Case Study
Lopez, Jose Alfonso M. Mgmt 2
BSCA IV – A Human Resource Management Case Study 1: “A Chip off the Rock: Outsourcing HR at Prudential”
Case Scenario
Insurance and investment company Prudential Family Inc. is outsourcing a “piece of the rock” to Exult Inc. The human resources outsourcer will take over Prudential’s HR systems and administrative functions in a deal worth $700 million over ten years.
Main Case
The deal calls for Exult to handle all U.S. payroll, HR call-center management and information systems and support, employee data, staffing, and records management for Prudential’s 47,000 employees. Exult will also be responsible for the company’s accounts-payable transactions.
Questions:
1. What are the pros and cons of outsourcing the HR function?
Within a business, human resources (HR) staffs are responsible for recruiting new employees, terminating employees, handling interpersonal issues and a wide variety of other functions. Many firms rely on in-house HR professionals to carry out these tasks but other companies rely on outside companies to handle HR matters. For businesses of all sizes, there are both pros and cons to outsourcing HR functions. http://smallbusiness.chron.com/pros-cons-outsourcing-hr-administration-functions-22785.html
2. What do you think Prudential should worry about most?
As far as Prudential’s outsourcing to Exult is concerned, I think Prudential has nothing to worry about. The question is why they would worry if they decided to hire the expertise of Exult. Of course, before a company tie up with others, it has planned and decided it well. 3. How can Exult make certain that Prudential is happy with its service?
As David Rhodes, a principal at management-consulting firm Towers Perrin quoted, “It’s no surprise that companies are outsourcing functions as a way to save money and focus on core business.” So I think, there’s an assurance that Exult will execute its job for Prudential in
BSCA IV – A Human Resource Management Case Study 1: “A Chip off the Rock: Outsourcing HR at Prudential”
Case Scenario
Insurance and investment company Prudential Family Inc. is outsourcing a “piece of the rock” to Exult Inc. The human resources outsourcer will take over Prudential’s HR systems and administrative functions in a deal worth $700 million over ten years.
Main Case
The deal calls for Exult to handle all U.S. payroll, HR call-center management and information systems and support, employee data, staffing, and records management for Prudential’s 47,000 employees. Exult will also be responsible for the company’s accounts-payable transactions.
Questions:
1. What are the pros and cons of outsourcing the HR function?
Within a business, human resources (HR) staffs are responsible for recruiting new employees, terminating employees, handling interpersonal issues and a wide variety of other functions. Many firms rely on in-house HR professionals to carry out these tasks but other companies rely on outside companies to handle HR matters. For businesses of all sizes, there are both pros and cons to outsourcing HR functions. http://smallbusiness.chron.com/pros-cons-outsourcing-hr-administration-functions-22785.html
2. What do you think Prudential should worry about most?
As far as Prudential’s outsourcing to Exult is concerned, I think Prudential has nothing to worry about. The question is why they would worry if they decided to hire the expertise of Exult. Of course, before a company tie up with others, it has planned and decided it well. 3. How can Exult make certain that Prudential is happy with its service?
As David Rhodes, a principal at management-consulting firm Towers Perrin quoted, “It’s no surprise that companies are outsourcing functions as a way to save money and focus on core business.” So I think, there’s an assurance that Exult will execute its job for Prudential in