HR OUTSOURCING – A REVOLUTION
Abstract
Human Resource Management has played an important role in the development of people. The scenario of Human Resource Management is changing day-by-day and human needs within the organization as individuals and in groups is also changing in significantly. Their roles, requirements and responsibilities continue to translate into new forms. In these circumstances, the human resource function plays a very important and strategic role as they have staff authority over the line managers in an organization. A changing business environment can influence the outcome of current operations, stakeholders and corporate strategy as a whole. The function of viewing and integrating business opportunities, stimulating employees, developing employee strengths and creating functional teams help the company’s vision and translates this concern into profit. HR strategy is no longer a distinct process from the business strategy and its processes.
Outsourcing is a management strategy that allows a company to concentrate on the core business activity, rather than spend time on the non-essential and routine functions. Outsourcing creates several HR challenges for firms. Although it often helps companies slash costs, employees may face layoffs when their jobs are framed out to the lowest bidder. The productive capacity of all business depends on three factors: The capital resource, the physical resource and the human resource. Obviously, it makes immense business sense to outsource non-core activities. Of all the three resources, only the human resource possesses a productive capacity for which the upper limits are not defined. Therefore, the ingenuity with which a company uses its employees’ skills will define the limits of employee potential.
Abstract
Human Resource Management has played an important role in the development of people. The scenario of Human Resource Management is changing day-by-day and human needs within the organization as individuals and in groups is also changing in significantly. Their roles, requirements and responsibilities continue to translate into new forms. In these circumstances, the human resource function plays a very important and strategic role as they have staff authority over the line managers in an organization. A changing business environment can influence the outcome of current operations, stakeholders and corporate strategy as a whole. The function of viewing and integrating business opportunities, stimulating employees, developing employee strengths and creating functional teams help the company’s vision and translates this concern into profit. HR strategy is no longer a distinct process from the business strategy and its processes.
Outsourcing is a management strategy that allows a company to concentrate on the core business activity, rather than spend time on the non-essential and routine functions. Outsourcing creates several HR challenges for firms. Although it often helps companies slash costs, employees may face layoffs when their jobs are framed out to the lowest bidder. The productive capacity of all business depends on three factors: The capital resource, the physical resource and the human resource. Obviously, it makes immense business sense to outsource non-core activities. Of all the three resources, only the human resource possesses a productive capacity for which the upper limits are not defined. Therefore, the ingenuity with which a company uses its employees’ skills will define the limits of employee potential.
In a dynamic global environment, competition in terms of knowledge-intensive services has taken the front seat. That is how the need for human creativity has suddenly been recognized by corporates. But human talent is reported to be falling short of demand. Although capital is freely available for investment, matching technical and managerial talent to manage such investments is found wanting. This phenomenon is driving companies to invent newer ways of overcoming the hurdles. This paper has been prepared for detail presentation and discussion in the seminar on
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