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Author:kishor Jagirdar
Managing Director at Infopace management Pvt Ltd
Managing Director at Infopace management Pvt Ltd
HR Outsourcing - understanding the growing industry
HR Outsourcing Company
The task of a HR outsourcing company is to provide high potential personnel for short term projects with compatible payroll package to curb company costs and keep the headcount down. HR outsourcing company understands the needs for business efficiency by getting a short project done, the reason why HR outsourcing will play an important role in the coming days.
An HR outsourcing company can be divided basically into four categories as PEOs, BPOs, ASPs, or e-services based on the type of service it offers.
PEOs
A Professional Employer Organization assumes full responsibility of your company's human resources administration. This type of HR outsourcing company becomes a co-employer of your company's workers by taking full legal responsibility of your employees, including having the final say in hiring, firing, and the amount of money employees make.
BPOs
Business Process Outsourcing is a broad term referring to outsourcing in all fields, not just HR. This type of HR outsourcing company differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Specifically in HR, a BPO would make sure a company's HR system is supported by the latest technologies, such as self-access and HR data warehousing.
ASPs
Application service providers host software on the Web and rent it to users some ASPs host HR software. Some are well-known packaged applications (People Soft) while others are customized HR software developed by the vendor. These software programs can manage payroll, benefits, and more.
E-service
< SPAN style="FONT-SIZE: small; FONT-FAMILY: arial,helvetica,sans-serif">E services are this HR outsourcing company that is web based. Both BPO and ASP's can be referred as e-service companies.
A company which has decided to outsource its human resources has to decide as to which type of vendor to go for and which offshore destination to choose for outsourcing its human resource functions.
When you outsource HR functions, some HR Outsourcing company goes with the "all-or-nothing" approach, requiring that they handle all your HR functions or none at all. Some HR Outsourcing company is full-service and will provide these as well as additional services like on-call consultants, who will come in to train or even settle a dispute.
Human Resource Outsourcing is a process in which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service provides located in offshore destinations like India, China, Philippines, etc.
Human Resource Outsourcing that includes HR recruiting outsourcing helps cut costs, helps concentrate on core business and most importantly helps in ensuring employee satisfaction. By Human Resource Outsourcing companies can save huge amounts of money and be free of complications that are otherwise involved in maintaining an internal HR department. By doing so, companies can concentrate on their core competencies saving their valuable time and resources. Some industry sources believe that Human Resource Outsourcing is the future, making the next generation of in-house professionals simply integrators of the company's outsourced services.
The basic services offered by Human Resource Outsourcing firms may include:
Overseeing organizational structure and staffing requirements Recruiting, training and development Tracking department objectives, goals and strategies Employee and manager training Benefits administration • Employee orientation programs Businesses who outsource HR are typically small to midsize firms with between 25 and 1,500 employees.
Providing you with skilled professionals who are focused specifically on HR Helping you reduce and manage operating costs Improving employee relations If you need to hand off the entire HR function, consider a professional employer organization
If you don't need the comprehensive services, you can contract specific projects through an Human Resource Outsourcing firm to help you:
Implement a human resource information system Create or update employee handbooks and policy manuals Develop and implement a compensation program Create or review a performance appraisal system Write and update affirmative action plans Provide sexual harassment training Referrals, the yellow pages and the Web are the best resources for finding an HR outsourcing provider.
Whether you're looking to outsource the entire HR function, a portion of it or a specific project, it's good to know you've got options - lots of them. HR Outsourcing Services
An increasing number of major businesses are outsourcing their human resource operations today. Some of HR Outsourcing Services on offer are Payroll operations, benefits administration, employee data records and management, asset management services.
Developing and maintaining the HR processes and technologies necessary for effective delivery of HR Outsourcing Services requires a depth of human capital management expertise. Still, senior executives insist that delivering HR services well is mandatory.
HR Outsourcing Services generally fall into four categories: Professional Employer Organization, Business Process Outsourcing, Application service providers, or e-services. When you outsource HR functions, some HR Outsourcing Services go with the "all-or-nothing" approach, requiring that they handle all your HR functions or none at all.
Typical services include:
Payroll administration: Produce checks, handle taxes, and deal with sick time and vacation time. Employee benefits: Health, Medical, Life, 401(k) plans, cafeteria plans, etc. HR management: Recruiting, hiring, and firing. Also background interviews, exit interviews, and wage reviews. Risk management: Workers' compensation, dispute resolution, safety inspection, office policies and handbooks.
