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Topic : Human Resource in Manufacturing
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Is It Time to Outsource Human Resources?

Created by : Amit Madhav, Senior Consultant, GKC  | 01 17 2011 07:40:51 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Performance(Corporate Finance)
Keywords : human resource outsourcing outsource hr is it time to outsource human resources startup to outsource hr
Activity:  540 views;  last activity : 05 09 2013 08:06:15 +0000

Today professional employer organizations help free up business owners time to focus on generating revenue.

Most small-business owners know the frustration of spending more time than they want or should on non-revenue-generating activities. From payroll and human resource management to benefits and compensation, entrepreneurs can spend up to 40 percent of their precious day engaged in these necessary but time-sucking tasks.

So is it a right to outsource Human Resource??? 

  
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Top Argument
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Yes it is a good solution. It helps company to save their time and increase their revenue by doing some useful activity. But many factors are to be considered before outsourcing. Like how big it the company and what would be the cost involved in it & do we really need it at this time.
By Amit Madhav, Senior Consultant, GKC  01 17 2011 07:40:51 +0000
 
Top Argument
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Your point of views is correct Mr.Kasturirangan. It would be better to utilize the existing/available human capital towards achievement of the growth. Outsourcing takes place with a view to minimize the company expenditure that may not be a wrong idea but if they consider the opportunities to the existing man power who can be trained it would help to reduce the unemployment problems in India.
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  01 17 2011 16:40:41 +0000
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A Company should only concentrate on its core cpmpetencies and out source the rest. This does not mean a total abdication of responsibility and/or actions. It means having a small core team to dictate policy, compliance and enforcement and have the other day-day work outsourced. Outsourcing HR is a better example than outsourcing let us say design as design is "closer" to the core functions of the company
By V. Srinivas, Freelancer, Information Technology  | 01 18 2011 05:25:59 +0000
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It is already being done. Take the example of the banks outsourcing of reloading of their ATMs by cash, collection of their cheques etc
By kanukurthy sudershanrao, Operations Manager, Andhra Bank  | 01 17 2011 14:23:58 +0000
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i fully agree with you Amit.
By Anil kumar, MBA/PGDM student, fabs hyderabad (A.P)  | 01 17 2011 08:04:28 +0000
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Outsourcing for this could be a good idea for some companies, depending on their situation.

But really, human resources is an internal thing.That should be kept in-house, inside the company. You can outsource for consulting, coaching and mentoring in this area.

It's alright to get a little help in this area but even with help, it should be mainly kept inside the company.

~Management Consulting,Coaching & Mentoring Services For Business Owners & Professionals:

www.CEOBusinessManagementSolutions.com
By Business Management Consultant, : I can provide you with Management Consulting & Counseling Services  | 05 09 2013 08:09:43 +0000
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Sometimes the outsourcing leads to exploitation of employees. The agency is getting the fatty lump sum of amount per head from the companies and making very less amount as consolidated salaries to the contract employees.
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 01 27 2011 16:38:34 +0000
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First of all let us understand the fact that HR function or department is a very sensitive and dynamic one. Sensitive becuase it involves human emotion and dynamic because strategies need to change on a regular basis when it comes to employee retention. Now how will an outsoruced company be able to cter to these two requirements. For them it would be business as usual. They would only be bothered about their profit margin and not that of the clients. Even for small entreprenuers investing their time on HR would go a long way to build an empire. It would only complement their efforts at growing their organisation rather than work negatively. And once you are an entreprenuer where you have invested your own time, resource and energy, you got to multitask. Once the organisation grows big and has enough capital added in its kitty, it would be time to handover reins in important departments like HR and marketing to professionals. But not before that.
By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 01 26 2011 17:00:29 +0000
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Thanks Natteraja for referral. I agree with your point of view.
By Rathin Deb, Advisor and retail consultant, currently as Branch Manager, Tower Infotech Ltd  | 01 24 2011 09:47:07 +0000
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Outsourcing can be done for a short term and can not be a permanent solution to the needs of any organisation.
By s.baalu , Consultant, XYZ LTD  | 01 19 2011 12:57:27 +0000
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Human Resource is the most important resource of the company.The very success or failure of the companies strategies depends on the right personal.
By Ankit , Project Executive, Offshore Ally  | 01 18 2011 19:37:30 +0000
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I think outsourcing is required based on the law of land,resources and people.In India where we have plenty of technically qualified engineers and graduates &postgraduates,so outsourcing is not the solution rather we required trained skilled manpower resources suiting to insustrial needs.When there was a proposal for reservation of quotas in private also.chairman of Airtel, told the govt to give 1 years time and ready to induct only trained skilled manpower on all departments.That should be the vision of all Industrial captains.As such we have to follow Mahatma Gandhi's Ideals of providing employmen where our human capital is available in our country.
By kasturirangan.r , INSURANCE ADVISOR, Life Insurance Corporation Of India  | 01 17 2011 09:00:12 +0000
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