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Outsourcing
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What is Outsourcing?

Outsourcing can be defined as the strategic use of outside resources to perform activities traditionally handled by internal staff and
resources.: Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers,
who become valued business partners. Sometimes outsourcing involves the transfer of employees from the company to the outsourcing
company.

Why do companies outsource?

Here are some common reasons:

* Reduce and control operating costs

* Improve company focus
* Gain access to world class capabilities
* Free internal resources for other purposes
* A function is time consuming to manage or is out of control
* Insufficient resources are available internally
* Share risks with a partner company
In the early days, cost or headcount reduction were the most common reasons to outsource. In todays world the drivers are often more
strategic, and focus on carrying out core value-adding activities in-house where an organization can best utilize its own core competencies.
Main factors influencing successful outsourcing The critical areas for a successful outsourcing program are:

*Understanding company goals and objectives

*A strategic vision and plan

*Selecting the right vendor

* Ongoing management of the relationships
* A properly structured contract
* Open communications with affected individual/groups
* Senior executive support and involvement
* Careful attention to personnel issues
* Short-term financial justification

Of all the business functions you could outsource, recruiting functions arent what first come to mind. Recruiting functions arent even on the top of the list when a
company is deciding which functions to outsource. However, recruiting can be a tougher task than marketing or sales, and there are good reasons for a company
to outsource its recruiting functions. Here are five good reasons to do so:

1.

Improving the quality of hires and candidates

This is one of the top two reasons why companies choose to outsource their recruiting, and its one of the biggest benefits of recruitment process outsourcing.
Just like how outsourcing your marketing to a marketing agency can improve brand awareness and your lead to conversion rate, outsourcing your recruiting
function to someone who is better at recruiting can improve the speed and the quality of your hires and candidates.

2.

Reducing cost
If recruiting is eating away at your bottom line because of a high turnover rate or because open positions are remaining open for a long time, then it might be
time to admit that something is wrong with your recruiting functions. Outsourcing your recruiting to an RPO provider will not only reduce costs, but will also fill
in those holes in your recruiting process that are ultimately costing you so much. Keep in mind that reducing cost doesnt necessarily meant reducing staff, but
improving whats happening with the people that you have.

3.

Creating a scalable recruiting platform

If your company is growing rapidly, then keeping up with your recruiting needs only gets more and more difficult. Your current recruiting staff has to focus on
filling open positions in other departments as well as meeting their own needs. By outsourcing your recruiting functions, you can have a solution that will grow
with your company and its recruiting needs, instead of scrambling all the time just to keep up.

4.

EEO Compliance Tracking

EEO compliance tracking is one of the toughest aspects of recruiting. Reports have to be filed regularly, and depending on the amount of recruiting your
company does, your staff could have a lot data to organize and to cram into these reports. Outsourcing your recruiting functions can help with EEO
compliance tracking in a number of ways, from choosing an applicant tracking system to help track your data to finishing reports like the Employer Information
Report EEO-1punctually and accurately.

5.

You Dont Know if Your Current Recruiting Functions are Working

It might seem like their working, especially if your current staff is doing its very best to manage bulging candidates pools and to fill positions as fast as they
can with the best people possible. But, if your company doesnt know if the staff can do better, or even what your recruiting functions are even doing, then
outsourcing may be a good idea. With outsourcing, youll be able to develop metrics, or at least have help in tracking things like turnover rate, speed of hire,
average interviewees per position etc. With solid metrics and solid reporting of those metrics, you can streamline your recruiting process and set goals for
improvement.

6. Stability of the Outsourcing Vendor

This is one of the tougher risks of recruitment process outsourcing to anticipate, as
stability can mean a lot of things. Perhaps the stability of the RPO vendor's personnel in
doing their job and maintaining professionalism. It could be the stability of your contact,
if he or she has things to deal with outside of the workplace (or is just plain kooky). It
could be the stability of the vendor itself. If things are unstable, it could be difficult to
pinpoint the problem and to work with it. Find a verified and credible RPO providers and
try a pilot project before you commit to a longer relationsip.
7. Poor Control of the Outsourced Process
With the RPO vendor coming into your organization, its easy to have too many cooks in
the kitchen. The outsourced process could then lose control with too many people trying
to take control. It's best to let the RPO vendor do its job, and perhaps have one or two
people within your organization make sure everyone listens and adapts to the outsourced
process.
8. It's Not a Recruiting Replacement
One thing you need to understand about RPO is that it's not to be considered as a quick

