One very important trend
in the recent times has been the growth of
human resource outsourcing. HR outsourcing
to India includes administrative tasks such
as payroll, benefits, education/training, recruiting
personnel, administration etc. to realize economies
of scale and achieve standardization of services.
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 software companies, service providers
or manufacturing firms, decide what they are
good at and are outsourcing everything else,
i.e., focus on their core competency, and let
someone else do the rest in a more efficient
and cost-effective manner.
As a result, human resources outsourcing is becoming
increasingly prevalent. The number of companies outsourcing
HR activities to India continues to rise, and the
scope of outsourced HR activities continues to expand.
HR outsourcing can happen in HR functions, like payroll
administration (producing checks, handling taxes,
dealing with sick-time and vacations), employee benefits
(Health, Medical, Life insurance, Cafeteria, etc),
human resource management (hiring and firing, background
interviews, exit interviews and wage reviews), risk
management, etc. Outsourcing has become a common
response to manage people and technology resources
strategically, enhance services, and manage costs
Outsourcing non-core activities allows
HR professionals to move away from routine
administration to a more strategic role.
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.
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.
The HR outsourcing business opportunity is large
and India is likely to garner a larger and larger
piece of this pie in the future. India, with its
intrinsic advantages such as low cost, ready pool
of English speaking manpower and geographic positioning,
is emerging as a viable destination for HR outsourcing
companies to set up their businesses.
But still here
people are not very clear about what exactly is manpower
outsourcing all about, and issues like quality and
trust needs to be addressed properly. Experts say
the basic reasons hampering the growth of HR outsourcing
in India are confidentiality and cost factors. Moreover,
the fear of losing jobs, losing control over confidential
data, ethics and quality of outsourcing vendors,
security breaches and overall confidence in the vendors
deters many organizations. The biggest problem -
and this is why the HR outsourcing industry in India
is on the back foot - is the government and the industry's
failure to tackle issues like data security and data
privacy. This is where Indian HR outsourcing companies
face a major handicap. The Indian government is still
grappling with drafting a data protection law designed
to quell growing privacy concerns from their offshore
However, the future seems to be very promising. India has immense potential as
more than 80% of fortune 1,000 companies are discussing HR outsourcing
as a way to cut costs and increase productivity.
Right now, India is barely skimming the surface of the HR outsourcing market
potential. Indian life Hewitt (ILH), FIDELITY, EXULT and MAFOI are some of the
prominent HR outsourcing services providers in India and the clients include
giants of manufacturing, software and service industries like GE Capital, Ford
Motors, Hyundai Motors, Satyam Group, Infosys, Enron, Haldia Petrochemicals and
HSBC, to name a few, but many more needs to be added to that list.
Large organizations mostly are outsourcing
their HR services to India in order to concentrate
on their core processes. Such large organizations
can increase the profitability of their business
by outsourcing. Large organizations also stand
to gain from better HR services for their employees.
Small and mid-size organizations also outsource
if they do not have enough of HR staff to manage
their HR functions. Mid-size and small organizations
can also benefit from cost-effective services
when they outsource to India. Outsource HR
services to India to enhance your productivity
and return on investments and also to achieve
the economies of scale.
When you outsource HR services to India, you can
see an improvement in your HR support functions.
Outsourcing HR services can help you bring out more
effective and efficient processes within your organization.
Payroll functions can be completed on time accurately
and your outsourcing partner can come up with ingenious
ways of improving HR functions in your organization.
Outsourcing HR services to India can help you achieve your targets. Your business
can become more productive with the help of effective business and HR strategies.
You can also on save time, effort and manpower. You can concentrate more on your
business and can be relieved from taking care of your HR work in-house. With
strategic HR strategies, training programs and development programs, you can
retain your employees.
Outsourcing HR Services to India can
help your organization gain a competitive
Outsource HR services to India and benefit
from the skills, expertise, latest technology
and professional services that India offers
in the field of HR. When you outsource HR
services to India, you will find your operating
performance, risk management and control
improving. By outsourcing HR services, you
can also gain access to professional service.
HR outsourcing has a huge potential for employment
also. Experts believe that in present times
HR outsourcing is undergoing a transition
phase, it would still be sometime before
we see increased levels of HR activities
being outsourced to India as lack of domain
knowledge and quality are some of the critical
Till that time, HR outsourcing in India remains to be a gold mine waiting to
Outsource an Employee in our offices, without having to spend time and money on offices, finding employees and setting up abroad