Mapping Current Outsourcing Scenario

A FINAL REPORT
ON
“Mapping Current Outsourcing Scenario

prevalent in Bangalore”
In the partial fulfillment of the requirement of MBA Program of ICFAI Business School, Bangalore
Submitted to :
Ms. Kavitha Reddy
Vice President,
TeamLease Servies Pvt. Ltd, Bangalore.
Submitted by :
Hemang Patel
03BS0619
Batch of 2005
ICFAI Business School,
#64, 13th Cross, 6th Main,
J. P. Nagar, 3rd Phase,
Bangalore – 560078
Mapping the Current Outsourcing Scenario in Bangalore Final Report
Table of Contents
1. Preface……….…………………………………………………………….…….………..03
(I) About the Company…………………………………………………03
(II) About Human Resource/Employee Outsourcing…….05
2. Project Abstract………………………………………………….……….……….…..08
3. Graphical Analysis……..……………………………………………….…….……..12
(I) Sample Size…………………………………..…………………………12
(II) Primary Analysis………………………………..…………………...13
(III) Industry Analysis……………………………………..………………14
(IV) Secondary Analysis………………………………………………….21
(V) Collective Analysis…………….……………….……..……….……63
4. End Results…………………………………………………………………………..……00
5. Key Findings……………………………………………………………..……………….09
6. References……………………………………………………………….…..…………..09
7. Annexure..……..…………………………………………………………….……………10
By Hemang Patel
Preface
(I) About the Company :
TeamLease Services Pvt. Ltd. (TeamLease™) is a focused player in the Human Resources
Outsourcing space, providing a range of People Solutions to its client partners.
TeamLease works after bringing in the right combination of expertise facilitating

organizations to acquire flexible and permanent workforce, enhancing productivity & quality
and reducing employment related risk.
With a Pan India presence and offices in 7 major cities – Bangalore (Head Office), Chennai,
Delhi, Hyderabad, Kolkata, Mumbai, Pune and consistent increase in scale of operations,
TeamLease have become an efficient resource partner offering Staffing Solutions.
Established in 2001, TeamLease™ currently employs over 5000 Associates across industries
and functions. A combination of people, process and technology focus enables the company
to deliver the committed objective of value creation for the clients.
The company is active across all industry and functions with domain experts to anchor
specific industry verticals. Infact it is the single largest HR outsourcing service provider with
vertical specialization.
Focused approach, continuous investment to enhance operational and delivery standards,

implementation of Global Best Practices and Technology has enabled the company to attain
the leading position in the HR Outsourcing space.
The major services provided are :
1. Leasing
2. Payrolling
By Hemang Patel
3. Recruitment and
4. Turnkey Projects.
Temporary staffing catches on in India

ITP News Network/ Bangalore
TeamLease Services in Bangalore provides complete HR outsourcing services like payroll,
temporary staffing, recruitment, selection and training. The company has announced that
the number of temps working in various verticals has grown. Over the last 18 months,
TeamLease has placed 2,000 temps with companies such as Intel, SDG Software, Philips,
Pfizer, Thermax, Mindtree, Icope, Alcatel India, Dr Reddy’s Laboratories, SAP and Lufthansa
German Airlines. E I Dupont and Reliance Infocomm are the largest employers of temps
having 200 and 180 temps respectively. ITES/BPO, FMCG, manufacturing and financial
institutions are the segments hiring temps in India.
Ashok Reddy, managing director of TeamLease Services said, “Globally, temporary staffing
is a $140 billion industry with over 5 million people employed as temps. India’s potential is
about 8-10 million jobs.” He added that TeamLease aims to be the largest provider of
temporary leasing solutions for employees and clients. The company has opened offices in
Bangalore, Chennai, New Delhi, Hyderabad, Pune and Mumbai to broaden its reach.
TeamLease has an active database of one lakh temps and business alliances with Monster,
Naukri, Jobsahead and Jobstreet give it an additional database of 1.2 million résumés.
Reddy added, “In the prevailing uncertain labour market, companies are scared to go out
and hire. Even in these difficult times, businesses are savvy about using temp firms.”
Companies leasing employees prefer to take temps on project basis. Based on the
performance of the temp, he or she could become a permanent employee in the same
company over time.
Hypothetically if a company hires a person and calls the said person as temporary, it still
has to put him or her on payroll and insurance. Any temp on the rolls of TeamLease gets a
medical insurance cover of up to Rs 1 lakh and an accident cover of Rs 15 lakh. TeamLease
covers everything in its service fee, including insurance and employee benefits that account
for 30 percent of the temp’s cost to the company leasing the employee. “With the HR
outsourcing industry maturing, there is a clear demand for enhancing productivity, and to
provide cost-effective solutions,” said Reddy.
By Hemang Patel
(II) About Human Resource / Employee Outsourcing :
HR Outsourcing :
Any activity in which a company lacks time to deal with a situation or lacks internal
expertise and confidentiality and requires an unbiased opinion is then outsourced.
HR outsourcing can be segregated into two broad categories: Transaction and
Administration outsourcing and HR Consultancy. Transactional outsourcing is more of day-
to-day or month-to-month requirements, and constitutes services like payroll and benefits.
This kind of service is more prevalent in the Indian market. In the value chain, it falls at the
lower-end compared to HR consultancy, although it happens to be an essential function. It
is a fact that companies continue to manage the strategic and policy functions of their HR
departments in-house.
HR outsourcing can happen in various areas such as payroll, employee benefits
administration, fixed assets administration, network management, receivables
management, logistics management, hardware maintenance, telemarketing, call centres
and database management. In India, the most common processes outsourced are related to
training, payroll processing, surveys, benchmark studies, and statutory compliance.
HR Outsourcing - The Present Picture :
Today, very small companies (which do not have the competency to staff a full-fledged HR
department) and very large companies (who wish to outsource all routine HR processes so
that they can concentrate on core issues), are the ones that use HR outsourcing in a
significant way. Besides, many multinational companies are fast adopting these practices.
Estimates show that the latent size of HR outsourcing in India is about $2 billion with a
current market of $27 million and it is growing at a rate of about 50 per cent.
HR Outsourcing - The Future :
By Hemang Patel
Things are however expected to change with many mid-sized companies looking at HR
outsourcing. Research proves that the market for HR outsourcing in the Asia Pacific region
could is expected to touch $2.56 billion in 2004.
Industry experts estimate employee leasing to be $140 billion business worldwide, and it is
projected that in the near future about 2.5 to 3 percent of the workforce in the country will
be hired on a temporary basis.
HR Outsourcing – The Benefits :
 Improves Business Focus - It enables Organisation focus on core competencies, by

not being hassled by operational details and redirecting resources in core activities.
 Better Quality - Outsourced Vendors can provide the Organisations with superior
quality of work since they are the specialists, as this is their area of core
competency.
 Professional Expertise - The Vendors provide bench marking and best practices to
the Organisations through their experience.
 Reduced Cost - An Organisation can save on both transaction costs and fixed costs
by a reduction in headcount.
 Risk Sharing - Vendor shares the risk with the firms especially in the case of
idiosyncratic HR activities or activities which require rapid technology changes.
 Unbiased Third Party - Often internal HR managers are subject to office politics and
thus they may have biased views, in this case an outsourcing vendor can provide a
neutral advice.
 A list of companies doing HR Outsourcing Currently is as follows :
1. Cisco Manpower Hiring Outsourcing

