An ex-colleague, Kaushik Srinivasan who has recently started to blog, posts an article he wrote on HR becoming a HR Organization and selling services to clients. The question this raises is, would internal HR services suffer if external services earn profits for the firm?
A number of benchmarking requests prompted Xerox to turn HR into a business. Xerox HR Solutions has turned the HR practices and expertise that it has developed over the past 25 years — much of which has earned quality and diversity awards — into a business. Its HR services now include consulting in such areas as employee empowerment, employee satisfaction, performance management, labor management, motivation, reward and recognition, work-force diversity and sexual harassment. And capitalizing on Xerox's core competency, document processing, it also sells document-management services and can recommend technical solutions to support HRMS technologies.HRO as a profit center is not entirely a new concept, but what definitely is new is the impact it will have on the HR’s reputations, both internally and externally.
There are similar experiences by IBM, Levi Strauss and Walt Disney Co.,