Human Resource Outsourcing in India
Future of HR outsourcing in India
HR is going to slowly but steadily become a part of business strategy. HR professionals will drive the initiatives of HRO, of course with support from top management. The time is now right for HRO to succeed in view of HRM being seen and treated as an important element of business resources in the service economy of today.
HR outsourcing is a relatively recent phenomenon at workplaces across the globe. Traditionally, many businesses started the “contract” system for their security services, canteen services, transport etc., which were “non – core” activities of the enterprise. These services were detached from actual businesses or business processes. HRO, in its orthodox form presence itself as a service provided who owns and performs activities / transactions/ processes that are intertwined with other business processes of the establishment. It is now viewed as a strategic business tool that can be used effectively to derived cost advantage and integration of services to get economies of scale and productivity improvements besides functioning as a HR brand builder. This article attempts to discuss HRO in Indian context and the possible future of HRO in the Indian business scenario. Certain preparatory actions are also prescribed to effectively used HRO as a strategic business tool.
HRO – HRM Architecture:
Today, as we have moved into service – economy, dealing with knowledge and knowledge workers is very important as human capital has become a critical success factor for organizations. HRM is seen as a distinct identity, separate from Administration and Facilities section of the establishment. This can be clearly seen from the importance being given to HRM Architecture. In addition to the traditional roles for HR, over the years, in the IT and ITes sectors, distinct roles have emerged such as corporate HR, business HR, generalist HR, techno – functional HR, etc. The job holders in these roles are expected to give
HR is going to slowly but steadily become a part of business strategy. HR professionals will drive the initiatives of HRO, of course with support from top management. The time is now right for HRO to succeed in view of HRM being seen and treated as an important element of business resources in the service economy of today.
HR outsourcing is a relatively recent phenomenon at workplaces across the globe. Traditionally, many businesses started the “contract” system for their security services, canteen services, transport etc., which were “non – core” activities of the enterprise. These services were detached from actual businesses or business processes. HRO, in its orthodox form presence itself as a service provided who owns and performs activities / transactions/ processes that are intertwined with other business processes of the establishment. It is now viewed as a strategic business tool that can be used effectively to derived cost advantage and integration of services to get economies of scale and productivity improvements besides functioning as a HR brand builder. This article attempts to discuss HRO in Indian context and the possible future of HRO in the Indian business scenario. Certain preparatory actions are also prescribed to effectively used HRO as a strategic business tool.
HRO – HRM Architecture:
Today, as we have moved into service – economy, dealing with knowledge and knowledge workers is very important as human capital has become a critical success factor for organizations. HRM is seen as a distinct identity, separate from Administration and Facilities section of the establishment. This can be clearly seen from the importance being given to HRM Architecture. In addition to the traditional roles for HR, over the years, in the IT and ITes sectors, distinct roles have emerged such as corporate HR, business HR, generalist HR, techno – functional HR, etc. The job holders in these roles are expected to give