2. GE Manpower Hiring Outsourcing
3. Philips Manpower Hiring Outsourcing
4. Honeywell Manpower Hiring Outsourcing
5. Reliance Infocomm Manpower Hiring Outsourcing
6. Alcatel India Manpower Hiring Outsourcing
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By Hemang Patel
7. Microsystems Manpower Hiring Outsourcing

8. i2 Technologies Manpower Hiring Outsourcing
9. LG Soft India Mmanpower Hiring Outsourcing, PF Management
10. Escosoft Manpower Hiring Outsourcing, Payroll Processing,
Execution of Training programmes & Survey conduction
11. Microsoft Manpower Hiring Outsourcing
12. Intel Manpower Hiring Outsourcing
13. Dr Reddy's Labs Manpower Hiring Outsourcing
14. Mindtree Manpower Hiring Outsourcing
15. Lufthansa BASF Manpower Hiring Outsourcing
16. Wipro SpectramindManpower Hiring Outsourcing
17. Intelenet Manpower Hiring Outsourcing
18. EXL Manpower Hiring Outsourcing
19. Daksh Manpower Hiring Outsourcing
20. Wipro Manpower Hiring Outsourcing
21. TCS Manpower Hiring Outsourcing
Project Abstract
By Hemang Patel
About the project :
The project deals with Mapping the current Outsourcing scenario prevalent in Bangalore and
is done using the “ Market Research ” Fundamentals and Concepts. This Descriptive type of
research is using Primary data collection method wherein tools like Research Questionnaire,
Mail Survey and Telephonic Interview are used.
To sum up, the purpose of this market research project is to, with an in-depth study,
understand and provide relevant, accurate and timely information about the current market
scenario and estimates (facts & figures) of Employee Outsourcing and related matters in the
city of Bangalore.
Objectives :
1. Prepare a comprehensive database containing Bangalore company details for

the Business Development Team of TeamLease.
2. Identify the Total Employee Outsourcing market and the percentage of

current market share held by TeamLease and its competitors in the Employee
Outsourcing sector for the year 2004.
To give an idea about the Process of the Project, below laid down is the flow of the work
which primarily initiates with :
a. Preparation of a comprehensive database containing Bangalore

company details:
The database has involved gathering of primary data of 1325 companies. These primary
data or company details is:
Name of the organisation

Address of the organisation
Telephone nos. of the organisation
E-mail address of the organisation
Name, telephone no. and e-mail address of the HR Executive(s)
Location and address of the Head Office.
By Hemang Patel
The source of this information has been :

1. Internet
2. Directories : Telephone as well as Commercial Firm
3. Project Guides.
This data is further converted into a database, by dividing it into 6 different sectors.
These sectors along with the number of companies are :
1. Manufacturing (inclusive of Pharmaceuticals) : 105

2. Retail / FMCG : 78
3. Finance / Insurance : 80
4. IT : 710
5. ITES/BPO : 297
6. Others : 55
b. Questionnaire Preparation :
After the preparation of the comprehensive database containing Bangalore company details
the Questionnaire was prepared as the concrete Market Research was nearing up.
The Questionnaire of both open-response and closed-response questions and majorly

focuses on collecting all the following information:
 With which company(s) / agency(s) has the company done employee

outsourcing?
 The number of people (staff) outsourced?
 Which category / function they belong to?
 What is their cost to company (CTC)?
 Do these company(s) / agency(s) provide the PF and ESI facilities to these
Outsourced Staff?
 What is the reason behind outsourcing?
 What parameters do they consider in a vendor when they outsource?
 What are the company’s future outsourcing plans?
 Name, phone no. and e-mail address of relevant contacts in the HR department
of each company, along with the respective HR Head and the Head of the
company/office.
 Location and address of the Head Office.
 This prepared Questionnaire is attached with this report in the Annexture.
By Hemang Patel
The completion of this step marks the completion of the groundwork required for the said
Market Research.
c. Requesting for response :
To mark the commencement of the Market Research process the step taken was of
sending a formal e-mail attached with the questionnaire to the contact sourced and
requesting for response.
All the 1325 companies were sent this e-mail along with the questionnaire on their official
e-mail addresses. Further to get better response, this e-mail was also sent to the sourced
e-mail of the Executives of each company.
It was noticed that the response to these requests has been luke warm as out of the total
mailed 1325 companies and their executives only 49 have responded till date.
With this low response the other pre-decided method of Telephonic Interview was brought
into play.
d. Telephonic Interview Method :

The telephonic interview data collection tool which requires taking telephonic interviews of
the HR Manager/HR Executive/Executive Incharge and getting the questionnaire filled has
proved the most effective and has been used for total data collection of all the other
sectors.
The companies that have been contacted, both by using e-mail contacts as well as
telephonic interviews are :
Sector Companies
Information Technology 710
Finance (Insurance & Banking) 80
Retail / FMCG 78
Manufacturing (inclusive of Parma) 105
ITES / BPO 297
Others 55
TOTAL 1325
Telephone nos. not existing, Company shifted/closed down or HR Manager/HR

Executive/Executive Incharge not available have been some responses received during
Telephonic Interview Method.
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By Hemang Patel
To sum up, the effective outcome is as follows :
Sector No. of companies Result

Information Technology 269 Questionnaire filled
Finance (Insurance and Banking) 21 Questionnaire filled
Retail / FMCG 23 Questionnaire filled
Manufacturing (inclusive of Parma) 51 Questionnaire filled
ITES / BPO 36 Questionnaire filled
Others 15 Questionnaire filled
TOTAL 415 Questionnaire filled
The next step towards completing the Market Research is :
e. Database Preparation :
After the collection of the required data, this data (Questionnaires) is now transferred in a
table format and made into a final database for current and future use.
f. Analysis :
Making the use of this database, now an analysis about the current Employee Outsourcing
market potential and the future trends and requirements is completed.
g. Results and Recommendations :
The winding up of the procedure is also completed, wherein a Report is prepared giving a
detailed explanation of the findings of this project.
Graphical Analysis
(I) Sample Size :
The Total number of Companies (sectorwise) considered for the Research are as following :
SECTOR Nos.
IT 269
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By Hemang Patel
Manufacturing 51
ITES/BPO 36
Retail / FMCG 23
Finance / Insurance 21
Others 15
TOTAL 415
Total Sample (no. of companies)
4%
5%
6%
IT
9%
Manufacturing
ITES/BPO
Retail / FMCG
12% Financ e / Insurance
64% Others
Inference :
From the above pie-chart we can see that the maximum number of companies considered
for research belong to the IT Sector (64%), followed by Manufacturing (12%), ITES/BPO
(9%), Retail / FMCG (6%), Finance / Insurance (5%) and Others (4%).
(II) Primary Analysis :
The motive of the Primary Analysis is to present the Current Scenario of the total market
understudy. The following data gives a crystal clear picture of the same.
Scenario Parameters Nos.

Companies Planning to do HR Outsourcing 45
Companies Currently doing HR Outsourcing 60
Companies Not doing HR Outsourcing at all 310
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By Hemang Patel
Total Current Scenario
11%
14% Planning to do HR Outsourcing
Currently doing HR Outsourcing
Not doing HR Outsourcing at all

75%
Inference :
The above pie-chart depicts that 75% of the companies understudy are not doing HR
Outsourcing at all, but it can be clearly seen that there is undoubtedly going to be a rise in
the total HR Outsourcing Market as 11% of the total sample considered are planning to do
outsourcing, where as there already exists 14% sample which is currently doing HR
Outsourcing.
(III) Industry Analysis :
This section gives an in-depth analysis of the total market by segregating it into different
industries.
To give an overview, the different sectors understudy are:
1. Finance and Insurance.

