if you outsource something like payroll, you still have to manage it and ensure your service provider continues to deliver," says Hopkins.
Payroll and accounts, like any other business process, shouldn't be outsourced just to get rid of a mess, warns Jester. If it doesn't work well internally, don't outsource it, he warns. "You'll just end up with an outsourced mess and a smart service provider wouldn't take it on, unless part of the agreement was to transform the process into a better ordered one," he says. "In the same bucket are those who outsource to save money -- If you are considering this, don't do it. You might save money but it's not a reason to do it. A smarter reason is to think about the internal processes and what works and working out some business processes that work and those that don't," he says.
Hopkins says she is seeing a general raising of outsourcing focus towards business processes such as accounts and ;payroll. "Service providers are not just handling the applications but also taking over the functions of remuneration, payroll processing, and so on, and that includes people as well as IT.
"Customers are pushing the barrier beyond just seeking subject matter experts, for example in the payroll market, and are raising the bar and allowing us to come in and understand their business in a more strategic way, identify exactly what they are looking for, and getting the full potential from a partnership with their business."
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