Jilian Consultants Co., Ltd.
Jilian Consultants Co., Ltd.

HR Outsourcing Services In India

Jilian Consultants

What is HR Outsourcing Services?

When running an organization there are a numerous challenges to be faced in order to sustain and strive the business. HR Outsourcing Services is one of key importance for smooth functioning of operations. Most of the organizations today outsource HR services to India, as they do not have the expertise within the in-house HR services. The most important factor for organizations to choose HR outsourcing services is to save time and effort. Time and attendance, talent management, benefit administration is some of the key areas where human resource outsourcing takes initiatives to create time for one to focus on more strategic tasks. When one outsources the human resource work, the employees get access to online payroll vacations, anniversaries, and so on. This in turn builds trust and confidence on the part of the employers as the experts handling the HR are well versed in guiding the employees to excel in their professional graph.

HR outsourcing can be mainly classified into two categories. Transaction/administration outsourcing services and consultancy outsourcing services. HR transaction outsourcing services include monthly requirements such as, payroll processing. HR consultancy services are some of the other services that can be outsourced to India. Though organizations outsource transaction management and HR consultancy services to India, many organizations still take care of strategic and policy functions within their own organization. Organizations who wish to outsource their HR services to India can outsource HR services in different areas such as, administration of employee benefits, payroll processing, administration of fixed assets, management of hardware, database etc. Organizations outsourcing to India, mostly outsource their payroll services and training/survey requirements.

Why Outsource HR Services to India?

In a recent study, 80% of European and US outsourcing firms ranked India as their number one outsourcing destination. The National Association of Software & Service Companies (NASSCOM) also reported that almost half of all Fortune 500 companies chose to outsource software development to Indian outsourcing firms. Even though many other countries (including China, Mexico, Ireland and the Philippines) have emerged as major competitors, India has managed to out maneuver all others and emerge as the top outsourcing destination. Major factors such as favorable government policies, fast-developing infrastructure, and an immensely talented work force are responsible for the Indian IT outsourcing industry continuing to experience a tremendous growth rate of 25–30% per year.

If a company choses to outsource HR, the company shares responsibilities with the vendor, sharing information and control over the functions. If the company decides to completely outsource, the vendor takes on all HR responsibilities. The owner or HR manager in the original company takes on a new role, liaison with the vendor, focusing only on HR in order to manage the vendor-company relationship. Whether partially or completely outsourcing, companies frequently outsource the following HR functions:

  • To increase flexibility to meet needs such as, changing and new business conditions and for increasing orders for products, services and technologies.

  • To concentrate more on increasing customer satisfaction and on increasing the value of various business products / services.

  • Outsourcing HR services to India benefits directly from the skills, expertise, latest technology and professional services that India offers in the field of HR.

  • When one outsources HR services to India, it will help improving operating performance, risk management and control.

  • Outsourcing HR services to India can save on costs and at the same time get access to high-quality services.

  • Payroll functions can be completed on time more efficiently as the outsourcing partner can come up with ingenious ways of improving HR functions within the organization.

  • With strategic HR management, training programs and development programs can help retain the employees.

  • It helps public-sector organizations keep up with the latest technology and innovations

  • It improves risk management

  • It can help gain market access and business opportunities through the provider’s network

Types of HR Services in India

  • Background Screening: It involves personal verification and acknowledge check as a feature of the contracting procedure.

  • Payroll Services: This includes produce checks, handling taxes, and dealing with sick time and vacation time.

  • Employee Benefits: This includes health, medical and life insurance, cafeteria plans.

  • Risk Management:It includes workers’ compensation, dispute resolution, safety inspection, office policies and handbooks.

  • Remuneration Consulting:It helps arrange custom plans that can deal with different workers/ administrators/ colleagues.

  • Employee communications (EC): EC function includes engagement surveys, email campaigns, feedback loops, and recognition software and collaboration systems.

  • Reward and Incentive Management: This includes encouraging employees to go beyond their call of duty, like achievement of objective outcome with a motivating force for employees to work hard and show the desired behavior.

  • Performance Management: Organizational performance evaluation involves measurement at three levels, i.e. total organizational level, group or at departmental level, and individual employee level.

Employees are the cornerstones of any business. They also represent an enormous liability if the organization doesn't properly handle all the employment-related issues. This is where outsourcing comes as an easy and more efficient way of handling employees.

Depending on the business needs, strategies and requirements, HR Outsourcing services offer different solutions that can meet the unique needs of each business. Therefore, using human resource service firms can be a smart choice that businesses need to use to focus development resources to keep up with international integration especially large organizations, as they have to focus more on their core competencies. This, coupled with techno-structural changes has made the role of the HR-manager vital for the any organization.