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| Business Process Outsourcing |
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| HR Outsourcing |
HR is a strategic business
function in most organizations and hence
outsourcing the processes related to it is a task that requires ample thought
and decision. There are several concerns that most HR decision-makers
normally have with regards to confidentiality of employee information, loss of control
over their internal resources and knowledge also the quality of work delivered
remains a major concern.
Several organizations in the
employee range of 1,000-5000 are outsourcing their Human Resource processes as
a cost-control strategy. HR is primarily a non-profitable cost centre in the
organization, and hence qualifies itself as the best area to be outsourced to a
third party. More and more companies are now subcontracting the backend HR functions
including compensation
and benefits administration, recruitments,
expense
management, payroll
and statutory compliances.
As per market statistics, HR is
one of the most aggressively growing segments in the Business Process
Outsourcing (BPO) market. The primary driving factors behind the increasing
adoption of HRO (for not just the redundant backend tasks but even for performance
management, talent management, training etc.)-
Efficiency Enhancement: Efficiency is undoubtedly a
primary driver in the outsourcing business. Mostly, efficiency depends upon the
outsourcing service provider’s capability to enable technology additions to the
usual HR platforms and processes.
Cost Benefits: Majority of the outsourcing
decisions are intended at direct cost benefits to the company. However, one
needs to know that solely basing an outsourcing decision on price benefits does
not guarantee success.
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