HR Outsourcing

HR Outsourcing

Published: 08/30/2010

Human resources are the most critical assets of any organization as the organization's success lies in their hands. But in order to ensure that its employees remain satisfied, the company has to have a specialized human resources department that most of times proves to be a costly affaire. That is why most companies today; decide to outsource their human resources management functions to offshore destinations.

What is HR Outsourcing?
HR outsourcing is a process in which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service provides located in offshore destinations like India, China, Philippines, etc.

In this sense the HR outsourcing service providing firms or hr outsourcing company can be divided into four categories depending on the services they offer as, PEOs (professional employer organization), BPOs (business process organization), ASPs (application service providers), or e-services. In these categories the PEOs are the ones that assume full responsibility of a company's hr functions where as others such a BPOs, ASPs and e services provide web based hr solutions like database maintenance, HR data warehousing, maintaining records, developing and maintaining hr software's etc.
Advantages of HR Outsourcing
HR outsourcing including personal outsourcing case studies have indicated that managing human resources involves specialized activities such as training, payroll administration, employee database management, employee retention, employee benefits and a lot more that many companies either don't have the proper resources or time to manage on their own. By outsourcing their HR functions companies can save huge amounts of money and be free of complications that are otherwise involved in maintaining an internal HR department. By doing so, companies can concentrate on their core competencies saving their valuable time and resources.

To sum it up, human resources outsourcing that includes hr recruiting outsourcing helps cut costs, helps concentrate on core business and most importantly helps in ensuring employee satisfaction.

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HR Outsourcing
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