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Outsourcing of HR Processes to India

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  • Author
  • #15718
    Preeti Chandel

    Business Outsourcing Services that can reduce HR division costs

    An increasing number of major businesses are outsourcing their human
    resource operations today. Some of the services on offer are Payroll
    operations, Salary and other benefits administration, employee data records
    and management, asset management services.

    What are the reasons of outsourcing HR operations to India?

    1. Besides the known factors of availability of an educated,
    English-speaking class and low-cost advantages, India has a far bigger
    advantage in taking an early leadership in the global ITeS industry – that
    a large base of loyal and satisfied customers around the world built by
    IT services players. India, as a country offers a huge pool of skilled
    resources and IT Services companies that can deliver services to clients
    globally, with quality levels that can match and surpass global quality
    standards. Now that the “India” brand is associated with high quality
    services, it is a solid foundation to promote business for other services
    2. Cost advantages.
    3. To outsource HR operations is to streamline processes and
    make them more transparent to employees. Technology is usually a key enabler
    in achieving this transparency. It also helps preserve the sanctity of
    information between employee and employer.
    4. Indian Internet IT service companies are considered a viable outsourcing
    option today. What they offer is a strategic initiative to cut costs and
    access to intellectual capital not available in-house.
    5. Economic slowdown has stimulated more enterprises globally to consider
    Business Process Outsourcing.
    6. The increasing emphasis on customer response activities in the West have
    made Indian outsourcing service providers reinvent themselves and extend
    their web development activities to high-end outsourcing solutions.
    7. Trend towards consolidation, through large-scale mergers and
    in a variety of industries, continue to create new opportunities for
    outsourcing back-office functions.

    Comprehensive HR outsourcing services that you can outsource to India:
    a. Maintenance of personnel records
    b. Annual review and revision of employee handbook
    c. Audit of HR strategies, policies and procedures
    d. Implementation of employment/termination procedures
    e. Job description process
    f. Exit interviews
    g. Employee development program
    h. Performance management process
    i. On-site support
    j. Employee retention programs
    k. Long term incentive/equity stock option programs
    l. Employee Career Development
    m. Employee Morale Building
    n. Compensation plan review

    Recruiting services
    a. Retained Search
    b. Job Description Development Strategy
    c. Ad Placement
    d. Applicant Screening
    e. Reference and Background Check
    f. Candidate Interviews and Recommendations
    g. Development and Coordination of Offer
    h. Integration of New Hire

    HR management services
    a. Compensation plan review and analysis
    b. Culture development
    c. Due diligence/Acquisition planning
    d. Incentive and retention programs
    e. Executive Coaching
    f. Succession Planning

    Benefits administration
    a. Brokerage Services
    b. Custom Benefit Plan Strategies and Design
    c. Benefit analysis, cost control and reduction recommendations
    d. Development of Employee Communications
    e. Eligibility and Enrollment Services
    f. Employee claims resolution
    g. Monthly invoice audit and reconciliation
    h. On-line employee access to benefits information

    Payroll services
    a. Employee self-service features
    b. Payroll processing and reporting
    c. Payroll tax reporting
    d. Time off tracking
    e. Online benefits enrollment

    Measures of successful outsourcing

    The HR department traditionally has been a cost-consuming function, but is
    now slowly contributing significantly to a company’s bottom line. This has
    to outsourcing tasks like payroll, benefits, education/training and
    development, recruiting, personnel administration, performance management,
    career development, organizational development and workforce management.

    The outsourcing market is beginning to see HR as a preferred choice. A
    GartnerFocus Report echoes that thought: “Only those companies ready to
    address thenecessary transformation of their HR processes will find that
    outsourcing will bring access to world-class processes, competitive

    Technology compatibility, confidentiality and cost are other challenges that
    both sides must work on. Mutual trust is critical, as it’s a long haul
    commitment. It is imperative that senior management are involved right from
    the beginning and also drives the initiative. In addition, a clear
    understanding of requirements and expectations from both sides is an
    important platform in building the relationship. Compatibility in culture
    and values along with an open and flexible approach go a long way in
    that the outsourcing venture is a successful one.

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