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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
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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 _____________, o
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
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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 :
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CONTENT PAGE NO
Objectives of the
study
1-3
Company Profile
4-11
Literature Review
12-13
Research
Methodology
14-16
Data Analysis
17-31
Findings
32-32
Conclusion
Bibliography
33-33
Recommendations
Bibliography
34-34
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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 value-
added 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
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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, wetried 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
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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
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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 "non-
core" 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 re-
engineering, 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
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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 third-
party 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
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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 andaccuracy 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.
AonAon plc is the leading global provider of risk management services, insurance andreinsurance 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 ofBusiness 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
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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 ratedreinsurers 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
SSONSSON 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
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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,
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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 HR
outsourcing industry.
To analyze the risk level during the HR outsourcing
To analyze the outsourcing factors are help to vender selection.
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5. Literature review:
G lobal Scenar io
S H R M H u m an R e s ou r ce O u ts o u r c ing Su r vey R epo r t
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 co-
manages 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. Someof 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.
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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
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P re s ent s cenar io in I nd ia
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 tomanage 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."
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"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,
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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
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HRO is expected to gain momentum in the coming years
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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:
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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 validityof 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.
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DATA ANALYSISUse any HR services form outsourcing
S. NO PARTICULER NO.OFRESPONDENT
% OFRESPONDENT
1 Yes 7 70.%
2 No 3 30.%
TOTAL 10 100.00%
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
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organization.
S. NO FactorsNO.OFRESPONDENT
% OFRESPONDENT
1 providing temporary staff 2 20.00%
2 Recruitment &selection 2 20.00%
3 Training &development 2 20.00%
4 managing payroll system 3 30.00%
5 managing benefits 1 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.
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This factors are majorreasons foroutsourcing HRservices
S. NO FactorsNO.OFRESPONDENT
% OFRESPONDENT
1 Cost savings 5 50.00%
2 Increased capacity 3 30.00%
3Access to better system &technology 2 20.00%
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.
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Somemajorrisks associatedwithoutsourcing HRservices
S. NO Factors
NO.OF
RESPONDENT
% OF
RESPONDENT
1 mismatch of culture 2 20%
2 security of database 3 30%
3 financial stability of chosen vendor 2 20%
4justification of cost-benefitcalculation 3 30%
This table shows that 30% of the respondents are saidsecurity of database& justification of cost-benefitcalculation are higher major risks associated. The least no of the respondents 20% comes onmismatch of culture& financial stability of chosen
vendor
Whileoutsourcing more than one HRservices,which of the following
approachdo you utilize.
1 consolidating all HR services under one vender 3 30.00%
2Employing different vender for different HR services according tospecialization 7 70%
Total 10 100.00
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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..
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These parametersaremostimportant
parametersfor vendorselection.
S.NO PARAMETERSNO.OFRESPONDENT
% OFRESPONDENT
1 Cost 4 40%
2 brand name of service provider 2 20%
3 Range of services being offered 3 30%
4Others flexible options 1 10%
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
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You agree on that outsourcing HRserviceshas
achieved its purposeforyour organization.
S.NO PARTICULER NO.OFRESPONDENT
% OFRESPONDENT
1 Yes 6 60%
2 No 4 40%
Total 10 100%
INTERPRETATION: -
60. % of the respondents are said yes achieved and remaining 40% are said
No. that no achieved its purpose in organization
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The measuring of effectivenesson theoutsourcing HRservices.
S.NO PARTICULER NO.OFRESPONDENT
% OFRESPONDENT
1 None 2 20%
2 cost saved due to outsourcing 4 40%
3 service level improvement 3 30%
4 increase in employee satisfaction 2 20%
Total 10 100%
INTERPRETATION:
This table shows that 40% of the respondents are said cost saved due to outsourcing is
effectivenessThe least no of the respondents 15% comes on increase in employee
satisfaction
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. 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 theirperspective
Our respondents were from specific areas and did not cover the whole of India
We missed out on some sectors in our research
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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
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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
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Sites names:-
www.hrVillage.Comwww.EUSD Human Resources
www.HR.COM
www.HRdiv.org
BOOKSMarketing 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
http://www.hrvillage.com/https://sites.google.com/a/eusd.org/eusd-hr/http://www.hr.com/http://www.attano.com/store/product/753-Marketing-and-Human-Resource-Management-TY-Bcom-Paper-3?s=HigherEdhttp://www.attano.com/store/product/2880-International-Human-Resource-Management?s=HigherEdhttps://sites.google.com/a/eusd.org/eusd-hr/http://www.hr.com/http://www.attano.com/store/product/753-Marketing-and-Human-Resource-Management-TY-Bcom-Paper-3?s=HigherEdhttp://www.attano.com/store/product/2880-International-Human-Resource-Management?s=HigherEdhttp://www.hrvillage.com/ -
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Survey on current trends in
HROutsourcing
Data beingcollectedthrough this
questionnaire is purely foracademic
researchandwill be keptconfidential.
(Pleaseput X against an
option to selectit.) Nameof
Organization:Location:Which sectoryour organizationbelongs to?
Manufacturing SectorIT SectorI
T
E
S
/
B
P
O
S
e
c
t
o
r
R
e
t
a
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i
l
S
e
c
t
o
r
F
M
C
G
S
e
c
t
o
rGovernment OrganizationAny other, Please mention
For how long has your organizationbeen in service?
< 3 years3 years 5 years> 5 years
Do you outsource any of your HR
services?Yes
No
Ifthe answer to above questionis
No,skip next question
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HRserviceProviding Temporary
staffRecruitment & selection
Training &DevelopmentManaging Payrollsystems
Managingbenefits
ConductingEmployeesurveys
Complete HRfunction
Which ofthese HRM servicesare outsourced by your
organization(Selectall servicesbeing outsourced)?
Which ofthesefactors are majorreasons for outsourcing HR
services?
Cost savings Increasedcapacity Lackof internal staff/ capabilities Accesstobettersystems and
technology Other factors (Pleasemention)
Which oftheseare majorrisks
associatedwith outsourcing HRservices?
Mismatch of cultures Security of Database Financial stability ofchosen vendor Justification ofcost-benefit
calculations Other factors (Pleasemention)
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Whileoutsourcing more than one HR
services,which of the followingapproachdo you utilize?
(Organizationswhich dontoutsourceHRservices skip this question.)
o Consolidating all HRservices
under one vendorEmploying
o differentvendors for different
HRservices according tospecialization
Whileoutsourcing HRservices,
which ofthese parametersaremostimportant parametersforvendorselection.(Pleaserankthemfrom 1 onwards in orderofdecreasing importance.)
Cost
Brand Name of ServiceProvider(Proven Track
Record) Range ofServicesbeing offered
Flexible Contract Options
Other factors (Pleasemention)Do you think that outsourcing HR
serviceshas achieved its purpose
foryour organization?(Organizationswhich dont
outsource HRservices skip this
question.)Yes
No
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Which metric do you usefor measuring the
effectivenessofoutsourcing HRservices?(Pleaseselectall the measures being used.)
NoneCost saved due to outsourcingService level improvementIncreasein employeesatisfactionOther factors (Pleasemention)
A****************** Thank You for YourTime*******************
ny comments on HR outsourcing trends
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References/ Bibliography
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