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July 3, 2009

Ceridian survey shows rising outsourcing interest

Reflects outsourcing decisions are not being impacted by the economy or legislative changes

By CBR Staff Writer

Ceridian has released the results of a survey on outsourcing conducted in April 2009, which quantified the opinions of more than 1500 HR and payroll professionals.

The Ceridian-sponsored Trendline Survey was conducted by the American Payroll Association (APA).

According to the survey, some of the results involved the propensity to outsource, which continues to be high. The survey found that almost one quarter (24%) of those, taking it, were employees of companies who outsourced more recently than in the past. Also, the growing number of companies using outsourcing is another indicator of the recognition of its value.

Keith Strodtman, senior vice president and general manager of Ceridian HRO & multinational solutions, said: The respondents clearly recognised the numerous benefits derived from outsourcing HR and payroll-related activities, which may have something to do with why almost a quarter of the respondents indicated they were outsourcing more today than in the past.

The survey also identified various benefits of outsourcing, like minimising risk, saving money and increasing productivity, among others. These benefits reportedly allow businesses to pursue the outsourcing option, particularly for HR-related activities.

According to the Trendline Survey, 81.2% of the respondents indicated that the current recession is having no impact on their decision to outsource. Similarly, 83.3% indicated that significant legislative changes also appeared to have little impact on their decision on whether or not to outsource. The large majority on both questions is an indicator of the overall interest in and perceived value of outsourcing.

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