Struggling SMEs outsource HR

Businesses are paying a heavy toll for the economic downturn and now, more than ever, they need resources to help streamline operations, manage risks, contain costs and build employee morale, writes The Daily Reporter.

For these and other reasons, many small and midsized companies are outsourcing their human resources tasks to professional employer organisations.

Professional employer organisations (PEOs) handle tasks including payroll, tax and employee benefit administration, regulatory compliance, workers' compensation, unemployment claims and employee assistance programmes. To get the most from PEOs, companies must take certain steps from the start.

Convergys, a provider of relationship management solutions, has a five-year extension on an HR management contract known as 'People First' with the state of Florida, says TMCnet.

Convergys said this extension will allow the state to continue to benefit from millions of dollars in savings.

Convergys will also provide additional enhancements that are in place to improve the quality and functionality of the state's HR management system, while also continuing to support the state's 240 000 employees and elected officials with services such as HR, benefits and payroll administration and recruiting.

The Cardiff County Council has entered into a 15-year partnership with Tata Consultancy Services (TCS) on a project aimed at making it easier for residents of the Welsh town to access council services, says Economic Times.

As part of the commercial deal, the council's IT department will collaborate with TCS to integrate and rationalise its back office IT systems.

Another objective is to create a single service to centrally manage HR and payroll operations.