The strategic move to outsource the Human Resource (HR) functions, especially training and development, has gained momentum. Though training is crucial to business, it is not the core competence of most businesses. The key strategic issue in insourcing versus outsourcing training and development depends on whether a company can achieve competitive advantage by performing the training and development function internally on a continual basis, or would it gain more efficiency by simply outsourcing it.
Business
Process Outsourcing (BPO) in the last few years has
left an impact on the way companies do business. Today,
companies want to concentrate all their energy andmoney
into those processes, which are unique to them and
in which they have the requisite expertise. Leaner
organizations clearly define "what we are best
at" and the other non-core functions are left
to the external services that have an edge over these
functions. Here comes the role of BPO.
According
to a leading HR publication, outsourcing is defined
as "having an external vendor provide, on a recurring
basis, a service that would normally be performed
within the organizations."1 The company's
decision for outsourcing has strategic implications.
BPO brings innumerable benefits like concentration
on core business activities, cost-effectiveness, access
to world-class solutions and expertise, better utilization
of resources, better management of activities, evolution
of new ideas etc. These are all the consequences of
a good outsourcing strategy.
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