HR Outsourcing - The Emerging Trends
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Authors
Authors: Sanjib Dutta
Senior Faculty Member
ICMR (IBS Center for Management Research).
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The Indian Scenario Contd...
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The major HR functions companies outsource |
India as an HR outsourcing destination
India is emerging as a major player in HR outsourcing. Though there are hardly five to six names in this market, they are trying to make a mark for themselves and tap the potential of providing HR outsourcing services. Companies like India Life Hewitt are expanding their horizons by extending their services to the Asia-Pacific and Middle East region. However, overseas HR servicing companies are beginning to view the Indian market as a viable investment destination, where they can set up their operations and cater to the rest of the international market. The $450-million Exult Inc. started a 70-people outfit in Mumbai.
From the tactical and straightforward handling of payroll and benefits, HR services providers are moving into the strategic world of BPO. HR-enablers are helping HR managers free themselves from the routine jobs and work towards taking employee services to a higher level. India, with its intrinsic advantages such as low cost, ready pool of English speaking manpower and geographic positioning is emerging as a viable destination for HR outsourcing companies to set up their businesses. The HR outsourcing business opportunity is large and India is likely to emerge as a major player in this market. Patni Computer Systems is looking to leverage its work done on 401K pension plans to get into HR. Daksh has started payroll processing. The $5-billion payroll processor, Automatic Data Processing is also planning to start operations in Hyderabad.
The various HR processes that companies are venturing into include data entry, payroll processing, staffing, training, resume management, compensation, employee communications, pension plans, leave administration and HR data analytics. The popular delivery models for HR services outsourcing are self service, call center back up or shared services involving high caliber HR professionals who play a consultative role to line managers. When compared to other regions, India holds an advantage in HR outsourcing because of cost factor and education of the workers.