Mynd Solutions Pvt. Ltd. Official Blog: SMBs and Outsourcing...

Mynd Solutions Pvt. Ltd. Official Blog: SMBs and Outsourcing...: There is a general perception  among  small & medium business owners that third-party outsourcing of business functions such as HR i...

SMBs and Outsourcing...

There is a general perception among small & medium business owners that third-party outsourcing of business functions such as HR is essential for only large corporate. However, time and again it has been proven that streamlining business operations and cost-control strategies in the form of outsourcing is restricted not just to the large companies but also the SME’s.

Comprehensive Solutions for Every Client 

HR Process Management

 The evolution of outsourcing in destinations such as India, Vietnam and Philippines etc. and the development of high-quality service providers like Mynd Solutions have however driven a change. This change in the thought processes of Small/Medium business owners are driving more outsourcing operations and is primarily attributable to the below reasons:

    Local Payroll-related ccompliance and taxation: Small businesses normally find challenges in this area of business, owing to its strong financial and legal implications. Employee benefits compliance and taxation related laws are the specific areas that require immediate attention and any laxness on the part of the company can lead to major financial losses as well as harm the public reputation of the company. HR outsourcing can be very beneficial in this regard and help to avoid this tricky situation.

    High-end technology access at a relatively affordable price: Small and medium enterprises and/or newly formed companies normally have limited resources for spending on technology and infrastructure etc. In case the backend services are outsourced, the need for companies to own sophisticated and latest technology tools/ skilled manpower are actually eliminated. Hence, the Capex and Opex are decreased for the company.

    A comprehensive solution: SMBs can avail the benefits of a comprehensive HR solution by sub-contracting their entire HR function to a trusted third party vendor. Payroll, Statutory Compliance, Employee Lifecycle management can all be handled under the same service umbrella by the service provider.

Understanding the varied Benefits of Outsourcing..

The Essential Benefits of Outsourcing Your Non-Core Processes and Functions

Organizational Growth: Optimize Your HR

Improve Business Turn around

1. Real-time access. The nature of business is highly dynamic; there are continuous changes and fluctuations without any guaranteed stability. It is almost impossible to assess the circumstances of the business nature. Outsourcing offers a certain level of scalability to help solve the enviable situation of significant growth. If there is a strong team for handling the projects outsourced, then the organization’s growth can be achieved in a better manner.

2. Better Gains: We are all under constant pressure to deliver more productivity and establish new benchmarks. Through the usage of outsourcing services, the existing staff of the company can be aligned in order to handle the outsourced projects. The company’s staffs take care of the outsourced team, and thereby enhancing the productivity and output of each and every member of the team.

3. Attention to the core issues: The growth of a business is quite dependant on the success of your products/services. Companies need to keep ramping up their support infrastructure, in order to witness their desired growth levels. Organizations need to maintain their focus on growing their customer base and conducting relevant market study on the same for driving even more growth and profitability. An efficient strategy to go about this is to outsource part/whole of the non-core business functions to a responsible third-party such as Mynd Solutions.

4. Generating greater value per person due to higher flexibility: Generating optimal profitability through a limited number of employees is a vital tactic. The reason being that with very little staff you stand the chance of delivery failure and on the other side, with higher number of employees there is a possibility of overcrowding and wastage of resources.

On the other end of the spectrum, Outsourcing offers the flexibility to determine and forecast approximate staff levels needed. This flexibility allows you to keep the FT’s at a stable rate of utilization across the year. As a result, the non-productive team of each team member gets decreased.

HRO Driving Enhanced Business Outcomes…

                     HRO Driving Enhanced Business Outcomes…

With growing intricacies in HR management and shift in management trends, companies are now looking at outsourcing majority of the business function in HR. Contemporary backend processes in HR outsourcing including benefits and compensation administration are now leading the way for much larger assignments wherein the entire HR function may be outsourced to a third party.

Most HR leaders and the senior management teams of organizations have adopted the concept of HR outsourcing. Moreover, every size and kind of company have accepted and realized the credibility and requirement of Human Resources Outsourcing. This service, which was earlier used primarily by large corporate is now of equal significance for small and midsize companies as well.

HR Outsourcing Services

It is an evident fact that HR Outsourcing has gained its share of loyalists not being merely restricted to adopters from large enterprises.

• ·         Better and proactive solutions and resolutions
• ·         Relativelylesser hurdles of administrative tasks
• ·         Strategic counselling and advise to senior leadership
• ·         Improved workforce management

Considerations and Guidelines While Outsourcing Services..

