In-sourcing HR: shared service centres in the Netherlands

Abstract

Due to the impact of now widely-available technologies, new logics behind the organisation of the HR function through the in- and outsourcing of HRM activities have been emerging, particularly addressing issues of integration, cost-efficiency and competitive advantage. In particular, increasing numbers of HR shared service centres (SSCs) are being established, housing HRM activities under one roof for selected organisation domains. In practice many stories have been told about these changes, but little has been learned from them. This paper explores theory and practice and combines this with newly collected evidence from 15 companies in the Netherlands to see how HR delivery and professional logics are being impacted. The findings show that SSC models are largely instigated with the primary aim of increasing customer focus, and although companies are still challenged by being able to measure SSC performance, the contours of new HR delivery and professional logics are emerging.

Keywords:

• HR delivery
• HR professional
• shared service centres