New research reveals that companies are planning to increase their investment in HR technology over the next year to drive efficiencies and improve service delivery.

1. Companies planning to
spend more on HR
New research reveals that companies are
planning to increase their investment in
HR technology over the next year to drive
efficiencies and improve service delivery.

2. Towers Watson recently did a survey of over 600
companies from around the world. More than half
(52%) of the companies that participated were large
and midsize organizations with more than 5,000
employees. Here are the survey’s key findings.

3. Do you anticipate changing
your current HR structure in
2012 or 2013?A growing number of
all organizations
(44%) — dramatically
more than last year’s
26% — indicate they
will change their HR
structure in 2012 or
2013.

4. Reasons for changing
current HR structure:
64% of those who
anticipate changes in
current HR
infrastructure plan to
do so to drive further
efficiencies.

5. Anticipated changes to HR structure in
2012 or 2013:
Most companies making changes will move to (or back to) a shared
services environment (39%) or bring additional services into an
existing shared services organization (31%).

6. Top HR service delivery issues:
The primary HR service delivery issue remains talent and performance
management. After that come streamlining business processes, becoming
more involved in strategic business issues, and recruiting, which is on the
rise: 22% of respondents indicated it will be a priority for the year ahead.

7. HR technology spending in
2012 vs 2011
More than half (53%)
of those surveyed
plan to keep
spending at the
same level as last
year, while 31% will
increase, or
significantly increase,
spending. Only 16%
responded that
they’d be operating
at a reduced budget.

8. Factors accounting for increased spending in 2012
Among organizations that expect to spend more in 2013 than in the previous
year, over one-third (38%) plan to deploy additional functionality from existing
vendors; another 36% are looking to upgrade or re-implement their existing
HRMS, and 34% plan to expand their existing self-service offerings.

9. Changes to the HR structure in
2012 or 2013 (Asia Pacific)
Moving to shared services, and adding functions to existing
shared services functions, are the most common structural-
change actions being taken across all regions.
Move to a single HR organization for the entire organization 15%
Decentralize HR, allowing HR to be run by business unit or geography 15%
Move to a shared services environment with HR COEs and HR business partners 49%
Bring additional services into our shared services environment 21%
Combine our HR shared services with other corporate functions (e.g., Finance) 6%
Move away from a shared services environment 0%
Outsource (some/more) functions 24%
Bring (some/more) outsourced functions back in-house 1%
Other 9%

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11. Please note that we do all we can to ensure accuracy and timeliness of the information
presented herein but errors may still understandably occur in some cases. If you believe that
a serious inaccuracy has been made within the text, please email us. This content is provided
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indirect losses arising from the use of this report or its contents.
DISCLAIMER
2012 HR Service Delivery and Technology Survey Report
Emerging Choices, Enduring Changes: Creating Service Delivery Success in an Era of New Opportunity
http://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2012/08/2012-HR-Service-Delivery-and-Technology-Survey-Report
REFERENCES