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Dear Ashok,
You could have told why you are asking this query? Are you student or working HR professional?
You can outsource recruitment, training and statutory activities. However, just because there is provision to outsource, you should not do that. There should be compelling reasons for outsourcing. Size of the organisation also matters while deciding on outsourcing.
May it be noted that outsourced agency charges at least 10% service charge. Add to this further 12.36% service tax. Both together increase the cost of services by 23.6% If you outsource recruitment, you have to part 8.33% service charge, which is equivalent to one month's salary.
In these days of cost cutting, is it worthwhile to outsource the services. Ask question to yourself and take decision. I know a case where HR Manager, recruited one recruiter and brought the cost of recruitment in a big way.
Thanks,
Dinesh V Divekar
From India, Bangalore
You could have told why you are asking this query? Are you student or working HR professional?
You can outsource recruitment, training and statutory activities. However, just because there is provision to outsource, you should not do that. There should be compelling reasons for outsourcing. Size of the organisation also matters while deciding on outsourcing.
May it be noted that outsourced agency charges at least 10% service charge. Add to this further 12.36% service tax. Both together increase the cost of services by 23.6% If you outsource recruitment, you have to part 8.33% service charge, which is equivalent to one month's salary.
In these days of cost cutting, is it worthwhile to outsource the services. Ask question to yourself and take decision. I know a case where HR Manager, recruited one recruiter and brought the cost of recruitment in a big way.
Thanks,
Dinesh V Divekar
From India, Bangalore
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