This document discusses human resources (HR) outsourcing. It defines HR outsourcing as moving HR functions, like payroll, training, and benefits administration, to an external service provider. Common reasons for outsourcing HR include enabling companies to focus on core operations, reducing costs, ensuring compliance, and transferring HR risks. The document outlines services offered by HR outsourcing providers and advantages like risk reduction, increased efficiency, and reduced costs. Potential disadvantages include loss of control over HR processes and data security issues. It also discusses factors companies consider when deciding whether to perform HR activities internally or outsource them.

1. 01
HR
Outsourcing
By Monu

2. Outsourcing is a subcontracting
process about a business function
or specific business activity to a
third party.
Outsourcing is a business practice
in which a company hires a third-
party to perform tasks, handle
operations or provide services for
the company.
Outsourcing

3. 03
Human Resources
outsourcing is the
process of moving your
HR functions to an
external service
provider for them to
handle and execute any
necessary actions, as
well as giving
advice and helping to
formulate HR strategies.
HR Outsourcing

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Services offered by
HRO
• Payroll and tax administration
• Employee training and development
• Policy creation and workplace safety
• Recruitment and onboarding
• Benefits administration
Compliance and risk management

5. Need Of HR Outsourcing
05
1.Enabling businesses to focus on core
operations
2.Delivering cost savings – whether direct or
indirect
3. Helping to create a stable, cost-effective
operating platform
4. Transferring focus from internal processes to
achievement of business goals
5. Realizing investment in HR transformation and
IT systems
6. Ensuring compliance with legal, regulatory and
best practice requirements
7.Transferring risk and liability for people issues

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Advantages of HRO
1.Risk reduction and transfer
2. Minimizing risks
3. Increasing efficiency
4. Improved employee engagement
5. Focusing on revenue generating
activities
6. Improving HR technology
7. Time saving ( for long term goals)
8. Reduce costs
9. Improve operating performance
10. Effective use of resources

7. 07
1. Misuse of Resources
2. Compromise with
quantity
3. Poor quality
4. Loss of control
5. Data insecurity
6. Cultural Changes
Disadvantages

8. Values of HR
Activities
• Any resource of firm- skill, knowledge
or task are known as value when it
helps to form strategies that result in
enhance efficiency and effectiveness.
• Help in competitive advantage
• Activities which is not valuable, the
activities doesn’t contribute to the core
competencies of the firm are
outsourced.
• As the benefits if activities to the
customer increase, the values increase
as well
08

9. Uniqueness of HR
Activities
It refers to rarity or scarcity in eternal
market .
• High Values- Activities may range from those
that are instrumental to achieving
organizational objectives.
• Low Values- Primarily administrative in
nature.
• Low Uniqueness- in routine
• High Uniqueness- Idiosyncratic for firm ( add
specific effects in organization)
09

10. Decisions About
Internal And
External
Deployment
10

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