The fact that HR outsourcing is found to be a pathbreaking development towards achieving optimum levels in the business performance needs further endorsement. The processing of a better image for the enterprise by keeping the credentials undisturbed is considered a critical task. This article makes an attempt to locate the significance of `competency' building as a part of redefining the HR functions from a strategic perspective.

So much has been written based on surveys in recent times about the changing dynamics of corporate governance that relied on human intellect and energies. The findings are crystal clear about the fact that `human capital' alone could help in tilting the scales of balance in favor of good fortunes. The demand for HR professionals in Asia has been increasing by leaps and bounds as indicated by the hefty emoluments offered to them on par with other technocrats, says Towers Perrin, the US-based HR services firm.

It is also found that in countries like Taiwan, Japan, India, Australia, Argentina, Spain, Belgium and Venezuela, senior HR executives in companies with annual sales of at least $500 mn command compensation packages that are nearly half that of their Chief Executive Officers (CEOs) indicating the growing concern for HR services. It further conveys the need of channelizing HR services towards productive assignments in view of increasing share of human capital. There is a strong impression that the image enjoyed by the HR departments in the knowledge-based firms needs to be processed in tune with the changing times and is justified on many counts.

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