...Definition of outsourcing 3 2. Functions outsourced by HR 3 3. Advantages of outsourcing HR Functions 4 3.1 Managing and minimising risk 5 3.2 Cost Savings 5 3.3 Efficiency and economies of scale 5 3.4 Professional Expertise 5 3.5 Improved Employee Morale 6 4. Disadvantage 6 4.1 Poor Performance and decline in quality 6 4.2 Distance and lowering moral 6 4.3 Recruitment Problems 6 4.4 Leak of important internal information 6 4.5 Perceived loss of power and control 7 4.6 Increased Direct Costs 7 5. e-HRM 7 5.1 Objective of e-HRM 7 5.2 Advantages of e-HRM 8 5.3 Disadvantages of e-HRM 8 6. Conclusion and Advice to the Client 8 1. Definition of outsourcing The Human Resource department is considered to be one of the highly accredited departments of the organization; these are the people who provide the working resource to the company and keeping the company afloat even in the worst economic downtime. The best way in which the HR can be managed is decided by the HRD. The ways in which the human resource management is done has changed considerably in the recent years. The HR activities and functions can now be delivered, not only by the specialised Human Resource professionals, but also through outsourcing (Ulrich 1996; Tremblay, Party and Lanoi 2008). The HR outsourcing can be defined as the purchasing of the HR functions and services from a third party supplier. HR outsourcing can also be defined as the process of subcontracting a process, such...
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...Phida HR OUTSOURCING The Human Resources department or support systems are responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations. A human resources department is a critical component of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws. Any mix-up concerning these issues can cause major legal problems for your business, as well as major employee dissatisfaction. But small businesses often don't have the staff or the budget to properly handle the nitty-gritty details of HR. Because of this, more and more small businesses are beginning to outsource their HR needs. HR outsourcing services generally fall into four categories: PEOs, BPOs, ASPs or e-services. The terms are used loosely, so a big tip is to know exactly what the outsourcing firm you're investigating offers, especially when it comes to employee liability. A Professional Employer Organization (PEO) assumes full responsibility for your company's HR administration. Business Process Outsourcing (BPO) is a broad term referring to outsourcing in all fields, not just HR. Application service providers (ASPs) host software on the Web and rent it to users--some ASPs host HR software. E-services are those HR services that are web-based. Both BPOs and ASPs are often referred...
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...Inside Job? A Study on the of Outsourcing Human Resources Departments Prepared by Nneka A. Gunn Report Distributed July 21, 2011 Prepared for Dr. Mike Chase Managing Human Resources MBA BUSM 533 – Group 13 This is to certify that this paper was constructed and written solely by Nneka Gunn INTRODUCTION In a world that is filled with financial turmoil and economic upheaval, companies are looking for ways to cut costs at every turn in order to maximize profits. This research paper will delve into the world of outsourcing. One may ask, “What is outsourcing?” Outsourcing in business is when an organization contracts or hires another company to perform duties and tasks or provide a service that is normally performed in-house, which offers access to skilled expertise, a manageable and variable cost structure, and opportunities for increased focus on an organizations’ core business. The idea of outsourcing is traced to have originated in the 1960s with the Electronic Data System. The history of outsourcing as a strategy shows that it developed from a need for specialized, lower cost labor; which makes outsourcing a great fit for small businesses that are often short of labor, and need low costs. Businesses can keep control of the training function, but gain a strategic partner that can address key needs at a reasonable cost. Human Resources (HR) is the fastest growing segment of the business process outsourcing sector. HR is heavily weighted with transactional...
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...Running Head: HR OUTSOURCING AT PEPSICO HR Outsourcing at PepsiCo HR Outsourcing We all are aware with the truth that Human resources are the most crucial assets of every organization as the success of organization depends upon the management of its human resources. Ensuring the satisfaction of employees requires expert human resources department that is in reality a costly affaire for most of the organizations and due to this in present most companies are making decision regarding outsourcing their human resources management functions from offshore destinations (HR Outsourcing, 2008). Basically in this process of HR outsourcing an organization generally make use of the services of a third party for taking care of its HR functions. An organization may outsource a little or all of its HR related activities from a particular or grouping of service provides situated in offshore destinations. Role of HR Outsourcing at PepsiCo In this stream of HR outsourcing, PepsiCo is also not left behind from it as HR outsourcing plays a prominent role in its business operations. For getting various advantages of HR Outsourcing PepsiCo had selected Hewitt Associates for a 10-year deal that concentrates on HR business process outsourcing services like workforce and benefits administration, payroll and contact centre support (Bednarz, 2005). This HR outsourcing deal of PepsiCo with Hewitt Associates also concentrates on the...