2. Information Technology.
3. Information Technology Enabled Services & Business Process Outsourcing.
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By Hemang Patel
4. Manufacturing (including of Pharmaceuticals and Consumer Durables).

5. Retail & Fast Moving Consumer Goods.
6. Others.
1. Finance and Insurance :
The existing scenario of HR Outsourcing market in Finance & Insurance Sector can be
analyzed by the following data.

Companie s Planning to do HR Outsourcing 0
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By Hemang Patel
Current Scenario (Finance & Insurance)
0%
5%
Planning to do HR Outsourcing
95%
Inference :
From the diagram it can be analyzed that this sector has a very less inclination towards HR
Outsourcing as only 1 company out of the 21 researched has done HR Outsourcing. Also it is
not a promising sector as there are no companies who are planning to do HR Outsourcing.
But the sector cannot be neglected fully as the Private Companies are studying and
researching on this topic seriously.
2. Information Technology (IT) :
The existing scenario of HR Outsourcing market in IT Sector can be analyzed by the

following data.

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By Hemang Patel
Current Scenario
14%
Planning to do HR Outsourc ing

15%
Currently doing HR Outsourc ing
71%
Inference :
This sector consists of 41 samples (15%) currently doing HR Outsourcing and 38 samples
(14%) planning to do outsourcing which makes us to infer that it is the most promising
sector for HR Outsourcing in Bangalore.
3. Information Technology Enabled Services/Business Process Outsourcing

(ITES/BPO) :
The existing scenario of HR Outsourcing market in ITES/BPO Sector can be analyzed by the
following data.

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By Hemang Patel
Current Scenario
13%
16%
71%
Inference :
The ITES/BPO Sector is also one of the rapidly growing sector in terms of HR Outsourcing. It
has a total potential of 29%, i.e 5 samples (16%) who are doing HR Outsourcing & 4
samples (13%) who are planning to do it.
4. Manufacturing (inclusive of Pharmaceuticals & Consumer Durables) :
The existing scenario of HR Outsourcing market in Manufacturing Sector can be analyzed by

the following data.

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By Hemang Patel
Current Scenario
6%
8%
86%
Inference :
From the pie-chart we can infer that this sector is also growing in terms of HR Outsourcing
but at a snail's pace. There are 4 samples (8%) already doing HR Outsourcing and 3
samples (6%) preparing to do the same.
5. Retail / FMCG :
Current Scenario
The existing scenario of HR Outsourcing market in Retail / FMCG Sector can be analyzed by
the following data. 0%
17%

Companies Currently doing HR Outsourcing 4 Planning to do HR
Companies Not doing HR Outsourcing at all 19 Outsourcing
Currently doing HR
Outsourcing
Not doing HR
Outsourcing at all
18
83%
By Hemang Patel
Inference:
The diagram represents that the Retail / Insurance Sector has a current base of 4 samples
(17%) who are into HR / Employee Outsourcing and the prospects in this sector looks quite
dim but the information cannot be taken as definite as the samples covered are relatively
less.
6. Others :
The existing scenario of HR Outsourcing market in Others Sector can be analyzed by the
following data.
Parameters Nos.
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By Hemang Patel
Current Scenario
0%
25%
75%
Inference :
This sector includes all the samples not coming under the aforementioned sectors and
currently has 5 samples (25%) involved in doing HR / Employee Outsourcing none planning
to do HR / Employee Outsourcing.
(IV) Secondary Analysis :
The Secondary Analysis aims at providing an in-depth description which supplement the
prime objective of the study. In other words, it offers an sectorwise overview of the
following :
(i) HR Functions Outsourced by the companies.

(ii) Categories of Outsourced Employees.
(iii) Functions of Outsourced Employees.
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By Hemang Patel
(iv) Number of Employees currently Outsourced by the companies.

(v) Average cost to company (CTC) of the Outsourced Employees.
(vi) The key Service Providers of the Human Resource / HR Outsourcing facility.
(vii) Facilites provided by the Service Providers to the Outsourced Staff.
(viii) Two most important Reasons for HR / Employee Outsourcing.
(ix) Number of Employees to be outsourced in the next 6 months.
(x) Parameters companies consider when selecting a vendor for HR / Employee
Outsourcing.
1. Finance :
(i) Functions outsourced by the companies :
The functions outsourced by finance sector companies can be identified by the following data :
Parameters Nos.
Recruitment & Selection 1
Payroll Services 3
Outsourced / Contracted Employees 1
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By Hemang Patel
Compensation & Benefits 0

Performance Management 0
Education & Training 0
Finance
0%
20% 20%
Recruitment & Selection
Payroll Services
Outsourced / Contracted
Employees
Compensation & Benefits
Performance Management
Education & Training
60%
Inference :
From the figure, it is clearly visible that the finance sector companies prefer to outsource
Payroll Services the most, followed by Recruitment & Selection and Outsourced / Contracted
Employees. Also evident is that Performance Management and Education & Training are not
outsourced at all.
(ii) Categories of Outsourced Employees :
The following data will offer an idea on what level are the outsourced employees placed :
Parameters Nos.
Higher Level 0
Middle Level 1
Lower Level 1
Shopfloor Level 0
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By Hemang Patel
Finance
0%
Parameters Nos.
HR 0% 1
Finance 1
Marketing 0
Other (Technical) 0
Higher Level
Middle Level
50% 50%
Lower Level
Shopfloor Level
Inference :
The pie-chart shows that companies in finance sector only prefer to outsource and place
employees at Middle & lower Level. No preference for Higher Level as well as shopfloor
level is in evidence.
(iii) Functions of Outsourced Employees :
The below cited statistics would help in understanding the functions that are provided to the
Outsourced Employees.
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By Hemang Patel
Finance
0%
0%
HR
Finance
50% 50%
Marketing
Other (Technical)
Inference :
From the above diagram we can infer that only the HR and Finance responsibilities are
delegated to the Outsourced Empoyees, keeping out-of-the-way the Marketing & Other
(Technical) responsibilities.
(iv) Number of Employees Currently Outsourced by the

companies:
The figure of the number of employees outsourced presently by the Finance Sector
Companies stands at 10 as it is observed that there is only one sample doing HR
Outsourcing in this sector.
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By Hemang Patel
(v) Average cost to company (CTC) of the outsourced

employees :
The aforesaid numbers about the average cost to company (salary) of the Outsourced
Employees being confidential information is not revealed.
(vi) The key service providers of the HR / Employee

Outsourcing facility :
The above mentioned facts about the Service Providers is not unveiled.
(vii) Facilities provided by the Service Providers to the

Outsourced Staff :
This information in not offered by the sample.
(viii) Two most important reasons for HR / Employee

Outsourcing :
The two vital reasons for HR / Employee Outsourcing can be recognized by the subsequent
data :
Parameters Nos.
Control Costs 1
Focus on core business 1
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By Hemang Patel
Reduce HR Administration function 0

Shrink Payroll and Accounting Costs 0
Head Count Approval 0
Screening for permanent Employment 0
Staffing Flexibility 0
Finance
Control Costs
0%
Focus on core business
Reduce HR Administration
function
Shrink Payroll and Accounting
50% 50%
Costs
Head Count Approval
Screening for permanent

