Samvedan
Consultancy_hr & Ir
Kshama
H.r Executive
+1 Other

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Dear Members,
We are a large organization having Pan India presence. We are planning to outsource the staffing for lower level. I want to have a better understanding of Outsourced Staffing it's pros & cons.
Kindly put your views.
Regards,
Kshama

Hello,

Outsourcing as many functions as is possible is the order of the day, it seems. I am glad someone is thinking about the utility and efficacy of the system.

Nothing is good or bad per se`. But one must consider the following:

1. Blood is thicker than water, they say!
2. Mother brings up the child far better than most caretakers/governesses.
3. There is a world of difference between a soldier who fights for his motherland and a mercenary!

Its basically a question of the level of commitment one gives to the organization. By default it is presumed that own employees give higher commitment than contracted staff. But is that really true? Staff needs to be managed and the management must be capable of getting the best out of the people it is entrusted with. However, it is reasonable to infer that unless one can look forward to "growth" and "development" one is not sufficiently motivated. A mercenary, though fights for "winning", his first motivation is to earn his share. His priorities are different. Similarly, an out sourced staff has pretty little to look forward to in life under this arrangement and his primary motivation therefore is to earn a livelihood and only then the well being and growth of the organization for which it works.

Suggest you consider these aspects of the issue before you decide. But a good, fair, generous, transparent and humane system can procure results from out sourced staff on par with regular staff if not better.

It is neither possible nor wise to make generalizations on issues lije this, so unless you carefulle pros and cons, do not rush into deciding the matter.

Regards
samvedan
August 23, 2008
-------------------

Thank you Samvedan for posting your views.To add on to the matter ,

Outsourcing staffing function allows the company to concentrate on its core function. It reduces the cost burden. Though a lot of time is saved still it requires a considerable care in co-coordinating information flow with the agency. For the outsourcing agency, providing staff is their business, this means that they have to maintain a pool of high quality staff with a wide range of skill sets. But having said that the organization has to keep a check on it & ensure that they are provided with a high quality staff. Outsourcing can compromise the organization’s control over the function that are outsourced. In case of staffing, the staff that has been outsourced may have a low morale & motivation as their job appear to be lost. In reality it might not happen but it increases employees’ insecurity. The organization should keep them connected with the on roll employees & see that their goal is not different from the organizational goal. In all aspects it’s that most difficult task. Off roll employees should be valued at par with the on roll employees
.
My views are in general..Members who have beem outsourcing staffing in their organization kindly put your views.


Regards,
Kshama

Dear Kshama,


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.

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