fix, as a way to cut your recruiting costs with nothing else to worry about. If you're
having problems with your recruiting, then outsourcing it all to an RPO provider won't
fix the problems. You will need to work with the RPO provider to fix those problems, not
simply pass them off to someone else.
9. Weak Terms and Conditions in the Outsourcing Contract
Contracts can really make or break a business relationship, as they try to cover all the
risks of recruitment process outsourcing. Make sure to read it to know what you're getting
into. If possible, have a lawyer with you when you sign the contract, or at least look it
over before you sign. If there's anything about the contract you don't like, try and get it
changed.
10. Different Corporate Values and Corporate Culture
This one will happen if you don't select the right RPO vendor, as the solution that arises
won't be a good one if corporate values and culture don't match. It's imperative that they
match in RPO, or else your new hires won't stick around, or your new recruiting process
won't be able to find who you need.
11. Expectations Weren't Specific or Realistic
One of the risks of recruitment process outsourcing is that companies expect too much, or
expect RPO to be some sort of magic wand that will make all hiring and recruiting
problems go away. To ensure success, make a list of all your recruiting pain points, and
establish a small number of key outcomes with metrics that relate to hiring quality, speed
and cost.
No Changes or Improvements Introduced .31
This is a risk of any service or attempt at a better solution. It might not work. Keep in
mind thought that if RPO didn't work for you, it doesn't necessarily mean that RPO is
terrible. Perhaps one of the other six risks came into play, like the vendor went way over
budget or had internal issues that affected how well they delivered.

Manpower Outsourcing is a solution to your labor-related problems like how to reduce manpower cost, how to recruit a correct person and many more. Basically
Manpower Outsourcing means when a company hires a third party to perform some of its tasks or to work on any particular project. Nowadays, lots of
organizations are following the concept of manpower outsourcing because of its benefits. Some of them are:
1. Cost-Effective It reduces the cost because the manpower hired are not permanent so you dont have any obligation to pay any incentives or pay
bonus, insurance, over-time and any other employee benefit in monetary terms.
2. Flexible The concept of manpower outsourcing is very flexible and totally restriction free, as you have the power to decide whom to hire, when to hire and for
how much duration.
3. Business Focus Once you appoint well qualified professionals in any particular project, you focus more on other business issues related to growth of the
company.
4. Time Saving - By getting the work done by professionals you can accomplish your goal or target in lesser time.
5. Remain Competitive You get special skilled and talented manpower which updates you with the current working policies and trends. Thus, boost up the
confidence and felling of competitiveness.
6. Manage the risks and problems efficiently With the help of well qualified manpower your efficiency increases which helps you in solving problems.
7. Productivity and Efficiency You get well trained experts and professionals which ultimately increases the productivity and efficiency of your company and your
employees.
8. Quality Manpower You are able to get almost all the qualities as per the demand of your project.
On a whole Manpower Outsourcing is one the best and effective way to get rid of recruitment problems. You can appoint skilled, qualified and efficient third party
to perform your tasks as per the current requirement and need of your organization or any particular project.
Due to the increasing trend of manpower outsourcing the demand of Manpower Outsourcing Consultancy Firms is also increasing. Outsourcing Manpower from
such firms makes your task of searching manpower quite easy and fast because these firms have candidates of various profile and qualities. And one the main
and important advantage is that you can get a guarantee and brief about his working. Thus, a Manpower Outsourcing Consultancy Firm can provide you with the
manpower to keep your organization strong and powerful in todays tough competition.

Outsourcing
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Benefits of Recruitment Process Outsourcing

.Highly skilled in-house recruitment team at a fraction of the cost

.Access to technology, expertise and talent pool database

Gives back time to time poor HR Managers by removing administration costs of dealing with multiple
.recruitment contacts

HR regains control of the recruitment process, costs and results which allows for improved decision
.making in both the long and short term

.Decrease hiring costs

.Reduce cycle time in filling positions

.Consistent best practices throughout the recruitment cycle

.More time to focus on your core competencies

.Access to a wider skilled data base

.Improved accountability and reporting

.Improvements in process are not lost

.Reduced salaries from improved market comparison and a more rigorous exception approval process

.Reduced salaries from enhanced non-salary employee benefit propositions

.Improved retention and candidate fit

.Reduced agency commissions due to increased internal resources and pre identified candidates