HR Outsourcing Challenges

It must not be forgotten that a transition from in-house HR provision to the use of an outsourced provider is a significant change for the organisation, and must be managed accordingly, Robinson says. “If significant time is not devoted to the process of change, with unequivocal top-level support, there is a danger that staff/line manager relationships and other aspects of people management policy may be neglected.”
In transforming a business function as intimate as HR is a process that must be managed diligently.

HR Outsourcing Problem Analysis

HR professional, have responsibilities in several broad areas that have a significant impact on your company's bottom line, directly contributing to the corporate return on investment. The outsourcing choices you make are critical decision points that affect both your employer and the HR community at large.

The following problem analysis explores emerging strategies in human resources.
Increased workloads resulting from governmental requirements, budgetary cutbacks, profitability margins and operational necessity require that HR professionals do more with diminishing resources. you may consider any or all of the following:

working nights and weekends

creating and hiring a new position

outsourcing a function or large project

directly contracting with an independent professional colleague: Outsourced professional employee

 

Problem Analysis

The Indian outsourcing market has seen a huge leap in the recent years with more and more companies making India their offshore outsourcing destination. The competition for a share in the offshore outsourcing market is heating up with most nations stepping up efforts to attract companies; but in the midst of all this India still seems to maintain its unique lure.

Many times each day you reach a decision point and choose which priorities get your time and attention. Accepting added accountability in your HR department and thriving with your ever-growing workload require detailed analysis of your decision points.

The Indian outsourcing market has seen a huge leap in the recent years with more and more companies making India their offshore outsourcing destination. The competition for a share in the offshore outsourcing market is heating up with most nations stepping up efforts to attract companies; but in the midst of all this India still seems to maintain its unique lure.

Working nights and weekends

Every HR professional worth his or her paycheck is pressed for time. Workweeks ranging from 55 to 60 hours are commonplace. You've determined that you're already working smart and hard to keep current with the business's needs. Your human resource career has transitioned from a hands-on tactical position to holding down a strategic role in the HR department. As the competition for capital intensifies, how will your decision to outsource translate to your company's bottom line?

The Indian outsourcing market has seen a huge leap in the recent years with more and more companies making India their offshore outsourcing destination. The competition for a share in the offshore outsourcing market is heating up with most nations stepping up efforts to attract companies; but in the midst of all this India still seems to maintain its unique lure.

Creating and hiring a new position

A cutbacks mean that there's no budget for new hires this year. The term hiring freeze has made a comeback after nearly a decade in hibernation. You no longer fill vacancies as they occur, and this trend may continue for the near future. In fact, you quite possibly severed someone with whom you worked closely. How will you provide greater results with less?

Outsourcing a function or large project
Speak to ten companies, and ten HR managers will define outsourcing differently. Small- or medium-size firms frequently use single-source outsourcing for operations such as payroll or benefits. Fortune 500 firms have moved toward outsourcing all transactional and tactical practices. Seven-, eight- and nine-figure contracts in the form of comprehensive solutions have increased dramatically over recent years. Once set into motion, Fortune 500 outsourcing agreements often have a shelf life of five or more years. The definitions employers use to quantify successful outsourcing depend on the goals and objectives outlined at the onset of each engagement--and they vary widely. How will you determine if and when outsourcing meets your needs?

Today's economy challenges HR professionals to demonstrate their advocacy of responsible stewardship. Historically, the personnel agency evolved as the American franchise economy grew from the 1950s. By the 1970s, franchise usage expanded--from food to cars to personnel. The decade of the 1990s required the franchise and boutique staffing agencies to invest heavily in technology or sink in the mud.

 

How to overcome HR outsourcing problems

Similar to your auto mechanic and electrician, you expect consistent service from those you know and trust. The traits exhibited by every outsourced professional employee must include high quality service, fair prices and deadlines met as needed to name just a few.
The right outsourced professional employee at a fair and competitive rate will provide innovation in education, strategy, technical resources and skills. Choosing to outsource and manage this partnership and process successfully will enable you to protect corporate capitol and shareholder value. Preparation and planning before outsourcing your HR will also play a crucial role in overcoming any problems.

Implementation of outsourcing HR takes place in stages.

Planning Initiatives is the very first stage of the process. The organisation here assesses the associated risks. It then announces the initiative and the project team is formed. Advisors are engaged and the team is trained. Resources are gathered and issues related to resource management, information management and project management are addressed. Now the objectives are set.

The strategic implications are explored. An organisations vision, competencies, structure, strategy, value chain and transformational tools are understood. Then the determination of contract, rights and its termination date takes place. Finally the initiative is aligned.

Performance and costs are analysed in third stage. the cost of activity is measured along with the costs that would be incurred if the project fails. Measurement of performance takes place along with the costs of poor performance. Both costs and performance are benchmarked. Finally there is a determination of risks, asset values, total costs, pricing models and final targets.

This stage is that of negotiation. Negotiations are planned, issues are addressed, term sheets are prepared and contract negotiation takes place. Once everything is carried perfectly a relationship is announced.
Now the transition of resources takes place. The team roles are adjusted and compared with transition plan. Transitional issues are than addressed.

Final stage is that of managing the relationships. Management styles are adjusted and an oversight council is set up. Definition and designing of agenda, schedule and performance reports take place. Oversight roles are performed, poor performance is confronted and problems solved. Finally a relationship is built.

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