Dear Ivan,
It is certainly a myth that the retial sector in more organised that any other industry. I think not many in India would ever agree to your statement. The retail sector is as disorganised, if not more, as any other industry.
More than 87 percent of the funds that midsize companies in India budget for Finance and Human Resource processes go toward administrative transactions rather than strategic reporting and analysis, which will move a business forward. In response, firms have begun to shift from outsourcing single, discreet functions to more comprehensive, integrated HR solutions, enabling them to leverage data elements that are common in payroll, taxes, benefit administration and other HR processes.
Driving change -- Today's HR professional must focus more time and attention toward the strategic development of a company's human capital to support the achievement of company goals. Outsourcing has created an affordable infrastructure using integrated technology and HR support services to more efficiently manage personnel information and transactional activities.
The value proposition -- The value proposition is that HR outsourcing is seen as a tool that empowers organizations with the ability to focus on core business competencies and drive strategic results within their culture. A recent study conducted by Fidelity Investments supports that most executives view the outsourcing of human resource and benefit administration as a good investment based upon the expertise and expanded capabilities it provides compared to the cost of replicating similar capacities internally.
Trends in the mid-market -- According to a study by International Data Corp., an Information Technology and Business Process Outsourcing research and advisory firm, the next big wave of HR outsourcing will occur in mid-tier firms, those with 100 to 1,000 employees. Other trends worth noting:
* By 2010, 85 percent of Indian companies will outsource at least one component of their HR functions.
* The demand for aggregated HR outsourcing services (payroll, benefit and HR records management under one vendor contract) will continue to accelerate.
HR outsourcing, seen initially as an organizational response to downsizing and restructuring pressure, has evolved to reflect both operational and strategic rationales for driving change in an organization. Lower technology costs, affordable access to HR expertise and the emergence of stable, sizable outsourcing specialty firms have made HR outsourcing a viable, cost-saving strategy for mid-market companies.
Finally more than investigating into whether HR outsourcing would do a company more good than bad and / or vice versa, companies should put their best foot forward in ensuring that once their HR processes are outsourced, they are able to derive maximum benefit both in terms of cost and retruns.
All the best !
Best regards,
Imran.  | 
On Retail Sector 
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