GLG News Analyses of the following article:

HR outsourcing gaining steam

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Published at: www.hindu.com

Outsourcing in difficult times

December 5, 2008

Analysis by: GLG Expert Contributor

The concept of outsourcing applies true to the present situation of global economy. Hitherto in the past, some sections of the corporate and politics, commented as redundant but now it is the ideology. With the precarious financial blow and pulling down of business shutters, outsourcing alone can come to the rescue of the Corporate houses. Those who can safely ride on the calculated leverage and assure a promising 'survival and existence' alone can gallop with dollars. How long could this go, is perhaps a question from the corners. Employers may pull along and the employees may not heed to the deteriorating melt down. How many of the third world countries are equipped to handle this, in the absence of its parent company not situated abroad?

HR Outsourcing in India: Really something new?

September 8, 2008

Analysis by: GLG Expert Contributor

The personell market in India is becoming more tight. Despite major numbers of graduates flushing the market, the real potential for international jobs is estimated far lower then the actual number of graduates. Bearing this mind makes the HR outsourcing industry a booming market for the future, as it is in mature markets already.

Jeanette PlowmanIndependent ConsultantJeanette Plowman

While the RPO concept has taken a healthy shape in the Western countries, in India however, the RPO sector is currently at its infant stage.

August 7, 2008

A recent study claimed that the global BPO industry will be worth $230 billion by 2012 and India stands to gain $50 billion of that global pie.  This boom may be in the wake of an U.S. economic downturn as employers who have historically shied away from offshoring may now become more receptive to the idea to cut costs. After the business process outsourcing and knowledge process outsourcing boom, the corporate sector in India is steadily gearing up for a new concept - RPO, which is recruitment process outsourcing. It aims at taking the burden out of the head-hunting. While the RPO concept has taken a healthy shape in the Western countries, in India however, there are only a few RPO firms currently catering to the needs of various domestic as well as multi-nationals in hiring employees for them.  The RPO sector in India is currently at its infant stage. 

Outsourcing - The HR/Human Capital Phenomenom

August 6, 2008

Analysis by: GLG Expert Contributor

Outsourcing HR  is a phenomenom  and the question is whether or not is the means to an important end result?  Is the outsourcing of HR of critical importance to the business world, HR departments, and if so to what end is this a phenomenom or a fade?  A quick look at what HR outsourcing really is and some questions for you to ponder will hel in deciding whether your business is ready for this, needing of this, could, should or would do this, and why? It is highly important to have a clear vision of the organization and the human capital needs contrasted against the business strategies in order to make this decision appropriately. Keep it simple and reduce the business complexities should always be the game.

“HR outsourcing is gaining steam”; But, at what cost?

August 6, 2008

Analysis by: GLG Expert Contributor

People are a leaders most important asset and the differentiation for competitive advantage.  A strategically aligned team is critical to elevate organizational performance to another level. HR’s roles is to deliver, apply and retain effective human resources; people who are aligned, quickly productive and retained to minimize costly transitions and output interruptions; right people, in the right jobs doing the right things. Outsourcing recruitment is a numbers game reducing a firm’s ability to hire the right cultural “attitude”.  Skills are trainable while attitude and psychological preferences are in ones DNA and costly to modify if at all.  Winning organizations evolve from focus, training, shared values, effective 360˚ dialogue, and the freedom to fail in a learning high output environment. Throwing ‘bodies’ at result driven challenges rather than engaging people developed with cultural alignment testing decisions against high level goals is ultimately a more costly approach.   

Outsourced Recruiting is not Outsourced HR

August 6, 2008

Analysis by: GLG Expert Contributor

Although this article is entitle HR Outsourcing, the only function it speaks of is the recruiting function.  While an important aspect of full spectrum Human Resources, Recruiting is one of the easiest to outsource and one which can actually improve the service available to internal employees.  The article does not mention any benefit to the company other than saving costs.  Although the number they quote is not insignificant, I question whether it should be the only measure of success.  Recruiting is a critical component of any company's strategic plan - at least it should be.  Excellent outsourced recruiters take their job of feeding a company's employee pool seriously.  Not so excellent outsourced recruiters will only be focused on cost savings.  One element missing is a description of how the outsourced recruiting firm they speak of learns about the company well enough to represent them and recruit successfully for them.  Recruiting is not just about getting bodies in the door. 

Matthew EatonPresidentMDE Partners

India's HRO Steam is venting elsewhere.

August 5, 2008

There are also many weaknesses to the India HRO/BPO and regarding this article RPO markets. Many of the drawbacks to HRO providers based in India make the Phillippines a safer bet.