Employment
Staffing Flexibility
Inference :
The pie-chart demonstrates that companies in finance sector prefer to outsource to control
costs and focus on core activities.
(ix) Number of Employees to be outsourced in the next 6

months :
From the samples under study a significant information available about the number of
employees to be outsourced stands at 10, which if focused can lead to an increase the
associates for the company.
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By Hemang Patel
(x) Parameters companies consider when selecting a vendor

for HR / Employee Outsourcing :
The following specifics will help in understanding about the Parameters companies consider
when selecting a vendor for HR / Employee Outsourcing :
Parameters Nos.
Reliable and consistent service quality 10
Range of services and recruitment support 8
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By Hemang Patel
Expertise in industry domain 4

Service Charges 9
Better outsourced employee management 5
National Presence 1
Finance
3%
14% Reliable and consistent service
26% quality
Range of services and
recruitment support
Expertise in industry domain
Service Charges
24%
Better outsourced employee
management
22% National Presence
11%
Inference :
Reliability and Consistency of service Quality & Service Charges, followed by Range of
Services & Recruitment Support are the chief reasons considered when weighing up a
vendor for HR / Employee Outsourcing.
2. I.T :
(i) Functions Outsourced :
The functions outsourced by IT sector companies can be identified with the following data :
Parameters Nos.
Payroll Services 14
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By Hemang Patel
IT
1%
7%
1%
26%
Payroll Services
Employees
49% 16%
Inference :
From the figure, it is clearly visible that the IT sector companies prefer to outsource the HR
Function of Outsourced / Contracted Employees the most, followed by Recruitment &
Selection and Payroll Services. Also evident is that Education & Training is also outsourced
but to a little degree.
(ii) Categories of Employees :
Parameters Nos.
Higher Level 2
Middle Level 33
Lower Level 29
Shopfloor Level 0
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By Hemang Patel
IT
0%
3%
Higher Level
45%
Middle Level
Lower Level
52% Shopfloor Level
Inference :
The pie-chart shows that companies in IT sector prefer to outsource and place employees
chiefly at Middle Level and Lower Level. A trend of outsourcing employees at Higher Level
is also noticed.
(iii) Functions of Employees :
Parameters Nos.
HR 4
Finance 0
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By Hemang Patel
Marketing 3
Other (Technical) 42
IT
8% 0%
6%
HR
Finance
Marketing
Other (Technical)
86%
Inference :
From the above diagram we can infer that the requirement of Technical Employees
(Software Developers) is the maximum and HR and Marketing responsibilities are also
delegated to the Outsourced Employees but to a fairly low extent.
(iv) Number of Employees Outsourced :
The total employees outsourced by the IT Sector Companies are 446, which is the
maximum figure when compared to other sectors.
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By Hemang Patel

employees :
The amount of the CTC available to the Outsourced Employees ranges from mimimum
Rs.3000/- To maximum Rs.50000/- Per Month which proves the fact that the IT Sector is
one of the most paying sector in Bangalore.

The Company(s)/Agency(s) with whom the company has done or doing employee
outsourcing are :
a) Systemlogic
b) Optimum Solutions
c) ABC Placements
d) IBM, Amway
e) Fidelity Investments
f) Span Systems
g) Lotus Corporation
h) Axxonet
i) G.D.Pai and Company.
(vii) Facilities provided by the Service Providers to
Outsourcing Staff:
The Services provided by the Company(s)/Agency(s) with whom the company has done or
doing employee outsourcing can be understood from the following data :
Parameters Nos.
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By Hemang Patel
Payroll Query Handling 5

Tax Consultancy 1
Online Support / Web Access 2
HR Administration 3
IT
27%
Payroll Query Handling
Tax Consultancy
46%
Online Support / Web

Access
HR Administration
18%
9%
Inference :
Payroll Query Handling is the most important feature offered by an agency, followed by HR
Administration, Online Support / Web Access and last but not the least Tax Consultancy.
(viii) Two most important reasons for employee outsourcing :
data :
Parameters Nos.
Control Costs 28
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By Hemang Patel

IT
Control Costs
17%
31%
3% Reduce HR Administration
function
9%
Costs
Head Count Approval
3%
11% Employment
26% Staffing Flexibility
Inference :
The pie-chart demonstrates that companies in IT Sector prefer to outsource importantly to

control costs, focus on core activities and to enjoy the benefits of staffing flexibility.
1. No. of employees to be outsourced in the next 6 months :
From the samples under study a significant information available about the number of
employees to be outsourced stands at 351, which if focused can lead to an increase the
associates for the company.
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By Hemang Patel
2. Parameters companies consider when selecting a vendor

for Employee Outsourcing :
The following specifics will help in understanding about the Parameters companies consider
when selecting a vendor for HR / Employee Outsourcing :
Parameters Nos.
Service Charges 177
National Presence 9
IT
1% Reliable and consistent

11%
service quality
30% Range of services and
recruitment support
Expertise in industry
domain
28% Service Charges
Better outsourced
employee management
15%
National Presence
15%
Inference :
Reliability and Consistency of service Quality & Service Charges, followed by Range of
Services & Recruitment Support and Expertise in Industry Domain are the key reasons
considered when assessing a vendor for HR / Employee Outsourcing.
3. ITES / BPO :
The functions outsourced by ITES/BPO sector companies can be identified with the following
data :
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By Hemang Patel
Parameters Nos.
Payroll Services 0
ITES / BPO
0% 13%
25%
0%
Payroll Servic es
Employees
0%
62%
Inference :
From the figure, it is clearly visible that the ITES/BPO sector companies prefer to outsource
the HR Function of Outsourced / Contracted Employees the most (62%), followed by
Recruitment & Selection (25%) and Education and Training (13%). Also evident is that
Performance Management & Compensation and Benefits are not at all outsourced.
Parameters Nos.
Higher Level 0
Middle Level 3
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Lower Level 3
Shopfloor Level 1
ITES / BPO
0%
14%
43% Higher Level

Middle Level
Lower Level
Shopfloor Level
43%
Inference :
The pie-chart shows that companies in ITES/BPO sector prefer to outsource and place
employees majorly at Middle Level and Lower Level. It is also noticed that Shopfloor level
employees form 14% of the total outsourced employee market in the ITES/BPO industry.
(iii) Functions of Employees:
Parameters Nos.
HR 0
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Finance 2
Marketing 1
Other (Technical) 2
ITES / BPO
0%
40% 40%
HR
Finance
Marketing
Other (Technical)
20%
Inference :
From the above diagram we can infer that the requirement of Finance as well as Technical
Employees is the highest and Marketing responsibilities are also delegated to the
Outsourced Employees but to a reasonably low extent.
The total employees outsourced by the ITES/BPO Sector Companies are 110, which is a
comparatively respectable figure when compared to other allied sectors.
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employees :
Rs.10000/- To maximum Rs.40000/- Per Month which proves the fact that the ITES/BPO
Sector is mounting at rapid pace.

outsourcing is :
1. Jobstreet Pvt. Ltd. ( www.jobstreet.com )
(vii) Facilities provided by Ageny(s) / Company(s) to

Outsourcing Employees :
The Services provided by the Company(s)/Agency(s) with whom the company has done or
doing employee outsourcing can be understood from the following data :
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By Hemang Patel
Parameters Nos
Tax Consultancy 0
Online Support / Web Access0
HR Administration 0
ITES / BPO
0%
0%
0%
Tax Consultancy

