HRO

RADHIKA
HUMAN RESOURCE OUTSOURCING
1)Human Resource outsourcing is the process in which
the organization uses the expert services of a third
party to take care of its HR functions while HR
management can focus on the strategic functions.
2)The functions that are typically outsourced are the
functions that need expertise, relevant experience,
knowledge, and best methods and practices.
3)A company may outsource a few or all of its HR
related activities to a single or combination of service
provides located in offshore destinations like India,
China, Philippines, etc.
4) In this sense the HR outsourcing service providing
firms or hr outsourcing company can be divided into
four categories depending on the services they offer as,
i. PEOs (professional employer organization)
ii. BPOs (business process organization)
iii.ASPs (application service providers)
iv. e-services.
5) In these categories the PEOs are the ones that assume
full responsibility of a company's hr functions where
as others such a BPOs, ASPs and e services provide
web based hr solutions like database maintenance, HR
data warehousing, maintaining records, developing
and maintaining hr software's etc.
HUMAN RESOURCE OUTSOURCING
ADVANTAGES:
Cost Saving Benefits
Expertise
Time Saving
Allows organizations to focus on core strategic areas
 Human Resource outsourcing
1) Helps to manage people, technology, resources strategically, enhance
services and mange costs more effectively.
2) Allows HR personnel to focus on strategic role away from routine
administration.
3) Organization can focus on higher value added activities while the
outsourcing provider takes care of day to day administration.
4) Critical internal resources can be devoted to company’s core
functions.
5) Thus outsourcing reduces the need for large capital expenditures in
non-core functions.
6) Strategy for reducing the capital intensity of the business
Outsourcing Disadvantages:

It may appear that the company have less control over
hr items.
The direct cost of outsourcing services seems to be a
lot.