Of an on, we have been highlighting the varied advantages and service specifications of different domains of HR and Finance & Accounting Outsourcing. However, today we would like to take an opportunity to present some Considerations that must be assumed before arriving at the decision to Outsource:

·         Examining the corporate culture- Assessing the level of readiness in the organization with respect to transferring some control/confidential information to a third party vendor in order to enhance business motives.

·         Evaluate current processes in different business verticals that are under planning to be outsourced. Companies must determine the efficiency of their processes and also whether they could be managed in a better manner by an external service provider.

·         Performance measurements- ensure adequate determining metrics are in place to assess the vendor's performance and check whether there are any workflow and process improvements or not.

Sometimes, the staff of a company such as the HR or Finance & Accounting team might be reluctant to adopt outsourcing due to fear that their role within the company will get side-lined. However, the very opposite of the same is most likely to be true. There is indeed a change in responsibilities due to the outsource partnership, but it is definitely for the positive.

The positive changes include development of the talent pool of the company teams’ to add skills such as vendor management, vendor performance management, leadership and team management. Additionally, outsourcing would enable your current HR and/or Finance & Accounting staff emphasize on the advancement of their strategic efforts rather than focussing on fulfilment of core administrative objectives. Industry statistics suggest that the outsourcing advantages offset a few of the challenges that may arise, such as a cultural shift.

Moving ahead on the decision to outsource, there are a Few Guidelines that must be followed in order to contract out your organization’s services in a secure manner. Enclosing them below-

Shortlisting the Appropriate Outsourcing Services Provider:

Selection of the right company is among the most critical steps to be followed while outsourcing. The selected vendor must have a stringent security policy. Organizations should cross check if the prospective outsourcing provider has adequate security policies for data protection, privacy and against any vulnerabilities/ threats that may arise from the same.

Well documented and complied Security Policy:

A proper security policy detailing standards and procedures applicable must be in place. The policy should have the capability to maintain the confidentiality of vital client data and must also be regularly validated by a third-party security assessment company. The privacy policies must also be clearly defined and outlined.

Data Protection Policies

Companies should select vendors that employ VTA (Vulnerability Threat Assessment) and ensure the absolute protection and privacy of their client data. Taking the above security considerations in mind will facilitate any company in selecting a reliable, secure and efficient Outsourcing vendor to execute their processes.

Mynd Solutions Pvt. Ltd. Official Blog: Human Resources Outsourcing: An Organizational Per...

Mynd Solutions Pvt. Ltd. Official Blog: Human Resources Outsourcing: An Organizational Per...:                                                         HR Outsourcing With increasing complexities in HR and the department’s ser...

Human Resources Outsourcing: An Organizational Perspective

                                                        HR Outsourcing

With increasing complexities in HR and the department’s service delivery mechanism changes, companies have broadened the scope of HR services that are being outsourced. Traditional, payroll and benefits administration back office transactions have given way to large HRO and BPO (Business Process Outsourcing) wherein the complete HR departments are moved to the third party outsource provider.

HR leaders and senior management have adopted the model of outsourcing of HR. All types and sizes of organizations have recognized the appeal of HRO. Previously considered as a business functioning alternative by Fortune 100 global firms, HRO outsourcing is now readily utilized by SME’s also.

Evidently, HR Outsourcing has gained its share of popularity with the company size not being a limitation any more for adopting or not adopting this service. Today many companies are addressing the requirements of small to medium employees with headcount ranging between 1000-10,000 employees because the advantages of outsourcing are becoming more and clearer now days.

Enlisting some benefits of Outsourcing your HR operations-

·         Improved strategic management of employees

·    Betteradvice to senior management/leadership of the organization on businessmanagement and best practices in HR

·         Lesser administrative hassles

·         Proactive problem resolution of employee issues and escalations

Experts opine, that it is best for companies to outsource their non-core functions and shift all focus on the more strategic aspects of HR such as competency mapping and management, traininginitiatives and organizational development, performance management and workforcemanagement.

Through the outsourcing of non-value added activities and inking business alliances with the respective third party outsource provider, organizations can solely devote their efforts in accomplishing the strategic initiatives that support the objectives, vision and mission of the company. This shift primarily contributes to the improved positioning of HumanResources function as a Strategic Business Partner in the company, which iscapable of providing value-added information. 

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