Project Report ON HR OUTSOURCING

Submitted in Partial fulfillment of requirement of award of MBA degree of GGSIPU, New Delhi

Submitted By Sanjay Singh 01015603911 4TH semester (2011-2013)

Northern India Engineering College (Affiliated to GGSIPU) FC-26, Shastri Park, Delhi-110053

DECLARATION

I,________________ enrol.no.____________ do hereby certify that the Research Project entitled ______________________ submitted in requirement of fulfillment of MBA degree is an authentic record of my own work, under the guidance of _____________, of Northern India Engineering College, Fc-26, Shastri Park, New Delhi. This is to further certify that I have not submitted this Project Report to any other Institute for the award of any other degree.

(Signature) NAME Enrol.No. Batch Date

Acknowledgement
No Learning is proper and effective without Proper Guidance
Every study is incomplete without having a well plan and concrete exposure to the student. Management studies are not exception. Scope of the project at this level is very wide ranging. On the other hand it provide sound basis to adopt the theoretical knowledge and on the other hand it gives an opportunities for exposure to real time situation. This study is an internal part of our MBA program. Intention, dedication, concentration and hard work are very much essential to complete any task. But still it needs a lot of support, guidance, assistance, co-operation of people to make it successful. I bear to imprint of my people who have given me, their precious ideas and times to enable me to complete the research and the project report. I want to thanks them for their continuous support in my research and writing efforts.
I wish to record my thanks and indebtedness to Ms. Dr. Divya Gangwar whose inspiration, dedication and helping nature provided me the kind of guidance necessary to complete this project. I would also like to acknowledge my parents and my batch mates for their guidance and blessings Name : Sanjay Singh Enrolment No. : 01015603911 Semester/Batch : MBA , 4th semester Date :

CONTENT

PAGE NO
1-3

Objectives of the study

4-11

Company Profile

12-13

Literature Review

14-16

Research Methodology
17-31

Data Analysis

32-32

Findings
33-33

Conclusion Bibliography
34-34

Recommendations Bibliography

3. Executive summary
This research is aimed at analyzing the current state of the HR outsourcing market in India and the trends that are prevalent in the same. Today, in this era of globalization there is high degree of competition in all areas. One very important trend in the recent times has been the growth of human resource outsourcing. Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can't be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner . As a result, human resources outsourcing is becoming increasingly prevalent. The number of companies outsourcing HR activities continues to rise, and the scope of outsourced HR activities continues to expand. HR outsourcing can happen in HR functions, like payroll administration (producing checks, handling taxes, dealing with sick-time and vacations), employee benefits (Health, Medical, Life insurance, Cafeteria, etc), human resource management (hiring and firing, background interviews, exit interviews and wage reviews), risk management, etc. Outsourcing has become a common response to manage people and technology resources strategically, enhance services, and manage costs more effectively. Outsourcing non-core activities allows HR professionals to move away from routine administration to a more strategic role. The organization can focus on higher valueadded activities while the outsourcing provider takes care of the day-to-day administration. Critical internal resources, such as technology and talent, can be devoted to company's core business. Outsourcing reduces the need for large capital expenditures in non-core functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today's business environment. A growing number of executives understand the

benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognize outsourcing relationships as long-term partnerships created to further the strategic goals of the organization. Companies to whom organizations outsource their Human Resources function possess the knowledge and resources to expertly perform part or all of a clients' human resources function, allowing the client to streamline their internal processes and concentrate on generating profit in their core business. But still in India, people are not very clear about what exactly is manpower outsourcing all about, and issues like quality and trust needs to be addressed properly. Experts say the basic reasons hampering the growth of HR outsourcing in India are confidentiality and cost factors. Moreover, the fear of losing jobs, losing control over confidential data, ethics and quality of outsourcing vendors, security breaches and overall confidence in the vendors deters many organizations. The biggest problem - and this is why the HR outsourcing industry in India is on the back foot - is the government and the industry's failure to tackle issues like data security and data privacy. This is where Indian HR outsourcing companies face a major handicap . However, the future seems to be very promising. Estimates show that the latent size of HR outsourcing in India is about $ 2 billion with a current market of $ 27 million and it is growing at an alarming rate of about 50 per cent. India has immense potential as more than 80% of fortune 1,000 companies are discussing HR outsourcing as a way to cut costs and increase productivity. As part of our research, we gathered information from a number of companies about HR outsourcing and the reasons for which they outsource or dont outsource. Also, we tried to find out about the preferred models for outsourcing and perceived advantages and disadvantages. Research Process adopted was as follows: 1. Defining the objective of the research and reviewing literature available on it (Secondary Research) 2. Research Design: Developing Research Plan and implementing it - designing questionnaire - deciding on the sample size - taking interviews 3. Collecting data

4. Analyzing data 5. Preparation of report 6. Interpreting and reporting the findings Some of the companies included in the survey were: HDFC Bank B.H.E.L. ICICI Lombard TCS JCB India Ltd. Star Wire India Ltd. Sterling & Wilson Pvt. Ltd. Career Launcher Saksoft Ltd. Mcgraw-Hill Education

Introduction
What Is Outsourcing? In a nutshell, outsourcing is an accepted management tool for restructuring and refocusing the way an organization does business. It challenges management to build a more flexible organization centre on the core competencies of the business. In making the determination that a business has more to gain by having certain "noncore" aspects of the business outsourced to a third-party service provider, the organization transfers responsibility for one or more activities or functions that would normally be performed in-house to a qualified vendor, for a specified period of time and at a negotiated fee, in accordance with terms stipulated in a service level agreement (SLA). In essence, the organization is making a decision to send certain parts of the business out to a provider whose "core competency" is that part of the business. HR outsourcing (HRO) is the application of different business models and techniques to new forms of activities - or processes and radically redesigning them to create outputs of value for end users such as customers or employees. HRO can be traced back to the definitive work of Michael Hammer and Jim Champ in Re-engineering the Corporation. This spawned the business process re-engineering (BPR) industry in the 1990s. Business process outsourcing (BPO) is based on the principles of reengineering, but also combines them with the ownership and management of processes on behalf of management by an outside vendor. BPO has been applied to many transactional processes that can be easily defined or 'scaled' and transferred to third party ownership with deeper expertise than themselves. Until recently, the management of IT systems has been the major element of the outsourcing market. An ongoing debate concerns which business processes are 'core' to organization - in the sense of core competencies that drive competitive advantage. Any non-core - or peripheral - activities are outsourced. Typically, Services are improved Overheads are reduced

 Many processes are automated - thus reducing people The outsourcing of HR processes emerged in the late 1990s, pioneered by firms specialising primarily in IT outsourcing - although not exclusively - in the US such as ACS, EDS and Accenture. Many transactional HR processes are outsourced and are increasingly associated with electronic delivery - or 'e-HR'. Much day-to-day HR administration can now be transferred to third party providers. Payroll and benefits is widely outsourced with organisations benefiting from economies of scale and powerful Enterprise Resource Planning (ERP) solutions. Competition among HRO providers has dramatically reduced prices. Other advantages for clients include: cost reductions service improvements upgrading technology being better able to respond to business change. Types of HR Outsourcing In the past, HR outsourcing was thought of as hiring a vendor to provide a service. With the new focus on outsourcing, there is more of an opportunity to partner with the vendor to provide the service on a longer term basis rather than just a one-time vendor contract. HR outsourcing can include Discrete services: In this instance, one element of a business process or a single set of high-volume repetitive functions is outsourced to a third-party administrator. Examples of discrete services could include the annual open enrolment process, flexible spending accounts or employee background checks. Multi-process services: The complete outsourcing of one or more functional human resource processes would be an example of multi-process outsourcing (also called blended services). As such, the outsourcing of either health and welfare benefits administration or defined retirement plan and 401(k) plan administration to a thirdparty administrator would be an example of multi-process or blended services outsourcing. Total HR outsourcing: Total HR outsourcing represents the transfer of the majority of HR services to a third party, to include recruitment, payroll, HRIS, benefits, compensation and communications, as well as the transition of HR management and staff. However, HR executive management would normally remain in place within the

organization, along with strategic planning related to people management and other key HR functions at the discretion of management

