Several eyebrows have been raised at the mere mention of Human Resource Outsourcing. However, in the current scenario, if companies want to achieve the strategic goals envisioned by them, HR processes will have to be outsourced to service providers. HR Outsourcing speeds up the ability to focus on strategy and take quick and meaningful decisions.
Human Resources Outsourcing is getting outsourced to third party providers who can bring in the benefits of knowing the domain. Experts contribute to client success by increasing the efficiency and quality of their HR services. HRO service providers develop unique outsourcing strategies for clients that serve the long-term goals of the organization. The right outsourcing vendor will help streamline processes, reduce costs and optimize the clients’ workforce.
The activities covered under Human resource outsourcing include payroll management, training, staffing, benefits administration, travel and expenses management, retirement and benefits planning, risk management, compensation consulting, etc. Thus, HR Outsourcing is a huge prospect, perhaps larger than customer care as an opportunity.
HRO is also being touted as the next big thing for the Indian Subcontinent. Although Human resource outsourcing is a new phenomenon being introduced in companies at a global level, it is already estimated to touch $67 billion, which is 29 per cent of the global BPO pie. In fact, HRO is positioned to be the fastest growing Outsourcing segment over the next three years, with international players like Exult, Hewitt and Fidelity setting up their operations in India.
Outsourcing some of their activities allows HR professionals to move a more strategic role, performing higher value-added activities while the day-to-day administration is handled by the outsourcing provider. HR outsourcing is also a strategy to reduce capital expenditures in noncore functions. What have further added to the popularity of HR outsourcing are the speed, gain and flexibility it affords, three necessary factors to compete in today's business environment.
Thus, the benefit of HRO is in terms of cost savings, as well as, heightened strategic focus. Outsource to a company that has both knowledge and experience to meet your current needs and anticipate future ones.
