Human Resource Outsourcing (HRO)

HR outsourcing is becoming the most outsourced business process according to recent data provided by Gartner. Projected forecasts show that HR outsourcing is growing at an annual rate of 8.6% a year and will grow to almost $40 billion by 2007. Additionally, Gartner estimates that 85% of US enterprises will outsource at least one component of their HR functions by the end of 2005.

HRO is the outsourcing of peripheral but necessary administrative tasks such as

- 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 (Workers' compensation, dispute resolution, safety inspection, office policies and handbooks).

- Education/Training

HR outsourcing is still in early days; it would still be sometime before we see increased levels of HR activities being outsourced to offshore locations. Lack of domain knowledge, data security, data privacy and quality could be the critical issues hampering the growth of HR outsourcing to the offshore locations.

NASSCOM the industry association of Indian IT and ITeS provider's says India has immense potential to address HRO. Nasscom estimates that HRO would offer around quarter million jobs during this financial year..

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Top Stories

Next up for offshoring: SMEs  Small and mid-sized businesses (SMEs) are poised to take up outsourcing and offshoring in increasing numbers, according to industry group the National Outsourcing Association (NOA). AmeriCredit Renews Business Process Outsourcing Contract With CSC Leading Auto Finance Company Renews Insurance Tracking Agreement contract with CSC. Through this business process outsourcing (BPO) relationship, AmeriCredit will continue to monitor insurance coverage required for its customers Now it is outsourcing advocates Legal outsourcing to India seems to be fast catching up in the US, with large number of attorneys in Grand Forks increasingly relying on lawyers, sitting thousands of miles away, in cities like Bangalore, Delhi and Chennai, drafting legal briefs and doing Renault Drives to Outsourcing Looking to simplify and reorganize its IT operations, French car maker Renault has signed three outsourcing deals with Hewlett-Packard, Computer Sciences Corp. and Atos Origin worth a total of $790 million Mellon sells HR and outsourcing arm US Financial Corporation today announced that it is to sell the human resources consulting and outsourcing businesses of its Human Resources & Investor Solutions sector to Affiliated Computer Services. European travel services firm plans more ... European travel service TUI AG is expanding its IT outsourcing in India to further reduce costs and become more competitive in the travel booking market, an IT executive at the company's UK division said earlier this month

Service Provider News

Nasscom signs pact with UGC Nasscom and UGC will jointly undertake a 'Faculty Development Programme' for up gradation of the skill-sets and knowledge base - in emerging technologies and project management (related to information technology) - India, Philippines to get larger share of outsourcing pie India and the Philippines are set to corner a larger share of the global offshoring business with 127,000 new call centre jobs likely to be added in the two countries over the next five years, says a study. India unit of Xansa taps outsourcing growth The Indian unit of Xansa, a Britain-based computer-services provider whose clients include Walt Disney and BT Group, is planning to expand its Indian work force fourfold to serve customers in the United States and Europe. Accenture to up scope of India delivery centers Accenture, the $14 billion company in addition to serving the needs of its clients is looking at moving a few of its own business processes to India. It is also looking at exploring infrastructure management for its clients in a major way in India.

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Jonathan Harrison

Managing Director

Baroni  Limited

+44 (0)7770 740 133

+44 (0)20 8660 6457

+44 (0)20 8645 9297

 jonathan-harrison@tiscali.it

 

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