HR is one critical function that decides the foundation of an organization. People management plays a key role in writing the success story of any organization. So for any company to rise high on the success chart its core HR services should not only be intact but also impactful.

1. 5 Vital Reasons for HR Outsourcing
HR is one critical function that decides the foundation of an organization. People
management plays a key role in writing the success story of any organization. So
for any company to rise high on the success chart its core HR services should not
only be intact but also impactful. With so many players entering the market the
companies have to have the best talent to execute their business plans to excel
over their competitors. For the smooth and effective running of a business it is
very important that the people management in the company is highly valued and
retained.HR services not only fetch competent people in the company but help to
add resources that add value to the company and are the key contributors in the
ROI.HR outsourcing has been into practice in the market since a long time but it
gained momentum in the economic downturn of 2008.Verticles like payroll and

2. accounting are of critical importance and account for proficiency, expertise and
cost. Such verticals are outsourced by companies to save both time and money.
Now with time outsourcing has gradually become a practise for all the companies
irrespective of their domains. The process of outsourcing not only unwinds the
company from the burden of looking for apt people for their company, train and
manages them but also helps as a helping hand to focus on their goals and market
strategy for better deliveries. With the changing market dynamics outsourcing is
not just a trend but has become the need of the hour. There are various reasons
for which the companies should and must consider outsourcing their HR services.
Some of them are as stated below.
Cost Effective: Hiring a candidate not just involves an interview process as it looks
on the face value but it is a process that involves a detailed and descriptive
analysis of the job concerned, the key skills required for the job and the espective
KRA’s related to it. There is a lot of research work that goes behind creating a
position required in the company, preparing the Job description, deciding on the
remuneration part, screening the candidates, interviewing them, taking them on
board, handling their joining formalities, train them, maintaining and cross
checking their documents, handling their salaries and their performance reviews
etc. All these activities in turn are the cost to the company as it involves a lot of
time and contribution. So now an all time solution for this problem is outsourcing
the HR services to a third party which would take care of the entire people
management at their end and the render their services for the company
concerned.
Saves Time: Once the services have been outsourced to a third party the
company is only concerned about the delivery part. The management is not
required to invest their time on people management for their company. They can
rather focus on the USP and the much required marketing strategies to stay
ahead of their competitors in the market. It saves a lot of time which can be
utilized for studying the market trends, their competitors, the changing market
trends and dynamics and formulate their marketing strategies accordingly. The
best part of outsourcing the HR services is that the responsibility of the most
critical function i.e. people management rests on the shoulders of the third party

3. which in turn gives them ample time for a SWOT analysis which gives them a
clarity on the performance chart as an organization.
Expands Knowledge Base: Outsourcing the HR services gives an avenue to the
corporate to get in touch and interact with the HR experts in the market who are
fully aware and acknowledged to the changing market dynamics and its
requirements and source candidates and HR processes accordingly. It helps them
to get connected and partner with experts who act as HRprenuers. They take the
entire ownership of the HR process and manage them starting from recruiting the
candidates up to managing them.
Helps to focus on the greatest competitive strength: When the management
becomes free from the stress of HR functions it can entirely focus on the key
functional areas and core competencies of its business strategies. This helps them
do a complete SWOT analysis, study and analyze their USP’s and core
competencies and do the necessary changes as and when required to keep pace
with the changing trend in the volatile market and benchmark its services and
maintain the brand value of the company in the market. It also helps the
companies keep a track of the pool of talent available with the competitors and
trace and track them through lateral hiring or head hunting.
Builds Employer Brand: With so many players in the market it becomes very
important for any company to maintain a brand value for the company.
Outsourcing of the HR services helps the company get a professional and polished
image. As when the company hires a third party to manage its HR services it is
actually providing a platform for its brand image to be portrayed and carried
forward among the candidates as well as the corporate which helps in brand
building.