Cuts must not be at the expense of HROn 12 Jun 2001 in Personnel Today Previous Article Next Article Comments are closed. The outsourcing bandwagon picked up speed this week when Nortel Networksjumped on by launching a deal with PricewaterhouseCoopers. The contract willsee 100 HR staff move to a service centre covering all of Nortel’s 20,000European employees. The deal is the latest in a series of outsourcing contracts that arechanging the landscape of HR, and all the signs are that many otherorganisations are likely to take the same route. Like other outsourcing projects, the objectives of the Nortel deal were costefficiencies and freeing up HR to act strategically. This is fine in principle,but it is important to monitor whether any cracks appear in the outsourcingmovement’s façade in the months to come. Among employees in those companiesthat have grasped the nettle, there are already grumbles about how the new HRis too impersonal and remote. There is also a danger that line managers on thereceiving end of e-enabled HR and call centre helplines might feel too much ofthe grunge of traditional HR is being passed their way. In this issue of Personnel Today, Chris Matchan, HR director of the PentlandGroup, makes the point that outsourced HR may not be the solution whencompanies are going through mergers or acquisitions. As Matchen says, it is just at this time when people want to address theirconcerns to a human face rather than dial an 0800 number in a service centre. It is up to those who remain in core HR roles to use their new strategicremit to ensure that such quibbles remain teething problems of the outsourcingrevolution. If they do not, outsourcing will be simply buying cost savings atthe expense of good HR. Related posts:No related photos.