As Charles Darwin once said, it is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change, HR must also evolve and transform. HR-Outsourcing can be tool towards accomplishing just that.
Traditionally the HR activities have been performed in-house, but the changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Companies now, be it a software company, a service provider or a manufacturing firm do have a common opinion, i.e., to focus on their core competency and let someone else do the rest in a more efficient and cost-effective manner. That is where HR outsourcing plays a pivotal role.
HR outsourcing as an activity has been prevalent in the US for a fairly long time. But it has gained momentum in India in recent years. The number of companies outsourcing HR activities continues to rise and the scope of outsourced HR activities continues to expand. HR outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll, benefits, education/training, recruiting personnel, etc.
HR outsourcing is one of the fastest growing BPO segments after customer care. According to a study sponsored by National Association of Software and Service Companies and conducted by consulting company Everest Group, the outsourcing industry has set itself the goal of lifting revenue almost five fold to $50 bn by the end of 2012 by tapping new markets.
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