Human Resource Outsourcing: An Emerging Trend in Corporate Sector

Abstract

Human resource outsourcing is an emerging trend in today's corporate sector. Outsourcing of HR is growing all over the world, driven by the philosophy that if you don't have the ability to offer a world-class service, then the best option is to partner with someone who has that ability. Successful outsourcing calls for a mix of client skills, business skills and technical skills, which are incidentally found to be more among the service providers than the outsourcing companies. The outsourcing firms should also have leaders who can garner support of employees throughout the organisation for the outsourcing initiative. They must display strategic thinking and deal-making capacity, besides the ability to anticipate resistance to change and to surmount it positively. In the coming years, HR outsourcing will become an important driver of long-term value for companies. The article discusses the evolution of human resources outsourcing specific in Indian scenario. This paper also highlights the major reasons, benefits and pitfalls of HR outsourcing.