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...HR PRACTICES OF WIPRO STUDENT UNDERTAKING This is to certify that we have completed the Project titled “H R P r a c t i c e s o f W I P R O ” under the guidance of Prof Sana Danani in partial fulfillment of the requirement for the award of degree of Bachelor of Management Studies at Rizvi College of Arts, Seience & commerce. This is an original piece of work & we have not submitted it earlier elsewhere. ROLL NO. 105 86 100 89 71 NAME: Jyoti Singh Atul kumar Pandey Muzaffar Shaikh Asim Qureshi Jangle Sanchit SIGN ACKNOWLEDGEMENT We would like to thank my Project Guide Prof. Sana Danani for her immense guidance, valuable help and the opportunity provided to us to complete the project under his guidance. I would like to thank all faculty members of Rizvi College of Arts, Science & Commerce for guiding and supporting me in the completion of project from time to time. Last but not the least, my gratitude to great almighty and my parents without whose concerned and devoted support the project would not have been the way it is today. ROLL NO. 105 86 100 89 71 NAME: Jyoti Singh Atul kumar Pandey Muzaffar Shaikh Asim Qureshi Jangle Sanchit SIGN SUBJECT PROFESSOR (Prof. Sana Danani) CO-ORDINATOR (Furkan Shaikh) CERTIFICATE This is to certify that the project titled “ HR p r a c t i c e s o f W I P R O ” is an academic work done by the following student submitted in the partial fulfillment of the requirement for the award of the degree of bachelor of management...
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...OXFORD REVIEW OF ECONOMIC POLICY, VOL. 22, NO. 4 DOI: 10.1093/oxrep/grj029 OUTSOURCING AND OFFSHORING: IMPLICATIONS FOR PRODUCTIVITY OF BUSINESS SERVICES MARI SAKO Saïd Business School, Oxford1 This paper reviews the implications of outsourcing and offshoring for the productivity of business services in the UK. Official statistics indicate that business-service productivity has grown by over 20 per cent in the last 7 years at the same time as employment grew by 20 per cent. The paper considers possible factors that account for the simultaneous growth of employment and productivity. First, we discuss outsourcing and offshoring, and their role in enhancing productivity through greater specialization, standardization, and consolidation of business processes, and a shift to higher value-added services. Outsourcing of business services is interpreted as part of corporate restructuring, namely as the unbundling of corporate functions as well as vertical disintegration. Second, as some services become more like products, both low-skilled and high-skilled jobs are subjected to productivity growth through standardization and digitization. It is argued, however, that the future of business-service productivity is on a knife-edge, depending on the mix of two sources of productivity enhancement—namely greater standardization and capturing value from customized solutions. I. INTRODUCTION Services have become a dominant part of the UK economy, accounting for 66 per cent of GDP,...
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...Introduction | 4 | 3 | Recruitment Process Outsourcing: An Overview | 6-9 | 4 | Outsourcing Process Flowchart | 10 | 5 | Critical Requirement | 11 | 6 | Factors to be considered before selecting a Recruitment Consultant | 12 | 7 | Types of RPO | 13 | 8 | Benefits of RPO | 14-15 | 9 | Technique Use by RPO for Recruitment | 16 | 10 | Core and Non-Core Activities of Corporate HR | 17 | 11 | Choice of Outsourcing Model | 18 | 12 | Understanding Recruitment Process | 19 | 13 | Advantages of RPO | 20 | 14 | The ROI of RPO: Recruitment Expertise | 21-22 | 15 | RPO Process Model | 23 | 16 | The Big 3 Efficiency Metrics in Recruitment | 24-25 | 17 | Case Study | 26-29 | 18 | Conclusion | 30 | 19 | Bibliography | 31 | AKNOWLEDGEMENT I hereby thank Mrs. Renu Gupta (Mentor) for giving me an opportunity that led me to venture into an entirely new arena and discover the intricacies of recruitment process outsourcing world. It was during this project that I studied in greater details about the topic. During this journey I realized how different it is to practically implement the principals of management successfully. As I want to pursue a management degree in HR, this project was relevant to my future goals. Introduction Outsourcing the human resource (HR) processes is the latest practice being followed by middle and large sized organizations. It is being witnessed across all the industries. In India, the HR processes are being outsourced from nearly...
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...IP 2 Tonja A. Brooks AIU Online Abstract This paper attempts to develop a framework for interrelationships among human resources information systems (HRIS), outsourcing, and corporate culture. This research investigates impacts of outsourcing HRIS on corporate culture. In this paper, we hypothesize that Outsourcing corporate HRIS is less desirable (1) if the quality of product and customer service matters for a firm, (2) if an organization is concerned with a loss of intellectual property, and (3) if an organization requires maintenance of a distinctive, human resource utility activity that is capable of meeting the challenges of fast changing customer demands in a dynamic business environment. In addition, this paper argues companies must be aware of the total costs associated with HRIS before outsourcing its human resource functions. Finally, the impact on employee morale and implementation must also be considered. By outsourcing HRIS, managers will be able to spend more time and resources dedicated to an employee’s professional career development. Business Research for Decision Making – IP 2 Introduction There has been a tremendous amount of research and studies done on corporate culture, outsourcing, and HRIS; however, there have been only menial research and studies done on Outsourcing HRIS and the sense that it has on the corporate culture. Hagood and Friedman [9] argue that the need for an organization to measuring the performance of the HRIS in order...
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...consulting and outsourcing firm with the resources, expertise, and global reach to solve the most pressing and complex people challenges that organizations face today They employ the strongest team of professionals in the industry, who have access to the widest breadth and depth of research, platforms, and services in more locations and for more industry segments than any other human capital firm. Our singular focus is on our clients: They deliver distinctive value, top-rated customer service, and measurable business impact. Human Resources Consulting Services The importance of people to the global economy has never been greater. CEOs increasingly rate human resources issues among their top challenges and business priorities. To compete effectively, businesses need strategies for attracting, rewarding, retaining and motivating the best talent in their industry. Aon Hewitt consultants are helping companies solve some of their most complex people challenges. They work with clients to design incentive programs, manage pension risk, develop investment strategies, optimize organizational structures to improve business results and guide clients through retirement, pension and health care reform. No team is better equipped with industry-leading talent, proactive thought leadership and innovative solutions than Aon Hewitt. Hewitt Benefits Administration Whether your organization is a complex global enterprise or a growing mid-sized business, Aon Hewitt’s outsourcing solutions improve...
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...Development • Network Outsourcing Services • HR Outsourcing V. Popular destinations VI. Employment opportunities VII. Key players in the market a. Indian companies b. MNCs VIII. Global competition IX. Future/outlook I. Introduction: Late 90’s has opened a new chapter in Information Technology (IT) sector in India – Business Process Outsourcing (BPO), one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Cost conscious companies in the world to gain cost savings has set up their back office operations in India. The BPO segment, which was virtually non-existent till a few years ago, has risen to be a US $2 billion industry and IDC expects it to grow at a CAGR of 54 per cent till 2006 to reach US $12 billion. A major portion of the revenues today come from customer care and back office processing services, according to IDC’s report. II. What is BPO? BPO is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace. BPO is often divided into two categories: back office outsourcing which includes internal business functions such as billing or purchasing, and front office outsourcing which includes customer-related services such as marketing or tech support. Types of BPO: Generally outsourcing can be defined as - An...
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...Outsourcing Paper Outsourcing has been defined in many ways. According to one definition, outsourcing is defined as, "... A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally" (Dictionary.com, 2010, para. 1). In this paper I will discuss the rationale and challenges of outsourcing business functions to low-cost countries or firms. Many reasons can be attributed to outsourcing problems but the primary reason is cost. Rationale A strong rationale for outsourcing “…is that organizations have one or more non-core business functions” (Belcourt, 2009, p. 1). Of course, cost savings is a primary reason for outsourcing business functions. For example, in situations involving payroll, studies show outsourcing payroll can result in savings ranging from 10 to 20% more than two years or longer. Outsourcing also is helpful when there is an irregular need for a particular service (Belcourt, 2009). Outsourcing can keep from acquiring a full-time employee. Since employers cannot always “pursue excellence in all areas, many will focus on core competencies, such as customer service or innovation, and outsource secondary functions, such as benefits administration. Studies show that companies that outsource report reducing administrative tasks by more than half and increasing their strategic focus by 40%” (Belcourt, 2009, p. 1). Another outsourcing driver is technology. This can help especially...
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...used within BPO circles, each explained concisely. Business Application Outsourcing Company A (vendor) rents applications to Company B (user). Increasingly corporations are renting applications like enterprise resource planning, customer relationship management, messaging and collaboration, and e-business. The outsourcer provides the mission-critical enterprise application hosting and management. The goal is to relieve the corporation from day-to-day management and lower the total cost of ownership (TCO). The outsourcer hosts the software solution ensuring a preset level of performance and reliability. This is also termed application service provider (ASP) service. Business Process Outsourcing Business process outsourcing means examining the processes that compose the business and its functional units, and then working with focused service providers to both re-engineer and outsource these at the same time. BPO involves the full transfer of responsibility for functions such as transaction processing, policy servicing, claims management, HR, finance, and compliance to the outsourcing company. The outsourcing provider then administers these functions on their own systems to agreed service standards and at a guaranteed cost. Some of the BPO contracts call for performance-based payouts, tying vendor payments to business performance or overall cost savings. Business Process Offshoring Business process offshoring is the transfer of business tasks (medical transcription) or business...
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...The Knowledge Community HfS Research Collaborative Sourcing Intelligence& IT for Global Business Outsourcing Smart Governance Disruptive Technologies Insight. Advice. Benchmarking. Services State of the Outsourcing Industry 2013: Presentation to Genpact, March 5th 2013 Phil Fersht, Founder and CEO, HfS Research phil.fersht@hfsresearch.com Copyright © 2013 HfS Research Ltd. State of the industry 2013 - Agenda • Market Size and Forecast • Key Industry Dynamics • Competitive Landscape • Market Wrap Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 2 State of the industry 2013 - Intro • • • • • • Conducted December 2012 / January 2013 The largest-ever quantitative industry study covering both IT and business process outsourcing Respondents included 1355 stakeholders across enterprise buyers, service providers and consultant/influencer organizations The aim of the survey was to understand their views, observations and intentions for 2013 and beyond, when it comes to outsourcing IT and business processes Survey was conducted with the support of KPMG This presentation contains a set of slides with the top level results of the survey Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 3 Key Highlights: BPO Adoption and Outlook: • • • • • • • Deal activity rebounds Market forecasted to grow Attitudes towards BPO have gone “back to basics” Attitude of buyers...
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...Purpose The purpose of this analysis is to analyze and determine if outsourcing our business processes would be the best business decision that we can make for Smith’s Information Services. There will be many aspects of outsourcing our business processes to consider, which will be contained within this document. This document will also serve to thoroughly provide outsourcing options, all at differing price points and feature levels. We will analyze each of these outsourcing options and provide evaluation criteria as the basis for how the bids are evaluated. Also, if BPO is the direction that the company chooses to go, a timeline will also be crucial to adhere to, to ensure that the project is completed within a reasonable amount of time. Current Situation Smith’s Information Services is at a pivotal point in its business cycle. While we have enjoyed many very successful years, several aspects such as increased costs and competition are forcing us to change the way that we do business. We are having to endure ever-rising hardware and software costs, as well as increasing costs to run our 24/7 data center. While there is a huge potential for growth in our business, with growth also comes increased costs. It is crucial to stay on the fore-front of change to remain competitive in this fierce business environment. We are doing business today in an electronic global environment, where we no longer have to be concerned with a competitor down the street from us – we now...
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...BUSINESS PROCESS OUTSOURCING ABOUT BPO BPO stands for Business Process Outsourcing. There is a common misconception that B.P.O. and call centers, mean one and the same. A call centre is a remote location in India wherein calls made by customers abroad are routed to India by means of telecommunication equipments. This call is answered by call centre agents who are trained to speak in an accent which the customer can understand. This accent is commonly referred to as Neutral Accent Coming to the term Business Process Outsourcing, let us understand the term in a simple way by breaking it up. There is a business. Each business has got a process. A process means a specific way or method of doing a job. Those jobs which are routine in nature, are given to countries outside India, to save money by way of salaries. OVERVIEW OF VARIOUS CAREER OPPORTUNITIES IN THE BPO INDUSTRY * Voice Process (Inbound and Outbound) * Semi Voice Process or Back Office Support * Medical Transcription * Medical Billing * Data Entry * E-Mail Support * Knowledge Process Outsourcing * Recruitment Process Outsourcing * Education Process Outsourcing * Legal Process Outsourcing * Technical Writing * Content Writing * Web Designing ABOUT NASSCOM NASSCOM stands for National Association of Software and Servicing Companies It regulates the functioning of the IT and ITES industry IT means Information Technology which includes software programming and ERP...
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