sanjay project.doc

7/30/2019 sanjay project.doc

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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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sanjay project.doc

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