Hi Abhiman,
There are two dimensions to your question.
If you are talking about the HRO process, then yes definitely it can be a cost effective option because in some of the companies abroad, the management (support/staff) is paid higher than the employees and if they are outsourced to India, then the companies can actually benefit alot through billing at decent rates.
If you are talking about the importance of HR in contributing to operation efficiency in terms of costs, then the answer would depend on how strong are we to implement good practices to yield the maximum out of the resources and infrastructure keeping the human dimension in mind.
If you would like to discuss further, then you can call me on 09985227000.