Human Resources Outsourcing

Human Resources Outsourcing

Human Resources Outsourcing (HRO) has evolved rapidly in the last decade. Payroll and 401(k) transactions have evolved into complex, multi-process, IT intensive arrangements which touch many areas within an organization. Whether the driver for the transaction is transformation of the HR function, rationalization of multiple third party and in-house IT systems (HRIS), or pure cost savings, these transactions can have a huge impact on the way your employees view your organization — and how other management views the HR function. Also, given the relative immaturity of the marketplace for multi-process HRO transactions, the high-profile difficulties of first-generation transactions, the rapid consolidation in the industry, and the emergence of SaaS providers with compelling business propositions, HRO transactions place a premium on a well designed and constructed delivery model and contract that will withstand evolution in the service delivery mechanism and allow the customer appropriate flexibility in the event of changes in the supplier community.

Hunton & Williams LLP lawyers have significant experience with HRO and the key business models, suppliers and advisors in the area. We couple our outsourcing experience with an integrated team of outsourcing-savvy ERISA, employment and privacy lawyers, among others, to provide critical perspective on each transaction. We have developed and negotiated contractual mechanisms to deal with the unique challenges in the HR area, including TUPE compliance, ERISA fiduciary concerns, plan disqualification events and U.S. Department of Labor EPCRS processes, recovery of overpayments and the special difficulties of cross-border data flows. We work closely with the HR function of the client, inside and outside counsel and advisors to make sure that the client's needs are understood and protected.

Recent Experience

  • Represented multiple enterprises in transactions with Workday.
  • Represented a Fortune 150 technology and document management company in a more than $250 million comprehensive HR outsourcing transaction involving client locations in more than 40 different countries.
  • Represented one of the world’s largest energy companies in a $200 million comprehensive HRO transaction with Aon Hewitt, including health and welfare benefits administration, pension administration, payroll, human resources information systems (HRIS) and employee self-service and service center functions.
  • Represented a Fortune 200 financial services/insurance company in a comprehensive HRO transaction with Xerox/ACS.
  • Represented a major diversified energy company in a $1.6 billion business process transformation and outsourcing arrangement with IBM, including HRO as one of several processes that were outsourced.
  • Represented a global 1000 manufacturer in $50 million HRO transaction with Excellerate HRO (Xerox/ACS).
  • Represented multiple Fortune 500 and Global 1000 clients in single process/non-comprehensive HRO transactions, involving health, welfare and benefits administration, training, payroll, and other discrete processes in the HR function.

Global Privacy Experience
Privacy, information management and data security strategies are key components of almost every outsourcing transaction. This issue is particularly important in HRO transactions as HIPAA and EU Data Directive issues regarding personal data are frequently critical components. One of our key differentiators is the coupling of our outsourcing experience with the resources of our global information management team, which Computerworld ranked as the top privacy advisor in each of its four surveys. We stay at the leading edge of privacy policy development around the world through our think tank, The Centre for Information Policy Leadership @ Hunton & Williams.