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Inhouse versus Outsourced HR Services

Last post December 3, 2008 10:25 AM by jayde_renee. 1 repiles.

December 3, 2008 10:22 AM 1
Total Posts: 26
Join Date: September 16, 2007
Rank: Executive
Post Date: December 3, 2008
Posts: 26
Location: United States

Inhouse versus Outsourced HR Services

Dear Colleagues,

Most organizations do not have Integrated HR Software systems. Partly this is because good HR software is expensive and CEOs have other priorities when it comes to deploying capital.

HR Software is not seen as critical to HR processes and therefore most companies make do with Excel sheets and even paper for HR work. The sufferer is the ordinary employee who has to make do with lack of basic services that a good HR system would provide.

To overcome these hurdles, some service providers have started offering Internet based HR software which the user company can pay for based on functionality and number of employees. The software is set up very quickly and ready for use by the employees in a few weeks at the data center of the hosting company and the employees can start applying for leaves, marking attendance, reimbursing expenses, planning travel iteneraries, filing claims, declaring investments, getting salary slips all over the net.

All this happens with the company spending relatively small monthly amounts which can be expensed off.

This is becoming possible as internet bandwidth has become inexpensive and low intensity transactions like employee services seem ideal for this kind of topology.

Payroll outsourcing has been around for quite some time, but it is not integrated with HR. With HR also going the outsourcing route, companies will be able to focus on their real business and Employees would also get smooth basic services that they have always deserved but never enjoyed so far.

What do you think of this concept and would you agree that employee services would evolve in this technology and communication enabled direction.

Cheers,

Jayde

December 3, 2008 10:242
subramani
Total Posts: 30
Join Date: September 16, 2007
Rank: Executive
Post Date: December 3, 2008
Points: 150
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Re: Inhouse versus Outsourced HR Services

Jayde,

All very good! But isnt there a human and humane angle to HR? I dont see that in your write up. Maybe in future employees would approach machines to address their grievances. A massage machine or a "jaddu ki jhappi" machine would help. What say? I am not trying to be sarcastic but it appears that most people think that HR is common sense. Then where do psychometric tests, IQ, EO etc fit in? Common sense is very different from IQ. So can we really outsource all functions of HR?

December 3, 2008 10:253
jayde_renee
Total Posts: 26
Join Date: September 16, 2007
Rank: Executive
Post Date: December 3, 2008
Points: 130
Location: United States

Re: Inhouse versus Outsourced HR Services

Thanks for your response!

Of course there will always be the "Humane angle" to take care of for HR folks. At present they are often so overwhelmed with routine that they are not able to provide even routine services to employees. A famished population first needs to have basic nutrients before they can think of multi course cuisine.

Why not quickly solve the major part of the problem through enabling technologies and out sourcing. This will free the HR folks to hug and kiss or the magical Jhappis if you will.

Regarding IQ, EQ, Psychometrics and other assessment areas, even now most HR departments do not have sufficient expertise to profile people accurately for purposes of selection or potential evaluation. Large corporates are practical enough to outsource these assignments to boutique HR consultancies for fancy fees. Companies like Meritrac have made successful business out of assessment and certification for qualifying appllicants before personal intervies can be organized.

Cheers,

Jayde