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  • HR Outsourcing: Karthick Raja II Year - M. Com SRM University

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    Gunasekaran R
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    This document discusses HR outsourcing. It defines HR outsourcing as when a company utilizes third party services to handle its HR functions. There are three main types of HR outsourcing: application service provider (ASP) which provides HR software applications; business process outsourcing (BPO) where clients contact outsourced employees directly; and total HR outsourcing where the outsourcer runs the entire HR function. The document also lists benefits of outsourcing like enabling companies to focus on core operations and creating cost savings, as well as implications such as accessing broad skills and increasing flexibility.

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    HR OUTSOURCING

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    This document discusses HR outsourcing. It defines HR outsourcing as when a company utilizes third party services to handle its HR functions. There are three main types of HR outsourcing: application service provider (ASP) which provides HR software applications; business process outsourcing (BPO) where clients contact outsourced employees directly; and total HR outsourcing where the outsourcer runs the entire HR function. The document also lists benefits of outsourcing like enabling companies to focus on core operations and creating cost savings, as well as implications such as accessing broad skills and increasing flexibility.

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    13 views10 pages

    HR Outsourcing: Karthick Raja II Year - M. Com SRM University

    Uploaded by

    Gunasekaran R
    This document discusses HR outsourcing. It defines HR outsourcing as when a company utilizes third party services to handle its HR functions. There are three main types of HR outsourcing: application service provider (ASP) which provides HR software applications; business process outsourcing (BPO) where clients contact outsourced employees directly; and total HR outsourcing where the outsourcer runs the entire HR function. The document also lists benefits of outsourcing like enabling companies to focus on core operations and creating cost savings, as well as implications such as accessing broad skills and increasing flexibility.

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    HR OUTSOURCING

    KARTHICK RAJA
    II Year – M. Com
    SRM University
    CONTENTS

    HR Outsourcing
    Need for HR outsourcing
    Types of HR outsourcing
    Implications of HR outsourcing
    HR OUTSOURCING

    Human Resource Outsourcing is a process in which a


    company utilizes the services of the third party to take
    care of its HR functions.
    A company may outsource a few or all of its HR related
    activities to a single or combination of service provides
    located in offshore destinations like India, China,
    Philippines etc.
    NEED FOR HR OUTSOURCING

    Enabling businesses to focus on core operations


    Delivering cost savings – whether direct or indirect
    Helping to create a stable, cost-effective operating
    platform
    Transferring focus from internal processes to
    achievement of business goals
    TYPES OF HR OUTSOURCING
    Application Service Provider (ASP)
    Business Process Outsourcing (BPO)
    Total HR outsourcing
    1. ASP

    A host of companies specialise in providing hardware


    and software applications to support large
    organisations which have developed application
    packages for supporting human resource activities in
    an organisation.
    The major disadvantage with ASP is the costs
    associated with application software.
    2. BPO

    The major difference between BPO and ASP is that in


    BPO, the client is in direct contact with the employees
    through call centres or support centres.
    While certain firms wish to retain the power to control
    human resources, others hand over the power to the
    service providers.
    3. TOTAL HR OUTSOURCING

    In this type of outsourcing, the entire HR function is


    run by the service provider.
    The client organisation only has senior HR
    professionals who are also HR- strategists.
    IMPLICATIONS OF HR
    OUTSOURCING
    Access to broad skills and experiences
    Remove pressure to recruit, manage and motivate a
    diverse in- house HR team
    Acquire innovative ideas
    Increase flexibility to meet changing business
    condition, demand for product and services and
    technologies
    THANK YOU

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