The HR Outsourcing needs a real process oriented guy. The HR Outsourcing is not like Financial Accounting outsourcing to India. The HR Processes are not standardized in organization, as there is no legal obligation for the same processes and same results. But, try to say to your Accountant to make the books look nicer.
The HR Outsourcing is not the activity done for the profit. When the company wants to save costs, the outsourcing in the HRM Function is not the way to achieve any savings. The offer from the external outsourcing company can look attractive in the beginning, but the real operational costs are different.
The HR Outsourcing can bring better performance numbers to the HRM Function as the number of FTE has to decrease as the result of the outsourcing activity. It is the main result as the HR Outsourcing helps to increase the profit per FTE in the HRM Area.
The HR Outsourcing is really dangerous for partners, the outsourcing company and the vendor of outsourced services. The processes in each organization are different and the HR Outsourcing Project has to be quite huge activity before the real process can be outsourced to the external services vendor.
The HR Outsourcing is a real challenge and the HR Management Team has to be sure about its benefits for the organization. The HR Outsourcing is not about losing the contact with the employees conducting the outsourced services, it also decrease the flexibility of the organization in the area.
The company has to make a proper cost-benefit analysis to be sure about the benefits provided by HR Outsourcing and it has to be ready to pay the cost of the outsourced services.