Access
HR Administration
100%
Inference :
The pi-chart prove the fact that Payroll Query Handling is the most important feature
offered by an agency.
data :
Parameters Nos.
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Control Costs 5
ITES / BPO
Control Costs

25%
42% function
Shrink Payroll and
0%
Accounting Costs
0% Head Count Approval
0%
8%
Employment
25%
Inference :
The pie-chart displays that companies in ITES/BPO Sector have a preference to outsource
prominently to control costs, focus on core activities and to enjoy the adavantage of staffing
flexibility.
(ix) No. of employees to be outsourced in the next 6 months :
The aforesaid statistics about the Number of Employees to be Outsourced in the subsequent
months being confidential information is not revealed.
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The following details will help in understanding about the Parameters companies consider
when deciding on a vendor for HR / Employee Outsourcing :
Parameters Nos.
Service Charges 19
National Presence 3
ITES / BPO
4%
10% Reliable and consistent
29%
service quality
recruitment support
Expertise in industry
23% domain
Service Charges
Better outsourced
18% employee management
Inference :
Reliability and Consistency of service Quality & Service Charges are the core reasons
4. Manufacturing :
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The functions outsourced by Manufacturing sector companies can be identified with the
following data :
Parameters Nos.
Payroll Services 0
Manufacturing
0%

33%
Payroll Services
Outsourc ed / Contracted
Employees
67% 0% Performance Management
Inference :
From the figure, it is clearly visible that the Manufacturing sector companies prefer to
outsource the HR Function of Outsourced / Contracted Employees the most (67%), followed
by Recruitment & Selection (33%). Also witnessed is that Payroll Services, Performance
Management, Compensation and Benefits & Education and Training are not at all
outsourced.
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Parameters Nos.
Higher Level 1
Middle Level 3
Lower Level 3
Shopfloor Level 0
Manufacturing
0%
14%
43% Higher Level

Middle Level
Low er Level
Shopfloor Level
43%
Inference :
The pie-chart shows that companies in the Manufacturing sector prefer to outsource and
place employees equally at both Middle (43%) as well as Lower Level (43%). It is also
noticed that Higher level employees form 14% of the total outsourced employee market in
the Manufacturing industry.
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Parameters Nos.
HR 1
Finance 1
Marketing 3
Other (Technical) 2
Manufacturing
14%
29%
14% HR
Finance
Marketing
Other (Technical)
43%
Inference :
From the above diagram we can infer that the requirement of Marketing (43%), as well as
Technical Employees (29%) is the highest & HR and Finance responsibilities are also
delegated to the Outsourced Employees but to a relatively low extent.
(iv)Number of Employees Outsourced :
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The figures about Employees Outsourced by the Manufacturing Sector Companies are not
revealed.

employees :
Rs.10000/- To maximum Rs.45000/- Per Month which shows that the manufacturing
sector cannot be ignored.

The records about Company(s)/Agency(s) with whom the company has done or doing
employee outsourcing is not made known.

Outsourced Staff :
The details about Facilities provided by the Service Providers to Outsourced Staff
is not publicized.
(viii) Two most important reasons for employee

outsourcing :
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data :
Parameters Nos.
Control Costs 1
Manufacturing
13% 13% Control Costs

13%
function
0% Shrink Payroll and Accounting
0% Costs

24%
Employment
Inference :
The pie-chart exhibits that companies in Manufacturing Sector have an inclination to

outsource notably to focus on core activities and to trim down HR Administration.
(ix) No. of employees to be outsourced in the next 6

months :
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The aforementioned statistics about the Number of Employees to be Outsourced in the

succeeding months being confidential information is not revealed.
(x)Parameters companies consider when selecting a vendor

The following particulars will help in understanding about the Parameters companies
consider when picking on a vendor for HR / Employee Outsourcing :
Parameters Nos.
Service Charges 7
National Presence 1
Manufacturing
2%
12%
Reliable and consistent service
quality
32%
recruitment support
17%
Service Charges

management
National Presence
20% 17%
Inference :
Reliability and Consistency of service Quality & Service Charges alongwith Range of services
and Recruitent Support & Service Charges are the reasons considered when assessing a
vendor for HR / Employee Outsourcing.
5. Retail / FMCG :
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The functions outsourced by Retail/FMCG sector companies can be identified with the
following data :
Parameters Nos.
Payroll Services 1
Retail / FMCG
0%
0% Recruitment &
0% Selection
Payroll Services
29%
Outsourced /
Contracted Employees
Compensation &
57%
Benefits
Performance
14%
Management
Inference :
From the figure, it is clearly visible that the Retail/FMCG sector companies prefer to
outsource the HR Function of Outsourced / Contracted Employees the most (57%), followed
by Recruitment & Selection (33%). It is important to note that this is the sector that also
prefers to outsource Payroll Services the most when compared with other sectors. Also
witnessed is that Performance Management, Compensation and Benefits & Education and
Training are not at all outsourced.
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The following data will present an idea on what level are the outsourced employees
positioned :
Parameters Nos.
Higher Level 0
Middle Level 0
Lower Level 3
Shopfloor Level 2
Retail / FMCG
0%
0%
40% Higher Level

Middle Level
Lower Level
60% Shopfloor Level
Inference :
The pie-chart shows that companies in the Retail/FMCG sector prefer to outsource and place
employees at Lower Level (60%) the most followed by the Shopfloor Level (40%). It is also
noticed that no Higher level employees and Middle Level Employees are outsourced.
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Parameters Nos.
HR 0
Finance 0
Marketing 1
Other (Technical) 0
Retail / FMCG
0%
0%
0%
HR
Finance
Marketing
Other (Technical)
100%
Inference :
From the above diagram it is crystal clear that only Marketing people are outsourced in the
Retail/FMCG Sector. The Finance, HR and Technical functions are not delegated to
outsourced employees.
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By Hemang Patel
The total employees outsourced by the Retail/FMCG Sector Companies are 212, which is a
relatively highly regarded figure if compared to other sectors.

employees :
The statistics on this issue are covered.

outsourcing is :
1. Monster India Pvt. Ltd. (www.monsterindia.com)
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By Hemang Patel

Outsourced Staff :
are as follows :
Parameters Nos.
Tax Consultancy 2
HR Administration 1
Retail / FMCG
17% 17%
Tax Consultancy
Online Support / Web Access
33% 33% HR Administration
Inference :
The pie-chart proves the fact that both Payroll Query Handling & HR Administration are the
secondary facilities provided by the Service Providers after Tax Consultancy & Online
Support/Web Access facilities which are the most vital features offered by an agency.
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By Hemang Patel
data :
Parameters Nos.
Control Costs 2
Retail / FMCG
Control Costs
0% 17%
0% Focus on core business
0% 33%
function
Shrink Payroll and
17%
Accounting Costs
Head Count Approval

Employment
33%
Inference :
The pie-chart exhibits that companies in Retail/FMCG Sector have an inclination to

outsource notably to focus on core activities and control costs.
(ix) Number of employees to be outsourced in the next 6

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By Hemang Patel
months :
The aforementioned figures about the Number of Employees to be Outsourced in the

successive 6 months being confidential information is not revealed.

