These slides talk about What is Human Resource Outsourcing, its importance, advantages & disadvantages and how it is different from Professional Employee Organizations.

1. Subjective Assignment 2
of
MOOC on Academic Writing
(UGC)
Course Name: Academic Writing
Submitted by: Neerja Anand
Application No:02238582e5b111e9bb57a75bde6cd064
Affiliation: IMS Noida

2. ACKNOWLEDGEMENT
DR. AJAY SEMALTY
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3. HUMAN RESOURCE OUTSOURCING
Learning Outcomes:
 To learn about HR Outsourcing Firms
 Functions of HR Outsourcing Firms
 Difference between Human Resource Outsourcers (HRO) & Professional
Employer Organizations (PEO)
 Advantages & Disadvantages of HRO
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4. WHAT IS HUMAN RESOURCE
OUTSOURCING (HRO)?
 HR Outsourcing is basically the allotment of specific HR activities to a more
specialized third party service provider.
 HRO is a strategic move for your organization that frees you and your team
from non-core activities and helps you and your team to focus on the value
you generate for your customers. HRO includes all or parts of HR practices
and is tailor made fit to specific organization.
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5. FUNCTIONS OF HR OUTSOURCING FIRMS
 Onboarding – From Joining Formalities to Document Check to Payroll Set-up
 Data Management & Ongoing Transactions-Employee Letters Leave Management, Employee File
& Record management
 Payroll Management
 Benefits Administration
 Statutory Compliance Management & Coordination- Online Tools
 Employee Benefits Management (PF/ESCI/Leave Benefits / Insurances… etc..)
 Various Labour laws compliances as per applicable acts
 Getting different labour licenses
 Facilitation of Compliance Audits
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6.  HR Helpdesk Set-up- Email/Phone/Web as per the fitment
 Training Administration and Management
 PMS- Performance Management System- Administration and Coordination
 Exit & FFS Activities
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7. HRO: HUMAN RESOURCE OUTSOURCERS
VS.
PEO: PROFESSIONAL EMPLOYER ORGANIZATIONS
HRO Firms can:
 Address all or only a few human resources tasks
 Companies can choose which responsibilities to outsource and which to manage in –house.
 Most HRO company offers services individually so that client can pick & choose which HR
responsibility they want to outsource.
 HROs can manage: payroll, benefits administration, training, risk management & recruitment
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8. PEOs
 PEOs are agencies that provides services under which an employer can
outsource all employee management tasks.
 A hired PEO becomes a co-employer with a client company. PEO serves as the
administrative employer, while the client business acts as the on-site
employer.
 PEO assumes all associated liabilities and legal responsibilities for its clients.
 Since PEO is the employer-of-record, it is responsible for federal and state
taxes, as well as worker’s compensation.
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9. BENEFITS OF HR OUTSOURCING
1. Lowered costs- lowered overhead and other labour costs by allowing HRO to
handle the paperwork and mandatory training.
2. Reduced liability- reduce company liability that comes with hiring & firing
3. Improved office performance- by setting more descriptive job qualifications
and expectations with insight from an HR team
4. Increased company efficiency by allowing employees to focus on the business
instead of payroll and paperwork.
5. It has been argued that outsourcing relationships can create partnerships
between contractors and clients that may facilitate learning and cross
fertilization between the two firms
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10. DISADVANTAGES
1. Secondary costs- such as training or orientations are sometimes hidden.
2. Candidate quality- may not be up to the company standards, without clear
and continuous communication
3. Company culture- could be affected if the HR firm doesn’t have a clear
understanding of your office dynamics.
4. Training time- can be more extensive through the outsourced company than it
would be in-house.
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11. 5. Impact on In-house HR Professionals-
Impact on line managers
Impact on Employees Receiving HR Services
 As a result, it may actually be more costly for the organization to acquire the
HR services from the external provider when all the indirect costs (both
financial and emotional)that may incur in-house are calculated. This is
especially true for large organizations in which employees are highly
professional and highly paid
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12. HR Outsourcing
Companies in India
 AON Hewitt
 ABC Consultants
 Manpower Group
 Peoplestrong
 Adecco
 Ranstad
 OBOX HR Solutions, etc.
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13. REFERENCES:
 Bettis, R.A., Bradley, S.P., Hamel, G. (1992), "Outsourcing and industrial decline", Academy of
Management Executive, 6(1):7-22. Bounfour, A. (1999), “Is Outsourcing of intangibles a real
source of competitive advantage?”, International Journal of Applied Quality Management, 2,
127-151.
 Greer, C.,Youngblood, S. and Gray, D. (1999), “Human Resources Management Outsourcing: The
Make or Buy Decision”, Academy of Management Journal . Hewitt Associates, LLC SWOT
Analysis, Jun2007, p1, 8p; (AN 25629859)
 Jennings, D. (2002), “Strategic Sourcing : Benefits, Problems and a Contextual Model”,
Management Decision, 40(1) : 26-34. Jennings, D.R. (1996), “Outsourcing Opportunities for
Financial Services”, Long Range Planning, 29(3):393-404.
 Quinn, J.B., Doorley, T.L., Paquette, P.C. (1990), "Technology in services: rethinking strategic
focus", Sloan Management Review, Winter: 79-87..
 Ramachandran K and Voleti S (January-March 2004), “Business Process Outsourcing (BPO):
Emerging scenario and strategic options for IT-enabled services”, VIKALPA, 29(1): 49-62
 www.hewittasia.com/hewitt/ap/resource/articleindex/articles/print/delivery_dummies.htmL
 www. Hewitt.com
 www.aon.com
 www.outsourcing-centre.com • www.outsourcing-hr.com/consolidation.html (The Impact of
Consolidation in Human Resources Outsourcing; By John Harney, Business Writer; Publish Date:
May 2004)
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14. FEEDBACK ABOUT THE COURSE
 It is an extremely beneficial and important course for academicians like us
since we are required to write research papers, articles and case studies for
professional enhancement. Hence, it is important to have good academic
writing skills
 The entire course content is well planned and designed in manner which
enables step by step learning. Plagiarism and Journal and Author Metrics were
the two modules I liked the most.
 I am definitely going to take suggestions from the current ‘Academic Writing
Course’ that I’m attending. I sincerely hope to continuously strive to excel as
a professional writer.
 I thank the coordinators of this course to have spent their time and efforts
to compile these modules for the benefit of the entire professional
community.
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