Those company providing HR outsourcing there

People Strong
People Strong: Powered by People, Processes & Technology People Strong is a leading HR Outsourcing company, specializing in HR Shared Services ,Recruitment, Payroll & Compliance Management, and HR Technology Solutions. With a pan-India presence, People Strong services global players across industries and is one of the first movers in BFSI, IT/ITES, Auto, Pharma , and Education Recruitment Process Outsourcing (RPO) in India. PeopleStrong has implemented the largest number of HR Shared Services projects in India, managing over 2 lac employees every month. We drive well known research studies like 'India Attrition Study' & 'BestCompanies to Work'. PeopleStrong provides compelling solutions to employers in all segments with over 70 multinational clients, adding value by enabling organizations to add reliability and accuracy to HR output and thus creating Happy Organizations. PeopleStrong specializes in HR Shared Services, Payroll & Compliance Management, Process Consulting, Recruitment Solutions, Workforce Management, Risk Management, Benefits, Learning & Development, and Talent Management. For over 6 years, our unique combination of domain expertise, operational excellence and innovative technology has delivered happiness for our customers as well as their employees.

Aon
Aon plc is the leading global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing. Through its more than 61,000 colleagues worldwide, Aon delivers distinctive client value via innovative and effective risk management and workforce productivity solutions.Industry Leading Global Resources Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was ranked by A.M. Best as the No. 1 global insurance brokerage in 2009, based on brokerage revenues, and voted best insurance intermediary, best reinsurance intermediary and best captives manager in 2010 by the readers of Business Insurance. Aon recognized many years ago that our clients want products and services built around their unique needs and provided by professionals with deep expertise in their industries and local markets. We saw that globalization demanded two capabilities: gather the best thinking from around the world and then deliver solutions locally. With worldwide

distribution, a vast base of intellectual capital, and leading technology, we have built a professional services company to achieve these important goalsall focused on areas increasingly in demand: insurance brokerage, risk management, and human capital consulting. Insurance and Risk Management Insurance and risk management is now widely viewed as a critical boardroom issue. It is the cornerstone of every companys capital structure. A poorly constructed program may leave your organization vulnerable to major long-term setbacks, or worse, insolvency and bankruptcy. Aon Risk Solutions provides a well-designed insurance and risk management program that frees you to pursue your visionunhindered by concerns that you may need to hoard precious financial capital or maintain unusually high levels of liquidity. Human Resource Consulting and Outsourcing Aon Hewitt is the worlds top global human resource consulting and outsourcing firm, providing a complete array of consulting, outsourcing and insurance brokerage services. Our professionals possess extensive knowledge and experience in a variety of fields and help companies of all sizes attract and retain top talent. We can help you achieve better business results by finding, developing, motivating and rewarding employees in ways that fit with your broad financial and business goals. Reinsurance Reinsurance is critical to helping insurance companies underwrite risk profitably, while preserving or enhancing capital strength and ratings. Aon Benfield, the worlds leading reinsurance broker and capital advisor, provides clients with integrated capital solutions and services, delivering objective advice and fostering competition among highly rated reinsurers and an expanding array of new and alternative capital providers. Clients are better able to differentiate and meet their business objectives with our treaty and facultative reinsurance placement services, capital markets expertise, and relevant analytics and technical expertise, including catastrophe management, actuarial and rating agency counsel. To effectively deliver these, and other, services, Aon has developed a global network of local resources brought together via our Global Business Units and a Strategic Account Management system. These resources let us deliver services around the worldto multinational companies, small businesses, independent agents or brokers, associations and affinity groups and even individual consumerswith the local expertise necessary to meet your specific needs

