1. HR Outsourcing (HRO): Its Impact on
Your Company, Your Career, and the
HR Profession

2. AGENDA
What is HR
What is Outsourcing
Commonly outsourced HR services
Advantages
Disadvantages
Future of HRO
Impact on HR profession

3. What is HR
HR is the set of individuals who make up the
workforce of an organization, business sector,
or economy.
Likewise, other terms sometimes used include
"manpower", "talent", "labour", or simply
"people".

4. What is Outsourcing
The performance by outside parties on a
recurring basis, of tasks that would otherwise
be performed in-house.
 Outsourcing includes
both foreign and
domestic contracting.

5. Typesof Outsourcing
 Business Process Outsourcing.
 Information Technology.
 Human Resources.
 Sales and Marketing.
 Finance.
 Administrative.
 All others.
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6. Other Sourcing benefits
 Access to outside HR expertise.
 Greater diversity of HR services.
 Upgrade level of customer service.
 Ease time pressure demands.
 “ Better , faster , cheaper”.
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7. Advantagesof Outsourcing
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 Allow HR to focus on core competencies.
 Creates strategic opportunities for HR
professionals.
 Improve quality, effectiveness and efficiency.
 Relief from administrative burdens.
 Reduce operating costs.

8. Disadvantagesof Outsourcing
 Over promise and under deliver.
 Information leaks.
 Loss of institutional knowledge.
 Non performance of key function.
 Lack of fit with company’s culture.
 Organisational resistance.
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9. Future of Outsourcing
 Growth-Maturation of HRO market
 Increasing weight of non-cost drivers
 “Commodization” of HR functions
 New roles for internal HR departments
 New career opportunities for HR
professionals
 Expansion of small/mid-sized HRO markets

10. The Future of Outsourcing(cont’d)
Demographic changes
 Improved HRO metrics
 Reshaping of industry

11. Impacton HR Profession
 Internal HR at significant disadvantage in cost
per transaction
 Loss of control of key processes
 Enhanced credibility
 Strategic focus
 Decentralized structure
 Internal politics – HR as business partner
 Move to customer service culture

12. Impact onHR Profession (cont’d)
 Management and Organizational
Development – big picture view
 New roles – consultant and HR strategist
 Develop competencies to remain valuable
 HR is exposed and more visible as
organizational function
 HR is far more measurable
 Align HR strategy with corporate goals

13. Points tobe considered
 Financial stability
 Proven service track record
 Local market presence
 Flexibility in service offering
 The background

14. Outsourcing Myths
 Outsourcing is just a fad
 Outsourcing can be kept secret from
employees
 Outsourcing is only for largest companies
 Outsourcing is for every one
 Messes must be fixed before outsourcing

15. Question ?