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Outsourcing Payroll / HR Administrationpresent situation, trends, future(joint study with e-xecutive)

Sergey Kessel, Sales Director CIS

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Business Process Outsourcing Use of external supplier to run non-core (and boring)

business process

We speak of Payroll Outsourcing and HR Administration Outsourcing

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UCMS Group Russia and E-xecutive survey

• 293 participants (e-xecutive members)

• Both Local and Foreign companies

• Various size and industry

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Outsourcing …

Recruitment

Employee Development & Appraisal

Payroll Processing

HR Administration

0% 10% 20% 30% 40% 50% 60%

48%

30%

19%

11%

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Top-3 reasons to outsource

(38%)Optimization of HR functions

(32%)Reduce dependence on key employees

(18%)Reduce the workload of internal services without headcount growth

Other reasons • Increased privacy (6%),

• Transparency of business processes (4%)

• Cost effectiveness (2%)

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Stoppers Internal reasons

• Fear of loss of confidential information (62%)

• Top management is not open (39%)

• Internal resistance to innovation (28%)

External causes• Price (38%)

• Lack of information (26%)

• Complicated legislation (31%)

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Market (Outsourcing of Financial Processes)

(Payroll, HR, Accounting)

• Over the past 4 years, the market is growing, 10-15% a year

2010 results• Payroll outsourcing 22% in 2010• HR Administration 5% in 2010 • Accounting outsourcing 15% in 2010 • Total (financial process outsourcing) 17%

in 2010 • Taking into account that prices decreased

growth in terms of number of payslips/ transactions is higher

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Conslusion

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Questions