SSON
SSON is your onestop shop for all questions and information needs regarding your shared services operations. SSON has been supporting the global shared services and outsourcing community for over 10 years. We provide a forum for the international services delivery community, in which practitioners can exchange knowledge, make connections, learn from case studies, and stay up-to-date with the latest news to impact the industry. SSON runs conferences

around the world, offering you an opportunity to connect with experts on a face-to-face basis. We also offer a multitude of online learning opportunities, including webinars, online training courses,

Objective of the research

To analyze of this research is to formulate a picture of current trends in outsourcing in HR services To identified discern common factors promoting or inhibiting the growth of outsourcing industry. To analyze the risk level during the HR outsourcing To analyze the outsourcing factors are help to vender selection.

HR

5. Literature review:
Global Scenario SHRM Human Resource Outsourcing Survey Report The 2012 survey report revealed that HR outsourcing was a practice used by almost six out of 10 organizations. However, one-third of organizations did not outsource any HR functions, and only a few planned to outsource HR functions in the next three years. HR functions were usually partially outsourced or completely outsourced. The difference is that when functions are partially outsourced, the organization comanages the function with the vendor; when they are completely outsourced, the vendor takes full responsibility. More than one-half of HR professionals indicated that their organizations partially outsourced an HR function. Administration of health care benefits, pension benefits and payroll were examples of functions most commonly cited as partially outsourced. The top three functions that were outsourced completely were background checks, employee assistance programs and administration of flexible spending accounts. Some of the most frequently named drivers for outsourcing were reducing operating costs and controlling legal risk by improving compliance. However, large-staff-sized operations, compared with small organizations, were twice as likely to indicate that their reason for outsourcing was an attempt to free up the time of their HR staff to focus more on organizational strategy. When asked about the future of outsourcing, about two-thirds of HR professionals predicted that their level of outsourcing would remain the same over the next five years, and nearly one-third expected their organizations to increase their level of HR outsourcing.

Outsourcing seemed to be favored to a greater extent in large-staff-sized organizations: Almost twice as many HR professionals from these organizations, compared with medium organizations, indicated that HR outsourcing was likely to increase in the next five years. When asked about the benefits of outsourcing, the majority of HR professionals indicated that outsourcing allowed HR professionals the chance to concentrate their efforts on core business functions, such as organizational strategy development and execution. Correspondingly, nearly three-quarters of HR professionals agreed that the role of HR professionals became more strategic with the outsourcing of certain, specifically transactional, HR functions

Present scenario in India With more and more companies looking to rationalise employees on their payroll, manpower outsourcing is slowly becoming the new buzz in India too. And the trend seems to have hit not just big multinational companies but the public sector and government undertakings as well, though on a very low key yet in the latter. Estimates show that the latent size of HR outsourcing in India is about $2 billion with a current market of $27 million and it is growing at a rate of about 50 per cent. Experts, however, say though foreign companies are outsourcing jobs to India, putting the country in the middle of outsourcing boom, the Indian companies do not seem to be enamoured by the opportunity till now and are not adopting HR outsourcing practices in a big way . "HR outsourcing in India has not seen the required momentum and is limited to a trickle effect, with companies outsourcing a few selected low-end HR processes," says Anil Mahajan, executive director, Talent Hunt Pvt Ltd, a leading HR firm in New Delhi. A recent survey 'Outsourcing in the Asia-Pacific', conducted by Hewitt Associates, a global HR outsourcing and consulting firm, confirms the situation. The survey showed that many companies in the region are either unfamiliar with the process and procedures of HR outsourcing, or are unaware of the players operating in the area. "Even though across the globe companies are realising that headcount is directly related to the revenue and are outsourcing most of their transaction and administration related work, the general opinion among the Indian companies is that it is still economical to manage all their HR process internally," Mahajan says, adding: "Here people are also not very clear about what exactly is manpower outsourcing all about.Explaining about the concept of HR outsourcing, Kris Lakshmikanth, founder CEO & managing director of The Head Hunter, a recruiting firm in Bangalore, says, "It is a process of outsourcing involving particular tasks like recruitment, making payroll, training and development to a third party who have expertise in these respective fields."