Parameters Nos.
Service Charges 5
National Presence 3
Retail
Reliable and consistent

13% service quality
22%
Range of servic es and
recruitment support
17%
Service Charges
17%
Better outsourc ed employee
management
22% 9% National Presence
Inference :
and Recruitment Support & Better Outsourced Employee Management are the reasons
6. Others :
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By Hemang Patel
The functions outsourced by Retail/FMCG sector companies can be identified with the
following data :
Parameters Nos.
Payroll Services 1
Others
0%
0%
0% Recruitment & Selection
25%
Payroll Services
Employees
62% 13%
Inference :
From the figure, it is clearly visible that the Other sector companies prefer to outsource the
HR Function of Outsourced / Contracted Employees the most (62%), followed by
Recruitment & Selection (33%). Like Retail/FMCG sector this sector also prefers to
outsource Payroll Services (13%). Also witnessed is that Performance Management,
Compensation and Benefits & Education and Training are not at all outsourced.
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By Hemang Patel
positioned :
Parameters Nos.
Higher Level 1
Middle Level 1
Lower Level 3
Shopfloor Level 0
Others
0%
20%
Higher Level
Middle Level
Lower Level
60% 20% Shopfloor Level
Inference :
The pie-chart shows that Other sector companies prefer to outsource and place employees
at Lower Level (60%) the most, followed by the Higher Level and Middle Level which have
an equal distribution (20%). It is also noticed that no Shopfloor Level Employees are
outsourced.
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Parameters Nos.
HR 0
Finance 0
Marketing 1
Other (Technical) 3
Others
0%
0%
25%
HR
Finance
Marketing
Other (Technical)
75%
Inference :
From the above diagram it is crystal clear that Technical personnel currently are having a
high demand, followed by Marketing in the Other sector companies. The Finance and HR
roles are not delegated to outsourced employees.
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By Hemang Patel
The figures about Employees Outsourced by the Other sector companies are not made
public.

employees :
Rs.5000/- To maximum Rs.40000/- Per Month which is a substantiation that the Other
sector companies cannot be overlooked.

The information about Company(s)/Agency(s) with whom the company has done or doing
employee outsourcing is not made known.
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By Hemang Patel
Outsourced Employees :
are as follows :
Parameters Nos.
Tax Consultancy 1
HR Administration 1
Others
25% 25%
Tax Consultancy

Access
HR Administration
25% 25%
Inference :
The pie-chart proves the fact that all the four facilities provided by the Service Providers to
Outsourced Employees have an equal preference.
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By Hemang Patel
data :
Parameters Nos.
Control Costs 2
Others
Control Costs

29% 29%
function
Costs
0%
Head Count Approval
0%
14% 14% Screening for permanent
Employment
14% Staffing Flexibility
Inference :
The pie-chart exhibits that Other sector companies have an inclination to outsource notably
to control costs and to take the benefit of Staffing Flexibility.
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By Hemang Patel
(ix) No. of employees to be outsourced in the next 6 months :
The figures about Employees to be Outsourced by the Other sector companies in the
following 6 months are not offered.

Parameters Nos.
Service Charges 10
National Presence 2
Others
Reliable and consistent

6%
3% service quality
29%
recruitment support
29%
Service Charges

15% management
National Presence
18%
Inference :
and Recruitment Support & Expertise in industry domain are the reasons considered when
assessing a vendor for HR / Employee Outsourcing.
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(V) Collective Analysis :
The Collective Analysis here is given by summing up data from all the sectors together,
and is intended to provide an absolute representation of the current HR/Employee
Outsourcing Scenario.
The functions outsourced by all sector companies taken together can be identified with the
following data :
Parameters Nos.
Payroll Services 19
Total
6%
1%
1%
26% Recruitment & Selection
Payroll Services
Employees
50% 16%
Performanc e Management
Inference :
Taking all the sector companies collectively, from the figure, it is unmistakably evident that
companies outsource the HR Function of Outsourced / Contracted Employees (50%) the
most , followed by Recruitment & Selection (26%),Payroll Services (16%), Education and
Training (6%) and last but not the least Performance Management & Compensation and
Benefits (1% each).
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By Hemang Patel
positioned by all sector companies as a whole :
Parameters Nos.
Higher Level 4
Middle Level 41
Lower Level 42
Shopfloor Level 3
Total
3% 4%
Higher Level
Middle Level
47% 46% Lower Level
Shopfloor Level
Inference :
Considering all the sector companies as a group, from the pie-chart, it is evidenced that
companies prefer to outsource and place employees at Lower Level (47%) the most,
followed by Middle Level (46%), Shopfloor Level (3%) and finally at Higher Level (3%).
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By Hemang Patel
Outsourced Employees by all sector companies totally.
Parameters Nos.
HR 6
Finance 4
Marketing 9
Other (Technical) 49
Total
9%
6%
HR
13%
Finance
Marketing
Other (Technical)
72%
Inference :
Taking all the sector companies together, from the above diagram, it is crystal clear that
Technical personnel (72%) currently are enjoying quite a high demand in the market,
followed by Marketing (13%), HR (9%) and ultimately Finance personnel.
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By Hemang Patel
The following statistics will help in understanding the total number of Employees Outsourced
by all the sectors presently.
Parameters Nos.
Finance 10
IT 446
ITES / BPO 110
Manufacturing NA
Retail / FMCG 212
Others NA
Total
0%
1%
27%
Finance
IT
ITES / BPO
0%
Manufacturing
58%
Retail / FMCG
14%
Others
Inference :
The above figure proves that 58% of the total employees outsourced belong to the I.T
sector which makes us believe it as a sector with the highest potential. It is also observed
that the Retail/FMCG Sector outsources 27% of total outsourced employees requirement,
ITES/BPO outsources 14% of total outsourced employees requirement, and Finance
outsources 1% of total outsourced employees requirement.
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By Hemang Patel
Also noted is that the Manufacturing Sector & Others sector do not form a part of the pie-
chart as figures about Employees Outsourced are not revealed by the same.

employees :
After comparing the sectors it is spotted that CTC of the outsourced employees in the IT
sector is both Highest (Rs.50000/- per month) as well as lowest (Rs.3000/- per month). The
ITES/BPO Sector doesn’t bother to pay Rs.10000/- per month as its minimum limit and
Rs.40000/-per month maximum. The minimum & maximum CTC in the Manufacturing
Sector & Other Companies sector is Rs.10000/- per month and Rs.5000/- per month
respetively & Rs.45000/- per month and Rs.40000/- per month respectively.
The figures about Finance sector and Retail/FMCG sector are not offered.

