Following hot on the heels of our recently debated issues regarding the future health of the HR Outsourcing industry, I was delighted to see Convergys renewed its multi-scope HRO engagement with Avaya today for a further five years. I have some personal experience of this engagement from its transition a few years’ ago, when Avaya moved onto a global hub-and-spoke model underpinned by SAP’s HR platform, that included a complex global payroll roll-out. Convergys is also in the midst of global transitions with both DuPont and Johnson & Johnson (both signed after Avaya), and the successful – and lengthy – Avaya renewal spells good news to these more recent adopters of HRO seeking reasurance that their firm chose the right HR deployment model.
In my view, you can only truly judge the success of an outsourcing business when the initial wave of adopters renew for long periods. We have discussed many of the issues this industry faces, but the ultimate proof is in the pudding, and so far, we are seeing the early adopters choose to remain in an HRO delivery environment. These are the companies which have worked through the early complexities and found their status quo with their service providers. I’d like to congratulate both Convergys and Avaya’s HR leadership for their renewed relationship and finding a successful balance.