"HR outsourcing can happen in areas such as payroll, employee benefits administration, fixed assets administration, network, receivable and logistics management, hardware maintenance, telemarketing, call centres and database management. In India, the most common processes outsourced are related to training,

payroll processing, surveys, benchmark studies and statutory compliance," Mahajan adds. Elaborating about the benefits of manpower outsourcing, Lakshmikanth says, "Today, every organisation is aiming at achieving productivity by enhancing return on investments and achieving the economies of scale. In this context, it makes sense to focus only on the organisation's core competencies and outsource non-critical business activities. Therefore, routine administrative work, although important, can be outsourced to third party vendors." Experts say the basic reasons hampering the growth of HR outsourcing in India are confidentiality and cost factors. Besides the fear of losing jobs, losing control over confidential data, ethics and quality of outsourcing vendors, security breaches and overall confidence in the vendors deters many organisations. Quality at times forms another roadblock. According to Mahajan, most companies are not sure about the end result, which they will receive from the vendor. Also currently there are no standard benchmarks available so pricing varies a lot from vendor to vendor for similar services. This gives the customer the feeling that they are not getting best value for their money, he adds. But, as the Hewitt survey puts it with economic slump showing signs of improvement, many HR outsourcing vendors are optimistic that things will look up in the near future. Experts also believe that in present times HR outsourcing is undergoing a transition phase. "There has also been a transition on its user acceptance, where it is moving from a corporate domain to public sector undertakings and the government sector. However, it would still be sometime before we see increased levels of HR activities being outsourced," they say.

Key Points we noted:

HRO market is still in transition Vast difference exists between the state of HRO market in India and the global scenario People not yet clear about HRO in India Public Sector hasnt yet taken to outsourcing Cost/benefits and confidentiality are most important considerations in HRO More freelancers exist in the market than organized players Size of companies is also an important factor in HRO

HRO is expected to gain momentum in the coming years

8. Research Methodology

Research methodology is way to systematically solve the research problem. Research, incommon terms refers to a search for knowledge. Research methodology consists of different steps that are generally adopted by a researcher to study the research problem along with the logic behind them.

1. RESEARCH DESIGN:
Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research question. Descriptive research design was chosen for the present study .

DATA SOURCES
The study is mainly based on the data collection from primary as well assecondary sources.

Primary data:
Data collected for specific purposes in the form of questionnaire

Secondary data:
Data existing in the form of Books, Internet Catalogues etc

SAMPLING DESIGN: Definition of population:

The hr department of companies.

Sampling size:
A sample of 10 people was selected from the target population for the study.

Statistical tool:- Percentage method STATISCAL TOOLS:

For the purpose of analysis, percentage methods are used for the calculation and the result was interpreted. This test was used to minimize the error of thedata collected. Graphs were used to represent the data for the better and accurate interpretation of the result.

PERCENTAGE ANALYSIS:

Percentage refers to a special kind of ratio in making comparison between two or more data and to describe relationships between the data. Percentage can also be used to compare the relative terms, the distribution of two or more series of data .

Percentage= no of respondent/ total respondent* 100

Two methodologies were adopted while undertaking the research: Secondary data collection: large amount of secondary data is available in the forms of articles, journals, and previously conducted researches on the similar topics. This data was collected and studied to determine some of the broad trends prevalent in HR outsourcing across the world and the presence of HR outsourcing industry in India. Also, the data thus gathered helped in identifying key parameters to examine through further exploration and thus helped in defining the hypotheses for further study as well as designing the questionnaire. Primary data collection: Primary data was collected through the means of a sample survey. For this purpose, a questionnaire was mailed to some of the HR managers and executives in various organizations and their response was solicited. The data collected through this survey was then analyzed to determine patterns and for testing the validity of the hypotheses formulated.