The following is the list of Company(s)/Agency(s) with whom the IT, ITES/BPO and Retail
/FMCG companies has done or is doing employee outsourcing :
a. Systemlogic
b. Optimum Solutions
c. ABC Placements
d. IBM
e. Amway
f. Fidelity Investments
g. Span Systems
h. Lotus Corporation
i. Axxonet
j. G.D.Pai and Company.
k. Jobstreet Pvt. Ltd. (www.jobstreet.com)
l. Monster India (www.monsterindia.com)
The Manufacturing, Finance & Other sector companies have not revealed this information of
key service providers they exploit.
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By Hemang Patel

Outsourced Employees :
The details about Facilities provided by the Service Providers to Outsourced Staff by all the
sectors jointly are as follows :
Parameters Nos.
Tax Consultancy 4
Online Support / Web Access 5
HR Administration 5
Total
23% Payroll Query Handling
36%
Tax Consultancy

Access
23% HR Administration
18%
Inference :
The pie-chart proves the fact that Online Support/Web Access, HR Administration & Tax
Consultancy are the secondary facilities provided by the Service Providers after payroll
Query Handling facilities, which is the most basic, vital and necessary feature offered by an
agency.
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By Hemang Patel
(viii) Two most important reasons for employee outsourcing:
The two crucial reasons for HR / Employee Outsourcing can be recognized by

the subsequent data :
Parameters Nos.
Control Costs 39
Total
Control Costs
18% Focus on core business

31%
3% function
6% Shrink Payroll and Accounting

Costs
12% Screening for permanent

Employment
27%
Inference :
Considering all the sector companies as a group, from the pie-chart, it is confirmed that
companies possess an inclination to outsource remarkably to control costs, focus on core
actitivites and to take the advantage of Staffing Flexibility.
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By Hemang Patel
(ix) Parameters companies consider when selecting a vendor

The following details will help in understanding about the Parameters companies consider
when favouring a vendor for HR / Employee Outsourcing :
Parameter Nos.
Service Charges 227
National Presence 19
Total
Reliable and consistent service

2% quality
11%
29%
recruitment support
27% Service Charges

16% management
Inference :
The Parameters Reliability and Consistency of service Quality along with Service Charges
are the foremost reasons considered when assessing a vendor for HR / Employee
Outsourcing. The other additional features that also serve as measures are Range of
services and Recruitment Support, Expertise in industry domain & Better Outsourced
Employee Management.
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By Hemang Patel
End Results
End Results are concrete outcomes that are entirely focused on increasing the client base of
TeamLease. The below mentioned lists absolutely serve the purpose.
 Companies doing HR / Employee Outsourcing :
B. Finance companies, Insurance & Banks :

2. GE Countrywide Consumer Financial Service
B. IT:
1. AMD Ltd.
2. ASM Technologies Ltd.
3. California Digital India Pvt. Ltd.
4. Datacons Pvt Ltd
5. Deccanet Designs Ltd.
6. e-Professional Services Worldwide Pvt. Ltd.
7. Ericcson Communications Ltd.
8. FCG Solutions (Paragon Solutions)
9. Firstapex technologies Pvt. Ltd.
10. Gamma Microsolutions
11. Icode Software Pvt. Ltd.
12. i-Flex Solutions ltd
13. Innovation Technology Transfer India Ltd.
14. Ittiam Systems Pvt. Ltd.
15. KMG Infotech Pvt Ltd
16. Larsen & Toubro Infotech ltd.
17. LG Soft (I) Pvt. Ltd.
18. Magnasoft Solutions
19. Melstar IT Ltd.
20. Mentors System Solutions Pvt. Ltd.
21. Microland Ltd.
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By Hemang Patel
22. Mindtree Consulting

23. Mistral Software Pvt. Ltd.
24. Motorola (I) Electronics Ltd.
25. Mphasis BFL Ltd.
26. Netkraft Ltd.
27. Network Solutions Pvt. Ltd.
28. Novell Software Development (I) Pvt. Ltd
29. NR Infotech Pvt. Ltd.
30. Oracle Software (I) Ltd.
31. Planetasia.com
32. Poseidon Design Systems
33. Q-Soft Systems & Solutions Pvt. Ltd.
34. Sasken Communications
35. Shobha Renaissance IT Pvt. Ltd.
36. Span Systems Corporation
37. Sun Microsystems (I) Ltd.
38. Talisma Corporation Ltd.
39. Texas Instruments Ltd.
40. Virgosys Software Pvt. Ltd.
41. Wipro Technologies
C. ITES / BPO:
1. Aztec Software & Technology Services Ltd.
2. Convergys (I) Services. Ltd.
3. ICICI Onesource
4. Isakti Technologies
5. Manjushree Infotech
D. Manufacturing (inclusive of Pharmaceuticals & Consumer

Durables) :
1. Astra Zeneca
2. Nokia (I) Pvt. Ltd.
3. Suhner India Pvt. Ltd.
4. Usha International Ltd.
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By Hemang Patel
E. Retail / FMCG :
2. Britannia Industries Ltd
3. Coca-Cola Beverages Pvt. Ltd.
4. Pepsico (I) Holdings Pvt. Ltd
5. Vivek & Co.
F. Others :
7. Broadcom (I) Pvt. Ltd.
8. Desk to Desk Couriers Pvt .ltd.
9. Gemplus India Pvt. Ltd.
10. Novozymes South Asia Pvt. Ltd.
11. Praxair India Pvt. Ltd.
 Companies planning to do HR / Employee Outsourcing :
(X) IT:
2. Access Networks India Pvt. Ltd
3. Accord Software & Systems Pvt. Ltd.
4. Aditi Technologies Pvt. Ltd.
5. Affiliated Computer Services Ltd.
6. Analytica Pvt. Ltd.
7. Apex Avasarala Geospatial Pvt. Ltd.
8. Autodesk India Pvt. Ltd.
9. Bangalore Software Services Ltd.
10. Delmia Solutions Ltd.
11. Digital Think Inc.
12. Eximsoft Technologies Pvt. Ltd.
13. GE Technology Centre Pvt. Ltd.
14. Global Automation Pvt. Ltd.
15. Icelerate technologies Pvt. Ltd.
16. Informatics (I) Ltd.
17. Interwoven Inc.
18. ITC Infotech India Ltd.
19. Ivega Corporation Ltd.
20. Kanrad Technologies (I) Pvt. Ltd.
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By Hemang Patel
21. Locuz Enterprise Solutions Ltd.

22. LS Software Pvt. Ltd.
23. Medinous Healthsystems Pvt. Ltd.
24. Mentorware (I) Pvt. Ltd.
25. NeoIT Com Pvt. Ltd.
26. Netscaler Pvt.Ltd.
27. Netscape Communications (I) Pvt. Ltd.
28. Network Associates Software Ltd.
29. Philips Software Centre Pvt. Ltd.
30. Pradot Technologies Pvt. Ltd.
31. RelQ Software Ltd.
32. S R Nova Pvt. Ltd.
33. Samyoug Softare Pvt. Ltd.
34. Sharp Software Development (I) Pvt. Ltd.
35. Tally Solutions Ltd.
36. Tarang Software Technologies Ltd
37. Think Ahead Pvt Ltd.
38. Trivium India Pvt. Ltd.
39. Vee Technologies
(XI) ITES / BPO:

2. Emuzed (I) Pvt. Ltd.
3. Interactive Infonet Ltd.
4. Processmind Services Ltd.
5. Vennersoft Systems Pvt. Ltd.
(XII) Manufacturing (inclusive of Pharmaceuticals and Consumer

Durables) :
1. Amruthanjan Ltd.
2. Disa India Ltd.
3. Otto Hofstetter (I) Pvt. Ltd.
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Key Findings :
 Out of the total Sample of 315 companies there are 60 companies (14%) who are
doing HR Outsourcing, 45 companies (11%) who are planning to do HR Outsourcing
& 310 companies (75%) who are currently not doing HR Outsourcing. This data
proves that fewer amount of companies are currently outsourcing but the future
seems to be promising as there are companies who are planning to do HR
Outsourcing. The most important issue here is that there are still a large amount of
companies who are not doing HR Outsourcing due to some reason or other.
According to Hewitt Associates Survey “Outsourcing in the Asia-Pacific” some of the

