HR Outsourcing

ByManmeet, Masoom, Madhav, Jaspreet

GROUP
NO.
(9)
Members
GROUP MEMBER

MASOO
M
SHINGA

MANME
ET
SINGH

MADHA
V KUNDI

JASPREE
T SINGH

HIGHLIGHTS

Introduction To HR Outsourcing
Areas & Reason of Outsourcing
Types of HR Outsourcing
Process of HR Outsourcing
Advantages and Disadvantages
Problems
Conclusion to HR Outsourcing

Introduction
What is
Outsourc
ing?

INTRODUCTION
HR OUTSOURCING
A Working Definition of Outsourcing
Outsourcing the strategic use of outside resources to perform activities
traditionally handled by internal staff and resources Dave
Griffiths

Why Outsource?
Provide services that are scalable, secure, and efficient,
while improving overall service and reducing costs

VIDEO DEMONSTRARTION

INTRODUCTION
A Working Definition
Introduction
of Outsourcing
To HR Outsourcing
Services
COMPANY

OUTSOURCER

Organization
Service
Level
Level
Agreement Agreement

Outsourcing denotes the continuous

procurement of services from a third
party, making use of highly integrated
processes, organization models and
information systems.

Areas where HRO will work

Relocation
Recruiting/
Staffing
Competence
Development.

HRIS

Consultancy
and Training
Salary
Administrat
ion

Why do Companies Outsource?

What Is The Role Of a Manager in HR Outsourcing ?

Three things that managers do (Henry

Mintzbergs Nature of Managers Job)
Interaction (outsource)
Information gathering/processing
(outsource)
Decision-making and problem
solving (do not outsource)

Types & Process of Outsourcing

Types of outsourcing

Business process outsourcing (BPO)

BPO is a subset of outsourcing that involves the

contracting of the operations and responsibilities of
specific business functions or processes to a thirdparty service provider.

Types of outsourcing

Knowledge process outsourcing (KPO)

KPO describes the outsourcing of core business activities,

which often are competitively important or form an integral
part of a company's value chain. Therefore KPO requires
advanced analytical and technical skills as well as a high
degree of proprietary domain expertise

Types of outsourcing

Legal process outsourcing (LPO)

LPO refers to the practice of a law firm or corporation

obtaining legal support services from an outside law firm
or legal support services company. This process has been
marked by the practice of outsourcing any activity except
those where personal presence or contact is required.

Types of outsourcing

Recruitment process outsourcing (RPO)

Recruitment Process Outsourcing is a form

of business process outsourcing (BPO) where an
employer outsources or transfers all or part of its
recruitment activities to an external service
provider.

Types of outsourcing

Engineering process outsourcing( EPO)

EPO offers global consulting and outsourcing

services providing end-to-end services in the
areas of Engineering and Technical Process
Outsourcing.

Process Of HR Outsourcing

HR Outsourcing

Advantages of outsourcing

Cost
Effective

Skilled
Expertise

Time zone
difference

Focus on core
competencies

Increased
productivity
and Efficiency

Distribution of
risk

Improving
customer
service

Better
people
management

Access to
world-class
solutions

Disadvantages of outsourcing

Loss Of
Managerial
Control

Quality
Problems

Lack of
customer
focus

Hidden
Costs

Tied to the
Financial WellBeing of Another
Company

lose talent
inside within
your
company

Threat to
Security and
Confidentiality

Bad Publicity
and Ill-Will

Linguistic
barriers

Problems with outsourcing

Loss of Control
Increased cash outflow
Confidentiality and security
Selection of supplier
Dependent on service provider
Loss of staff or moral problems
Time consuming
Provider may not understand business environment
Provider slow to react to changes in strategy

CONCLUSION TO HR OUTSOURCING

Facts related to outsourcing

40% to 50% of the top 500 companies in the world

is leveraging on outsourcing for most of their
business processes.

current figures values this robust industry to a

staggering $20 billion USD.

On an average global outsourced projects involve

about 28% that belong to the hardcore IT sector, 11%
to finance sector, 15% to sales and marketing and 9%
from administrative sector. The remaining 22% belong
to many other different sectors such as consumer
distress calls, general data segregation jobs, tourism
etc.

Outsourcing Services

Payroll Administration
Benefits Administration
Workforce Administration
Leave Administration

Core HR Outsourcing Services

Talent Administration HR Outsourcing Services

Relocation and Handling Assignments

Performance Management and Training
Recruiting Administration
Compensation Administration

CONCLUSION

Training ,payroll , recruitment, taxation, and legal

compliance can be outsourced.
employee relations, HR planning, career management,
and performance appraisal should remain in house.
Thus HR outsourcing should be carried out in a controlled
way.

questions ? ? ? ? ?

Thank you