Some HR Outsourcing Services are full-service and will provide these as well as additional services like on-call consultants, who will come in to train or even settle a dispute.
HR Outsourcing Services help clients resolve this dilemma, by helping you outsource the activities that get in the way of the things necessary to support growth. HR Outsourcing Services are able to offer a complete range of HR outsourcing services along with a full complement of HR consulting services. Their operations serve organizations from 5,000 to 500,000 employees across virtually every industry.
One of the reasons to use HR Outsourcing Services is to streamline processes and make them more transparent to employees. Technology is usually a key in achieving it.HR Outsourcing Services also help preserve the sanctity of information between employee and employer. HR Outsourcing Services offer a strategic initiative to cut costs and access to intellectual capital not available in-house.
HR Outsourcing Services are becoming more sophisticated. CEOs are involved to ensure the long-term success of strategic offshoring decisions. On their part, suppliers understand that they must compete globally and that outsourcing will play a more transformational and strategic role for the client.
The HR department used to be treated as a cost-consuming function. CEOs understand that a Human Resources department is a critical component of employee well-being in any business, no matter how small. This has led to HR Outsourcing Services tasks like payroll, benefits, education raining, recruiting, personnel administration, organizational development and workforce management.
A Gartner Focus Report echoes that thought: "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 task of a HR outsourcing company is to provide high potential personnel for short term projects with compatible payroll package to curb company costs and keep the headcount down. HR outsourcing company understands the needs for business efficiency by getting a short project done, the reason why HR outsourcing will play an important role in the coming days.
An HR outsourcing company can be divided basically into four categories as PEOs, BPOs, ASPs, or e-services based on the type of service it offers.
PEOs
A Professional Employer Organization assumes full responsibility of your company's human resources administration. This type of HR outsourcing company becomes a co-employer of your company's workers by taking full legal responsibility of your employees, including having the final say in hiring, firing, and the amount of money employees make.
BPOs
Business Process Outsourcing is a broad term referring to outsourcing in all fields, not just HR. This type of HR outsourcing company differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Specifically in HR, a BPO would make sure a company's HR system is supported by the latest technologies, such as self-access and HR data warehousing.
ASPs
Application service providers host software on the Web and rent it to users some ASPs host HR software. Some are well-known packaged applications (People Soft) while others are customized HR software developed by the vendor. These software programs can manage payroll, benefits, and more.
E-service
< SPAN style="FONT-SIZE: small; FONT-FAMILY: arial,helvetica,sans-serif">E services are this HR outsourcing company that is web based. Both BPO and ASP's can be referred as e-service companies.
A company which has decided to outsource its human resources has to decide as to which type of vendor to go for and which offshore destination to choose for outsourcing its human resource functions.
When you outsource HR functions, some HR Outsourcing company goes with the "all-or-nothing" approach, requiring that they handle all your HR functions or none at all. Some HR Outsourcing company is full-service and will provide these as well as additional services like on-call consultants, who will come in to train or even settle a dispute.
Outsourcing Jobs
India
India is fast becoming a major outsourcing
center of the world. Of course with the rapid growth of the industry
there has been a distinct increase in the opportunities in outsourcing
jobs in India. Many believe that this will greatly help India improve
its economic and social stability. This in turn makes India an
increasingly appealing outsourcing destination and a market area with
real potential.
India is a talent-rich country that exports
software to some 95 countries around the world. India has a mature
industry with world-class systems and quality. Not only does India
offer technological promptness, flexibility, time-to-market and a
competitive advantage, it also offers world-class infrastructure and
numerous incentives for foreign investments.
India has high
tech facilities and the good infrastructure that is required for
setting up e.g. call centers. Also the endless pool of English
speaking workforce that provides good quality voice based services for
extremely low costs results in huge savings for companies. This is the
reason why most fortune 500 companies outsource jobs to
India.
The jobs created due to outsourcing jobs in
India are mainly back office and research and development
jobs such as call centers, transaction processing, software
development services, financial research, medical transcription, IT
consulting, product design, tax processing and others of the same
kind. These outsourcing jobs are mainly found in the
financial, insurance, technical, software and banking sectors.
A research provided by Boston consulting group estimates that
the number of jobs in India due to outsourcing will reach 30 million
by 2020. Considering the number of companies and entrepreneurs setting
up BPO operations in India the estimate seems realistic.