Factors hampering HR outsourcing are :
1. The fear of losing jobs

2. Loss of sensitive information to public/competition
3. Ethics and quality of outsourcing vendors
4. Possibility of security breaches
5. Cost-benefit equation not clear
6. Lack of psychological acceptance
7. Unfamiliarity with the processes and procedures of HR outsourcing
8. Unawareness of the players operating in this area
If this reasons are taken care of and the fears removed there will certainly be a hike
in the Potential Clients.
 It is obvious to say that IT Sector is the most potential market for HR Outsourcing in
Bangalore as it has the highest number of IT companies, both MNCs and Indian in
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By Hemang Patel
India. From the samples studied 41 companies are already involved in HR

Outsourcing and 38 are queuing up for the same. But as each and every vendor is
focusing on this sector, it would be wise to also look at other sectors as potential
markets rather then only pitching for IT Companies.
 The following are the parameters, along with the one which has the highest degree
of significance, established when compiling results of all the sector companies :
1. Maximum Outsourced HR Function by the companies :

Outsourced / Contracted Employees function
2. Maximum Outsourced Positions of Employees :
Lower Level positions
3. Maximum Outsourced Functions of Employees :
Technical functions
4. Maximum Facility provided by the Service Providers to Outsourced Staff :
Payroll Query handling
5. Most important reason for employee outsourcing :
Control Costs
6. Most Important Parameter companies consider when selecting a vendor for Employee
Outsourcing :
Reliable & Consistent Service Quality.
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By Hemang Patel
References :
The reference material used for the same is :
Books : Reference Books like Market Research by Aaker & Day and Market
Research by Boid & Stach.
Internet : websites like www.bangaloreit.com, www.indiainfoline.com,

www.timesofindia.com, www.economictimes.com,
www.bangaloretelecom.com, www.google.com.
Directories : Bangalore Telephone Directory (Getit).
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By Hemang Patel
Annexure
 Questionnaire
___________________________________________________________________
Trends in Employee Outsourcing

This questionnaire is intended to gather information for a project on “Market Research to map current
Outsourcing scenario prevalent in Bangalore” for personal understanding and knowledge of Employee
Outsourcing trends.
It is assured that the responses would be kept confidential.
General Information:
Name of the company :
Name of the Interviewee :
Designation of the Interviewee:
Company :
1. Which sector/industry do you belong to?
Manufacturing Retail / FMCG

(inclusive of Pharmaceuticals)
Finance / Insurance ITES/BPO
Others (Please Specify)
2. What is the Line of your Business?
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By Hemang Patel
3. How many locations / branches does the company have?
HR Outsourcing:
4. Have you outsourced any HR Functions?
Yes No (If No, move to Question.14)
5. What are the functions you have outsourced?
a. Recruitment and Selection

b. Payroll Services
c. Outsourced Employees / Contracted Employees
d. Compensation and Benefits
e. Performance Management
f. Education and Training
g. Others (Please Specify)
6. Does your company do/has done (in the past) Employee Outsourcing?
Yes No (If No, move to Question.14)
7. Which category do they belong to?
Middle Level Lower Level
Shop Floor Level Any other Level

(Please Specify)
8. Which function do they belong to?
HR Finance
Marketing and/or Sales Any other

(Please Specify)
9. What is the number of people (staff) outsourced? (in nos.)
10. What is the average cost to company (CTC) of the outsourced employees? (in Rs.)
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By Hemang Patel
11. With which company(s)/agency(s) has the company done/doing employee outsourcing? or
Who are the key service providers?
12. What facilities do these company(s) / agency(s) provide to these outsourced Staff?
a. Payroll Query Handling

b. Tax Consultancy
c. Online Support / Web Access
d. HR Administration
e. Any Other
13. What are the two most important reasons for employee outsourcing for you?
a. Control Costs
b. Focus on core business
c. Reduce HR Administration function
d. Shrink Payroll and Accounting Costs
e. Head Count Approval
f. Screening for permanent Employment
g. Staffing Flexibility
h. Any Other (Please Specify)
14. What are the company’s future employee outsourcing plans?
No. of employees to be outsourced in the next 6 months :
15. What parameters do/would you consider when selecting a vendor for Employee Outsourcing?
a. Reliable and consistent service quality

b. Range of services and recruitment support
c. Expertise in industry domain
d. Service Charges
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By Hemang Patel
e. Better outsourced employee management
f. National Presence
g. Any Other (Please Specify)
16. HR Head :-
Name :
Phone no. :
e-mail address :
IInd Contact (Decision Maker) :-

Name :
Phone no. :
e-mail address :
Head of the company/office :-

Name :
Phone no. :
e-mail address:
17. Location of the Head/Corporate Office :
Address of the Head/Corporate Office :
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By Hemang Patel
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By Hemang Patel

Mapping Current Outsourcing Scenario

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Mapping Current Outsourcing Scenario

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A FINAL REPORT

“Mapping Current Outsourcing Scenario

(I) About the Company :

TeamLease works after bringing in the right combination of expertise facilitating

Focused approach, continuous investment to enhance operational and delivery standards,

Temporary staffing catches on in India

(II) About Human Resource / Employee Outsourcing :

HR Outsourcing - The Present Picture :

HR Outsourcing - The Future :

 Improves Business Focus - It enables Organisation focus on core competencies, by

 A list of companies doing HR Outsourcing Currently is as follows :

1. Cisco Manpower Hiring Outsourcing

7. Microsystems Manpower Hiring Outsourcing

About the project :

1. Prepare a comprehensive database containing Bangalore company details for

2. Identify the Total Employee Outsourcing market and the percentage of

a. Preparation of a comprehensive database containing Bangalore

Name of the organisation

The source of this information has been :

These sectors along with the number of companies are :

1. Manufacturing (inclusive of Pharmaceuticals) : 105

The Questionnaire of both open-response and closed-response questions and majorly

 With which company(s) / agency(s) has the company done employee

 This prepared Questionnaire is attached with this report in the Annexture.

c. Requesting for response :

d. Telephonic Interview Method :

Telephone nos. not existing, Company shifted/closed down or HR Manager/HR

To sum up, the effective outcome is as follows :

Sector No. of companies Result

The next step towards completing the Market Research is :

g. Results and Recommendations :

Total Sample (no. of companies)

Scenario Parameters Nos.

Total Current Scenario

Currently doing HR Outsourcing

Not doing HR Outsourcing at all

(III) Industry Analysis :

To give an overview, the different sectors understudy are:

1. Finance and Insurance.

4. Manufacturing (including of Pharmaceuticals and Consumer Durables).

1. Finance and Insurance :

Scenario Parameters Nos.

Current Scenario (Finance & Insurance)

Currently doing HR Outsourcing

Not doing HR Outsourcing at all

2. Information Technology (IT) :

The existing scenario of HR Outsourcing market in IT Sector can be analyzed by the

Scenario Parameters Nos.

Planning to do HR Outsourc ing

Not doing HR Outsourcing at all

3. Information Technology Enabled Services/Business Process Outsourcing

Scenario Parameters Nos.

Currently doing HR Outsourcing

Not doing HR Outsourcing at all

4. Manufacturing (inclusive of Pharmaceuticals & Consumer Durables) :

The existing scenario of HR Outsourcing market in Manufacturing Sector can be analyzed by

Scenario Parameters Nos.

Currently doing HR Outsourcing

Not doing HR Outsourcing at all

Scenario Parameters Nos.

Currently doing HR Outsourcing

Not doing HR Outsourcing at all

(IV) Secondary Analysis :

(i) HR Functions Outsourced by the companies.