Main News Desk

Services hike to herald first ‘CBAO’ by 2010

~ shared group functions increase need for single point of strategy, says Northgate HR ~

July 18, 2007

Increasing use of outsourced and hosted services for HR, IT and finance will lead to the creation of a ‘Chief Business Administration Officer’ in many organisations by the end of the decade.

This is according to outsourcing specialist Northgate HR, the HR services and software supplier that currently supports over 20 million of its customers’ employees in 30 countries.

The move towards hosted or outsourced group services is allowing HR departments to play a larger part in strategic decisions, but board-level status is still over the horizon, according to Steve Foster, Manager of HR Business Strategy at Northgate HR.

“Our customers have shown a growing ability to concentrate on their core strengths and shift satellite services to trusted partners, but we’re yet to reach the point where all the outsourcing relationships are managed from a seat at the boardroom table,” commented Foster.

Northgate recently acquired a majority stake in ARINSO, with the deal bringing 14 million customers’ employees under the Northgate umbrella. It is this ongoing consolidation of HR service providers that is set to push the issue even further up the agenda, said Foster.

“There is still a shakedown happening in the outsourcing industry, with suppliers in HR, BPO and IT still jostling for position,” he said. “As businesses of all sizes learn that moving these departments out of the building often not only means cost reduction but also leads to better service, things are continuing to evolve.”

Foster added: “Eventually this evolution can only lead to one outcome – the ability for small and lean in-house teams running large and distributed global functions. Someone will have to lead that team.”

(295 words)

Executive quote

“Our customers have shown a growing ability to concentrate on their core strengths and shift satellite services to trusted partners, but we’re yet to reach the point where all the outsourcing relationships are managed from a seat at the boardroom table,” commented Steve Foster.

About the company

About Northgate HR
Northgate Information Solutions is a leading provider of innovative technology solutions to the public services and utilities markets. Northgate's task is to enhance public value through the intelligent use of people and technology and to share in the economic and social benefits that this brings.

In the UK, Northgate works with four out of five local authorities and every police force. Its systems are used in the management of over 1.5 million local authority and housing association properties out of a total of approximately 4 million in England; in the administration of more than £17 billion of revenues and benefits; and in electoral administration systems covering over 18 million people. Founded in 1969, the company has over 3,300 employees.

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For further information, please contact:
Jenny Thomas / Lisa Gillingham
LEWIS PR
020 7802 2626
jennyt / lisag@lewispr.com

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Services hike to herald first ‘CBAO’ by 2010

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