Like any other market of today, the HR outsourcing market too has its own set of worries. While the supply side has too many service providers, with some even running loss-making HR contacts, the demand side has a large number of companies urgently looking for more efficient and cost-effective HR services. However, outsourcing experts have predicted that 2014 will be the year during which the demand for transactional HR processes will increase and more HR contracts will be signed.
Does your company wish to outsource HR services to India? If yes, then read up on the top five benefits that HR outsourcing can bring to your company:
1. Minimize HR costs
Outsourcing HR can help you successfully reduce and manage the cost of HR. Your organization can achieve over 20% of savings by employing self-utilising tools, standardizing HR processes and outsourcing. When your HR cost base is tightly controlled and efficiently managed, you can make better decisions about the relative allocation of resources. Outsourcing HR can prove to be extremely beneficial, if your company is making acquisitions, mergers or undergoing rapid changes in employee numbers.
2. Avoid making major investments in HR technology
By outsourcing HR to India, your company can steer clear of making expensive investments that are required in today’s HR technology. Instead of investing on that multi-million dollar HR software upgrade, you can invest your money into your firm’s core business activities. Some HRO service providers even offer their own HR platform, along with latest upgrades and services, thereby making it easy and cost-efficient for companies who outsource.
3. Come up with a winning HR strategy
Outsourcing HR processes can help you realign your HR and focus more on a HR strategy that supports your core business. Outsourcing can help you increase the proportion of the HR cost allocated to strategic HR and thereby reduce the proportion allocation to HR administration. With all your non-strategic HR processes outsourced, you will be able to respond quickly and effectively to the changes that take place within your organization.
4. Improve the quality of HR services
Outsourcing can help you improve the overall quality of HR services that you deliver to your managers and employees, by employing better service management techniques and tools. Outsourcing can give you access to superior change management skills along with policy harmonization, HR standardization and better HR customer interactions. If you were to do this on your own, it would be difficult.
5. Control legal risks and improve compliance
In the current era of increased regulation, it is becoming integral to control legal risks and improve compliance. When you hire an external service provider to handle your HR, you will be able to strength your compliance measures and effectively control legal risks with ease.
Can you think of any other benefit to add to the list? Have you outsourced HR services before? If yes, how did it go? Let us know, by leaving a comment in the box below. We, at Outsource2india love to hear from you!
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