Hr Outsourcing - Opportunities and Challenges for India

HR OUTSOURCING: OPPORTUNITIES AND CHALLENGES FOR INDIA

HR OUTSOURCING: INTRODUCTION

If an organization lacks the skills and the expertise to tackle human resources, outsourcing HR services is the solution.

HR outsourcing can be mainly classified into two categories. Transaction and administration outsourcing services and consultancy outsourcing services. HR transaction outsourcing services include monthly requirements such as, payroll processing. HR consultancy services are some of the other services that can be outsourced.

WHY OUTSOURCING

Rapidly 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 a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner.

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