Pandemic Pushes Healthcare Human Resources Into Outsourcing, Black Book Survey
Healthcare organizations have reached a critical business inflection point brought on by the impacts of the COVID-19 pandemic, massive disruption caused by healthcare digitization and the move towards multi-cloud solutions that other industries have had to grapple with.
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“Human Resources in healthcare organizations has traditionally been slow to adapt to new technology,” said Brian Locastro, Senior Analyst at Black Book. “HR was rarely on health systems’ C-Suite priority list for investment, but outsourcing technology is changing that.”
The belief that HR outsourcing in healthcare enterprises is still being driven by cost-cutting has also evolved. “Outsourcing is not going to save your organization significant money in 2021 unless you go down the offshoring path where labor costs are cheaper, but the number of companies outsourcing full or key functions offshore are now diminishing,” said Locastro. “What you’re getting instead when you outsource HR is the impact it gives back to the health system and how it powers the HR transformation journey.”
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Seventy-seven percent of healthcare HR leaders participating in the survey confirm this disruption is changing the outlook for human resources as a function and the valuable role that transformational outsourcing is playing in health systems. “Hospitals are removing the barriers between seemingly disparate systems including HR via multi-cloud solutions,” said Locastro.
Additionally, healthcare companies that outsource their entire HR function to one provider are shrinking, but outsourcing of point solutions is definitely on the rise.
Ninety-one percent of HR leaders surveyed report that the days of HR outsourcers doing everything are probably over. Nearly all (96%) are rethinking or have retracted the total HR system outsourcing contracts to reorganize into a blend of functional types of outsourcing using advanced technologies.
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