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Outsourcing HR for Competitive Advantage
Human Resources » Case Studies


Chrm Message From: eChoice Training Total Posts: 16 Join Date: 14/04/2007
Rank: Executive Post Date: 12/05/2007 02:51:42 Points: 80 Location: United States

I would like  anybody to  comment on the issue of  "Outsourcing HR for competitive advantage" 
 
few leading questions are: 
1) Do you envision outsourcing additional HR  work in the future? If yes, when? In which 
areas? Why?  For those who are outsourcing some or the other HR  processes: 

2) What benefits have you realized by outsourcing? 

3) Approximately how much do you spend on  outsourcing HR work? 

4) Have you experienced any problems outsourcing?  If yes,  what were they?  EG:(Low quality of work/Lack of understanding  of organization  culture on the part of contractor/Unmet  timeframes/  High cost/Difficulty in identifying competent contractor) 

5) Are you aware of any situations where you  outsourced HR work,  then brought back in-house? If yes, why did you  do so? 

6) If you are outsourcing any HR work, how do you  rate the  relationship between your organization and the  supplier?  POOR / EXCELLENT 

7) In your experience, what would you say are the  5 or 6 most  important issues to address in order to ensure  that.

eChoice Training

Chrm Message From: bimal kapoor Total Posts: 20 Join Date: 14/04/2007  
Rank: Executive Post Date: 16/05/2007 09:20:46 Points: 100 Location: United States

Dear team,

I am a trainer and let me assure you that there are a numberof other trainers out there who are very passionate about their training and developing people. The onus is also on organizations to request for coaching and handholding assistance when skills based programs are being conducted. My response to internal trainers (with due respect) that employess themselves do not take them very seriously thus despite the good work that they do they are not recognized for their efforts. So remember to put a srong post program evaluation in place (not immediate feedback but results achieved from training).

Awaiting for more debates ; )

Bimal Kapoor

Chrm Message From: shantanuji Total Posts: 20 Join Date: 14/04/2007  
Rank: Executive Post Date: 16/05/2007 09:23:56 Points: 100 Location: United States

Hello Friends,

training is a 5 step process - doing need analysis to understand the actual requirements from the training programme, this will help in designing the broad objectives and framework of the training to be imparted, the third stage is compilation of the training material, 4th stage is the actual delivery of the training and the last stage is the feedback collection for future correction if any.

Each of these stages if not done in the correct manner and with the correct inputs it can lead to a training turnning into a disaster. As far as the argument of internal training vs. external training goes both have their positive and negatives or i should say that each has its advantages and disadvantages.

e.g. for any internal trainer.........doing the need analysis maybe very easy, as he/she maybe already aware of the skill gaps existing in the organization........but for an external trainer this has to be done systematically and thoroughly. Also depending upon the culture of the organization, sometimes the acceptibility of an internal trainer could be issue!!! When an external trainer is compiling the material for training he has to be in absolute sync with the level of the participants, their backgrounds, the common language etc. to be able to gain their acceptance and to get the learning process going on. The major advantage of external training is that it brings into the organization a fresh perspective, new ideas, new skills & knowledge, which in current competitive environment no organization can afford to shut themselves from.

Shantanuji

Chrm Message From: hrtech Total Posts: 27 Join Date: 14/04/2007  
Rank: Executive Post Date: 16/05/2007 09:30:01 Points: 135 Location: United States

Hi Srini,

You made very strong points... though, one side of the coin only ! Consider this ante-thesis.

Every thing in HR can be outsourced... It can be recruiting, placement, appraisal ( I have few projects and my customers are more than happy), training (you know that is my bread), legal (probably 95% outsourced here), personnel, record keeping (I deputed a person for three months to organise the clients records - after a 5S workshop there) and the list is unlimited. Yeh! Now we have factory within factory...

In fact Many organisations find it economic, effective and hassle free!

I know organisations that are doing well with out such an HRD department. One company employing more than 1000 . Their salary payment is organised by accounts.Everything else is outsourced... for years now. Legal, Personnel, Record Management, Training (I am a faculty), Recruiment (I am in their panel) . Even ISO 9000 audit is outsourced...

In fact the problem you cited can be due to wrong selection of outsourcing PARTNERS.. Competence, capacity to deliver, etc. should be the first criterion for selection than other considerations like price, personal contacts, etc.

We have several projects in HRD areas - and going well - and my customer had never an opportunity to express their dissatisfaction.

A competent Trainer will cost something Rs. 40,000 a month. How many programmes need to be conducted? If those programmes are outsourced to a regular trainer(PARTNER) how much it will cost? The trainer will be free to take other assignments. I think any professional worth that name can be trusted for his integrity... more than your regulars. When yours is a large organisation and need more programmes, a regular trainer may be a better decision.

Organisations need to look for competitive advantages - Where would they benefit - by engaging a person / team on a full time basis, on permanent roll, or by asking someone competent to complete given assignments... that is what the title talk about. It is a matter of cost benefit analysis, that has to do with business strategies...

The assignments should be mutually beneficial, not exploitative... As as employee would like to remian on job - secured - the outsource partner would also want to continue...

Bye!

hrtech


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