Sampling technique:
The sampling technique used for the survey was non-probabilistic in nature. Convenient sampling technique was used owing to limited number of resources for carrying out the research. Also, the respondents chosen were from varying sectors and thus provided a good estimate of the overall picture prevalent. Target group for carrying out the survey was the HR departments of various organizations. The study objective itself omitted the need to study small scale organizations as they generally dont have a separate HR division as such and hence were not considered for carrying out the survey.

8.2 Data Collection:

A questionnaire was developed and administered via email to the respondents. The questionnaire was accompanied by an introductory letter stating the purpose of the research and promising confidentiality. Responses were then collected and analyzed to arrive at certain conclusions.

DATA ANALYSIS
Use any HR services form outsourcing
NO.OF S. NO 1 2 PARTICULER Yes No TOTAL RESPONDENT 7 3 10 % OF

RESPONDENT 70.% 30.% 100.00%

INTERPRETATION: 70. % of the respondents are using hr outsourcing and remaining 30% are not outsourcing any HR services.

You outsourced any HRM service by your

organization.

S. NO 1 2 3 4 5

Factors providing temporary staff Recruitment &selection Training &development managing payroll system managing benefits

NO.OF RESPONDENT 2 2 2 3 1

% OF RESPONDENT 20.00% 20.00% 20.00% 30.00% 10.00%

INTERPRETATION:
This table shows that 30% of the organization say under the managing payroll system and 10 % says under the managing benefits factors by HR outsourcing Research & selection 20%and also 20% of the respondents in a other option.

This factors are major reasons for outsourcing HR services

NO.OF RESPONDENT 5 3 system & 2 20.00% % OF RESPONDENT 50.00% 30.00%

S. NO 1 2

Factors Cost savings Increased capacity Access to technology better

INTERPRETATION:
This table shows that 50% of the respondents are agree on cost saving followed by 30% comes under the increased capacity and The least no of the respondents 20% comes under the others factors.

Some major risks associated with outsourcing HR services

S. NO 1 2 3 4 Factors mismatch of culture security of database financial stability of chosen vendor justification calculation of cost-benefit 3 30% NO.OF RESPONDENT 2 3 2 % OF RESPONDENT 20% 30% 20%

This table shows that 30% of the respondents are said security of database& justification of cost-benefit calculation are higher major risks associated . The least no of the respondents 20% comes on mismatch of culture& financial stability of chosen vendor

While outsourcing more than one HR services, which of the following approach do you utilize.
1 consolidating all HR services under one vender Employing different vender for different HR services according to specialization Total 3 30.00%

7 10

70% 100.00

INTERPRETATION: 70. % of the respondents are agree on Employing different vender for different HR services according to specialization and remaining 30% are under one vender..

These parameters are most important parameters for vendor selection.

NO.OF RESPONDENT 4 2 3 1 % OF RESPONDENT 40% 20% 30% 10%

S.NO 1 2 3 4

PARAMETERS Cost brand name of service provider Range of services being offered Others flexible options

This table shows that 40% of the respondents are said the cost is most important parameters for vendor selection The least no of the respondents 10% comes on Others flexible options

You agree on that outsourcing HR services has achieved its purpose for your organization .

S.NO 1 2

PARTICULER Yes No

Total

NO.OF RESPONDENT 6 4

10

% OF RESPONDENT 60% 40%

100%

INTERPRETATION: 60. % of the respondents are said yes achieved and remaining 40% are said No. that no achieved its purpose in organization

The measuring of effectiveness on the outsourcing HR services.

