Next Level Latest Assignment in HR Consulting


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This is a latest assignment in HR consulting Solutions to one of the major brand in India.

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Next Level Latest Assignment in HR Consulting

  1. 1. HR Solutions HRO, Why & Who should Outsource HR
  2. 2. Agenda <ul><li>: HR Outsourcing Overview </li></ul><ul><li>: Impact on Companies </li></ul><ul><li>: Impact on HR Profession </li></ul><ul><li>: Impact on Your Career </li></ul><ul><li>: Selecting, Managing, and Measuring Outsourcing Providers </li></ul><ul><li>: Helpful Resources </li></ul>
  3. 3. What is Outsourcing? <ul><li>The performance by outside parties, on a recurring basis, of tasks that would otherwise be performed in-house. </li></ul>
  4. 4. Other Definitions <ul><li>: In-sourcing </li></ul><ul><li>: Off-shoring </li></ul><ul><li>: Co-sourcing </li></ul><ul><li>: Geo-sourcing </li></ul><ul><li>: Outplacement </li></ul>
  5. 5. Types of Outsourcing <ul><li>: Business Process Outsourcing </li></ul><ul><li>: Information Technology - 28% </li></ul><ul><li>: Human Resources – 16% </li></ul><ul><li>: Sales & Marketing – 15% </li></ul><ul><li>: Finance – 11% </li></ul><ul><li>: Administrative – 9% </li></ul><ul><li>: All Others – 22% </li></ul>
  6. 6. How Common is HRO? <ul><li>: 58% of companies outsource some HR function </li></ul><ul><li>: 91% of companies with $1 billion+ annual revenues are now considering HRO </li></ul>
  7. 7. The HRO Market <ul><li>: In next 5 years, global spending on HRO will double – from $40 billion to $80 billion </li></ul><ul><li>: From 2008 to 2010, 44% increase in large firms that would consider HRO </li></ul>
  8. 8. Why Outsource? <ul><li>: Allow HR to focus on core competencies </li></ul><ul><li>: Creates strategic opportunities for HR professionals </li></ul><ul><li>: Improve quality, efficiency, and effectiveness </li></ul><ul><li>: Relief from administrative burdens </li></ul><ul><li>: Reduce operating costs </li></ul>
  9. 9. Other Benefits to HRO <ul><li>: Access to outside HR expertise </li></ul><ul><li>: Greater diversity of HR services </li></ul><ul><li>: Leverage vendor investments in technology rarely available to HR organization </li></ul><ul><li>: Limit fiduciary, audit, and litigation risks and liabilities </li></ul><ul><li>: Upgrade level of customer service </li></ul><ul><li>: Ease time pressure demands </li></ul><ul><li>: “Better, faster, cheaper” </li></ul>
  10. 10. When to Outsource <ul><li>: High HR service delivery costs </li></ul><ul><li>: No further investment in technology </li></ul><ul><li>: End administration of transactions and focus on strategic work </li></ul><ul><li>: Improve quality of HR services </li></ul><ul><li>: Strong business case </li></ul><ul><li>: Other business reasons </li></ul>
  11. 11. Considerations <ul><li>: Core Competency? </li></ul><ul><li>: Best in Class? </li></ul><ul><li>What is your vision for your HRM business? </li></ul><ul><li>What metrics will measure progress toward vision? </li></ul><ul><li>What business outcomes are needed from the HRM aspects of the business? </li></ul>
  12. 12. Poor Reasons to Outsource <ul><li>: Do not outsource just because you are frustrated </li></ul><ul><li>: Do not outsource as a last resort, just because you have tried everything else </li></ul>
  13. 13. Outsourcing Myths <ul><li>: Outsourcing is just a fad </li></ul><ul><li>: Outsourcing can be kept secret from employees </li></ul><ul><li>: Outsourcing is only for the largest companies </li></ul><ul><li>: Messes must be fixed before outsourcing </li></ul><ul><li>: Outsourcing is for everyone </li></ul>
  14. 14. Trends in HR Outsourcing Market <ul><li>: Specialization </li></ul><ul><li>: Globalization </li></ul><ul><li>: Standardization </li></ul><ul><li>: Regionalization </li></ul><ul><li>: Consortia Buying </li></ul><ul><li>: Mid-market Mania </li></ul><ul><li>: Utility Model Evolution </li></ul><ul><li>: Consolidation and Partnering </li></ul>
  15. 15. The Future of HRO <ul><li>Growth-Maturation of HRO market </li></ul><ul><li>Increasing weight of non-cost drivers </li></ul><ul><li>“ Commodization” of HR functions </li></ul><ul><li>New roles for internal HR departments </li></ul><ul><li>New career opportunities for HR professionals </li></ul>
  16. 16. Impact on Companies <ul><li>: Employee reactions </li></ul><ul><li>: HR executives taking part in operational and strategic decisions </li></ul><ul><li>: Elimination of bureaucracy </li></ul><ul><li>: Customer service improvements </li></ul>
  17. 17. Impact on Companies (cont’d) <ul><li>: Growth of self-service platform </li></ul><ul><li>: Slimming down staff </li></ul><ul><li>: Cost savings </li></ul><ul><li>: Model will serve to guide other organizational functions </li></ul>
  18. 18. Satisfaction <ul><li>Recent survey of 129 large companies representing 2 million employees: </li></ul><ul><li>: 89% satisfied with outsourcing arrangement </li></ul><ul><li>: 85% achieved hoped-for benefits </li></ul><ul><li>: Additional 20% achieved unexpected benefits </li></ul>
  19. 19. INDIA Corporate Office - New Delhi The Polkas E-5, Defence Colony New Delhi-110024 E-mail:   India (Noida Office) Block No A Sector 61 Noida-201301 +91-120-4214632 E-mail:  For all enquiries, please contact: USA  Global Office - Norwalk 12052 E. Imperial Hwy., Ste. 200  Norwalk, Greater Los Angeles CA 90650  Phone:+1-562-301 5515 Fax: +1-562-863-3863  E-mail: