From the “What the heck?” Files

HP in HRO? Yep, according to a recent article in Workforce Management Hewlett-Packard signed a payroll outsourcing deal with Nestlé. Although recruiting is not part of the deal, Nestlé may consider outsourcing other HR-related processes to HP such as benefits administration.

According to industry analysts, HP is taking it slow and doing it right with their approach to the HRO market by initially targeting just its finance and accounting clients. Outsourcing finance and accounting processes is a more successful model than HRO because it's simpler, and there are several India-based IT firms working to include payroll and benefits administration in their finance and accounting outsourcing deals.

Look out traditional outsourcing firms – companies are looking for technological expertise, and IT firms are where it’s at.