S.NO 1 2 3 4 PARTICULER None cost saved due to outsourcing service level improvement increase in employee satisfaction Total NO.OF RESPONDENT 2 4 3 2 10 % OF RESPONDENT 20% 40% 30% 20% 100%

INTERPRETATION:
This table shows that 40% of the respondents are said satisfaction cost saved due to outsourcing is effectiveness The least no of the respondents 15% comes on increase in employee

. Limitations
The limitations of our research are: The sample which we took does not represent the whole population as the numbers of respondents were very less We used convenience sampling technique owing to limited resources which is not ideal for this kind of research Our limited experience was another constraint on the quality of the research We could not include the HRO vendors in our research to gain their perspective Our respondents were from specific areas and did not cover the whole of India We missed out on some sectors in our research

10.

Findings
There 70. % of the respondents are say yes and remaining 30% are say no. for outsource any HR services. There 25% of the respondents say under the managing payroll system and 15 % says under the managing benefits factors Research & selection 20%and also 20% of the respondents in a other option.

There 40% of the respondents are agree on cost saving followed by 30%

comes under the increased capacity and 20% of the respondents under the better system. The least no of the respondents 10% comes under the others factors. Here70. % of the respondents are agree on under different vender and remaining 30% are under one vender.. It fined 60. % of the respondents are said yes achieved and remaining 40% are said No. that no achieved its purpose in organization

40% of the respondents are said more effective followed by 25% comes on service level improvement and 20% of the respondents said none. The least no of the respondents 15% comes on increase in employee satisfaction

Conclusion
strategy outsourcing has come to stay in Human Resources: Low end and non core process in HR will get outsourced HR expertise area will be outsourced for some more time till org. build capability Employee relation and strategic HR will remain in-house Challenge will be of matured long term business partner for outsourcing

Sites names:www.hrVillage.Com www.EUSD Human Resources www.HR.COM www.HRdiv.org

BOOKS

Marketing and Human Resource Management TY Bcom Paper 3 By Dr. Parag Ajagaonkar,Anjali Patkar International Human Resource Management By K Aswathappa, Sadhna Dash Human Resources Management : Fourth Edition by Mirza S Saiyadain Human Resource Management T.Y. BMS by Bhavana,Chauhan Publisher: Sheth Publishers

I-Questionnaire

Survey on current trends in HR Outsourcing Data being collected through this questionnaire is purely for academic research and will be kept confidential. (Please put X against an option to select it.) Name of Organization: Location: Which sector your organization belongs to?
Manufacturing Sector IT Sector I T E S / B P O S e c t o r R e t a

i l S e c t o r F M C G S e c t o r Government Organization Any other, Please mention

For how long has your organization been in service?

< 3 years 3 years 5 years > 5 years

Do you outsource any of your HR services?

Yes No

If the answer to above question is No, skip next question

Which of these HRM services are outsourced by your organization (Select all services being outsourced)?

HR service Providing Temporary staff Recruitment & selection Training & Development Managing Payroll systems Managing benefits Conducting Employee surveys Complete HR function

Which of these factors are major reasons for outsourcing HR services? Cost savings Increased capacity Lack of internal staff / capabilities Access to better systems and technology Other factors (Please mention)

Which of these are major risks associated with outsourcing HR services? Mismatch of cultures Security of Database Financial stability of chosen vendor Justification of cost-benefit calculations Other factors (Please mention)

While outsourcing more than one HR services, which of the following approach do you utilize? (Organizations which dont outsource HR services skip this question.) o Consolidating all HR services under one vendorEmploying o different vendors for different HR services according to specialization

While outsourcing HR services, which of these parameters are most important parameters for vendor selection. (Please rank them from 1 onwards in order of decreasing importance.)
Cost Brand Name of Service Provider

(Proven Track Record) Range of Services being offered

Flexible Contract Options Other factors (Please mention)

Do you think that outsourcing HR services has achieved its purpose for your organization? (Organizations which dont outsource HR services skip this question.)
Yes No

Which metric do you use for measuring the effectiveness of outsourcing HR services? (Please select all the measures being used.) None Cost saved due to outsourcing Service level improvement Increase in employee satisfaction Other factors (Please mention)

A****************** Thank You for Your Time******************* ny comments on HR outsourcing trends

References/ Bibliography