HR Outsourcing: Opportunities and Challenges for India
HR OUTSOURCING: OPPORTUNITIES AND CHALLENGES FOR INDIA
HR OUTSOURCING: INTRODUCTION
If an organization lacks the skills and the expertise to tackle human resources, outsourcing HR services is the solution.
HR outsourcing can be mainly classified into two categories. Transaction and administration outsourcing services and consultancy outsourcing services. HR transaction outsourcing services include monthly requirements such as, payroll processing. HR consultancy services are some of the other services that can be outsourced.
WHY OUTSOURCING
Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can 't be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner. The organization can focus on higher value-added activities while the outsourcing provider takes care of the day-to-day administration. Critical internal resources, such as technology and talent, can be devoted to company 's core business. Outsourcing reduces the need for large capital expenditures in noncore functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today 's business environment. A growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognize outsourcing relationships as long-term partnerships created to further the strategic goals of the organization. As a result, human resources outsourcing is becoming increasingly prevalent. Outsourcing noncore activities
HR OUTSOURCING: INTRODUCTION
If an organization lacks the skills and the expertise to tackle human resources, outsourcing HR services is the solution.
HR outsourcing can be mainly classified into two categories. Transaction and administration outsourcing services and consultancy outsourcing services. HR transaction outsourcing services include monthly requirements such as, payroll processing. HR consultancy services are some of the other services that can be outsourced.
WHY OUTSOURCING
Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can 't be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner. The organization can focus on higher value-added activities while the outsourcing provider takes care of the day-to-day administration. Critical internal resources, such as technology and talent, can be devoted to company 's core business. Outsourcing reduces the need for large capital expenditures in noncore functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today 's business environment. A growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognize outsourcing relationships as long-term partnerships created to further the strategic goals of the organization. As a result, human resources outsourcing is becoming increasingly prevalent. Outsourcing noncore activities
References: • www.hrotoday.com • www.outsource2india.com • www.hinduonnet.com/jobs/index • www.offshoringtimes.com/WhyIndia • www.technology.physorg.com • www.sharedxpertise.com/uploaded/documents/HRO_Report • www.hrmreport.com/pastissue/article • www.conferenceboard.ca/documents • www.ddchro.com • www.sunilkhullar.com