Outsourcing which has gained much hype in today’s ultra-modern society is not newborn but has been in practice since the 17th century.
However, the concept of service outsourcing came into vogue after the LPG movement in India (1990’s) and since then it has been thriving at an astronomical tempo.
Human Resource Outsourcing is defined as the process wherein an external vendor, a wizard in handling HR functions will help your company unravel it’s not so strategically critical HR functions in the utmost time and cost-effective ways.
It helps your HR managers, usually swamped with more of administrative HR functions, to take out a considerable amount of time and engage oneself in deciphering the other dicey affairs that directly impact the corporate performance.
The functions which are generally outsourced are Recruitment and Staffing, Payroll administration, Training and Development, Performance Appraisals, Employee Benefits Administration, Employee Logistics Management, and other HR functions.
Research estimates that 87% of the total funds of a mid-sized company are spent towards executing routine tasks, therefore, leaving just a meager sum left for other crucial operations.
The workload on HR managers has seemed to pile up over the years with literally no end at sight. The prodigies of the industry advise on remodeling the HR system via possible eliminations, automation and outsourcing.
But before getting any further it’s very important for you to be well versed with the interrogations, Why? and What? the reasons are, for you to opt to outsource.
Consideration of legal, procedural, legislative and other tax-related issues is imperative before you just stick your neck out for no good reason.
Few Global giants practicing HR outsourcing are
Initially, companies outsourced their HR functions to external agencies in order to cut down their operating costs. Nevertheless, with the heightened competition among companies across the globe, inclination towards HR outsourcing has increased due to its exposure to world-class practices, state of the art technologies, faster turnaround, so on and so forth.
In addition, it helps save time, energy and resources, cut down costs and improves efficiency and quality.
The outbreak of the COVID-19 pandemic has left the economy into a paralysed state. If you are the ones rehearsing the age-old manual HR processes, I feel sorry for your rotten luck but don’t lose hope because we can still fix this together.
While those of you who already had your HRIS stored in the cloud deserve a gentle pat on your backs for your diligent move.
This on-going crisis has triggered the necessity to deploy a flexible labour model. Lack of remote working capabilities viz. absence of laptop, proper internet connection, access to secured internal sites have instigated the need to have ready-to-work resources handy, as we might face such catastrophe in the times ahead.