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Saturday 17 September 2011

Outsourcing and Types of HR outsourcing Providers


Outsourcing
Outsourcing means giving some specified service to an outside party under a contract with overall control remaining with the company. When an organisation does not want to utilise its internal resources for performing certain functions or activities it opts to entrust such activities to an outside agency or organisation, which has got the necessary competencies for such functions, to attend to them.
Types of HR Outsourcing Providers
Human Resources Outsourcing services can be classified into four categories . They are
v     Professional Employer Organisations(PEO).
v     Business Process Outsourcing (BPO).
v     Application Service Providers (ASPs).
v     eServices.
1. Professional Employer Organisations
The major HR functions can be listed as below.
Ø      Recruitment of personnel.
Ø      Training, both induction and on the job.
Ø      Monitoring of health and Safety measures.
Ø      Management of payroll services.
Ø      Specialist legal services.
Ø      Services relating to employee welfare, fitness and counselling.
The Professional Employer organisations take over complete responsibility for the entire gamut of tasks relating to Human resources Management starting with recruitment, the training of the personnel, their delayering and even performance appraisals are attended to by the PEO.

2. Business Process Outsourcing (BPO)
Business Process Outsourcing represents outsourcing of various management and operational functions. Applied to HRM, a BPO provides the company with management information system to support the company’s HR functions. Usually the arrangement provides for self access to the company.

3. Application Service Providers (ACPs) or e-Services
Application Service Providers present the required software on the web and lease it out to the companies in need. The software consists of both off-the-shelf applications and customised HR software developed by the provider. The software caters to limited functions like payroll management.

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