Cities
such a Bangalore, Chennai, Calcutta, Pune and Mumbai are really
jumping on the call center market boom and more and more Indian
companies have started investing in the industry. Outsourcing in India
is developing by the minute with new companies, big and small, setting
up shop at a very fast pace. As a result of the increase in the BPO
operations, India is also seeing an increase in IT consulting services
outsourcing as well as other outsourcing service companies that are on
the rise presently. The development of IT outsourcing jobs to
India over the last few years is definitely worth paying
attention to.
Although many companies came to India in order
to cut costs, the big pool of talent and innovation in Indian
business process outsourcing companies has forced
many firms to acknowledge that they have stayed for the quality and
speed.
Human Resource Outsourcing is a process in which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service provides located in offshore destinations like India, China, Philippines, etc.
Human Resource Outsourcing that includes HR recruiting outsourcing helps cut costs, helps concentrate on core business and most importantly helps in ensuring employee satisfaction. By Human Resource Outsourcing companies can save huge amounts of money and be free of complications that are otherwise involved in maintaining an internal HR department. By doing so, companies can concentrate on their core competencies saving their valuable time and resources. Some industry sources believe that Human Resource Outsourcing is the future, making the next generation of in-house professionals simply integrators of the company's outsourced services.
The basic services offered by Human Resource Outsourcing firms may include:
Overseeing organizational structure and staffing requirements Recruiting, training and development Tracking department objectives, goals and strategies Employee and manager training Benefits administration • Employee orientation programs Businesses who outsource HR are typically small to midsize firms with between 25 and 1,500 employees.
Providing you with skilled professionals who are focused specifically on HR Helping you reduce and manage operating costs Improving employee relations If you need to hand off the entire HR function, consider a professional employer organization
If you don't need the comprehensive services, you can contract specific projects through an Human Resource Outsourcing firm to help you:
Implement a human resource information system Create or update employee handbooks and policy manuals Develop and implement a compensation program Create or review a performance appraisal system Write and update affirmative action plans Provide sexual harassment training Referrals, the yellow pages and the Web are the best resources for finding an HR outsourcing provider.
Whether you're looking to outsource the entire HR function, a portion of it or a specific project, it's good to know you've got options - lots of them. HR Outsourcing Services
An increasing number of major businesses are outsourcing their human resource operations today. Some of HR Outsourcing Services on offer are Payroll operations, benefits administration, employee data records and management, asset management services.
Developing and maintaining the HR processes and technologies necessary for effective delivery of HR Outsourcing Services requires a depth of human capital management expertise. Still, senior executives insist that delivering HR services well is mandatory.
HR Outsourcing Services generally fall into four categories: Professional Employer Organization, Business Process Outsourcing, Application service providers, or e-services. When you outsource HR functions, some HR Outsourcing Services go with the "all-or-nothing" approach, requiring that they handle all your HR functions or none at all.
Typical services include:
Payroll administration: Produce checks, handle taxes, and deal with sick time and vacation time. Employee benefits: Health, Medical, Life, 401(k) plans, cafeteria plans, etc. HR management: Recruiting, hiring, and firing. Also background interviews, exit interviews, and wage reviews. Risk management: Workers' compensation, dispute resolution, safety inspection, office policies and handbooks.
Some HR Outsourcing Services are full-service and will provide these as well as additional services like on-call consultants, who will come in to train or even settle a dispute.
HR Outsourcing Services help clients resolve this dilemma, by helping you outsource the activities that get in the way of the things necessary to support growth. HR Outsourcing Services are able to offer a complete range of HR outsourcing services along with a full complement of HR consulting services. Their operations serve organizations from 5,000 to 500,000 employees across virtually every industry.
One of the reasons to use HR Outsourcing Services is to streamline processes and make them more transparent to employees. Technology is usually a key in achieving it.HR Outsourcing Services also help preserve the sanctity of information between employee and employer. HR Outsourcing Services offer a strategic initiative to cut costs and access to intellectual capital not available in-house.
HR Outsourcing Services are becoming more sophisticated. CEOs are involved to ensure the long-term success of strategic offshoring decisions. On their part, suppliers understand that they must compete globally and that outsourcing will play a more transformational and strategic role for the client.
The HR department used to be treated as a cost-consuming function. CEOs understand that a Human Resources department is a critical component of employee well-being in any business, no matter how small. This has led to HR Outsourcing Services tasks like payroll, benefits, education raining, recruiting, personnel administration, organizational development and workforce management.
A Gartner Focus Report echoes that thought: "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
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