Human Resource Too Getting Outsourced ! Is It Good Or Bad ?
In today's dynamic employment market, all employers must search for ways to reduce costs while maintaining or improving functionality. Change is the need of the every hour and variety is the spice of life, the combo offer of both can bring about vibrant changes in one’s life. Hence similarly one can bring the similar changes in the professional life specifically speaking HR. Outsourcing as a phenomenon is nothing new and has been going on since ages. But since 1990 the offshore outsourcing market has grown by leaps and bounds bringing it into scrutiny and speculations.
Stats says
A high-knowledge, multi-skilled workforce is the most important competitive resource available to organizations today. Instead of an economy organized around mass production, recent years have witnessed the rise of an economy dominated by technology and service industries that emphasize innovation, speed, cross-functionality, and strong customer relations.[/i][/b][/i][/b]
The lack of knowledge; skills and abilities in the current system is necessary to meet set organizational/individual goals or expected capability.
Outsourcing HR processes benefits [/b][/b]
Increased efficiency
HR infrastructure can be streamlined
Diverse HR services can be offered
Quality of HR services offered will be enhanced
Ensure legal compliance and avoid penalties
Enable decision making that is independent of employee factions and loyalties
Manage transformation or change easily in case of a spin-offs or acquisitions, with the additional and ready resources offered by 3 rd party providers
Reduce employer risk, by ensuring that no HR work is left undone
Save time and money that may have been spent on correcting HR errors and dealing with disciplinary problems
HR is an essential partner in developing and executing organizational strategy As is evident HR is something that is really critical to an organizations functioning. Human Resources (HR) responsibilities includes all the related functions that work towards employee well-being in the organization including payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.
The recent competitive challenges of the global marketplace are creating demand for Expert human resource outsourcing HRO providers in order to manage non-value adding administrative business function of their businesses thereby facilitating the businesses can concentrate on their core competencies.
Other outsourcing concerns include:
Security of critical data, employee privacy and of transactions
Resistance from within the organization
Lack of knowledge on vendors end
Issues with cultural mis-match
Having to manage a difficult relationship with a vendor etc
Nevertheless, it is a myth that none of these concerns can't be resolved at all. It is important therefore, that care be taken at the point of choosing a vendor, to choose one that addresses all of these concerns. One of the reasons to outsource HR operations is to streamline processes and make them more transparent to employees.
Thus, HR outsourcing can[/b][/b]
Help in structural reduction of the Human Resource Management (HRM) cost base, by identifying the non-value adding activities and eliminate the hidden HR operations costs.
Help in identifying the inefficient Human Resources (HR) Administration processes and HR practices.
Helps organization to focus on human resource performance
Help organizations to serve their employees better.
Many political parties in America have made outsourcing a major issue in their election campaigns and the fight between supporters and non supports of outsourcing seems to be as fresh as ever. On the brighter side, there is still ample concentration behind this to develop company information, evaluation of prospects as well as conducting performances to coordinate with the organization. By outsourcing them to offshore regions, fulfillment of needs is greatly addressed through the use of the advanced technologies and the Internet while managing their roles. Only those companies ready to address the necessary transformation of their HR processes will find that outsourcing will bring access to world-class processes, competitive advantage, and increased shareholder value. 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.