Human Resource Outsourcing (HRO): Implications and Prospects in India

Abstract

Human Resource Outsourcing (HRO) is the fastest growing segment of the BPO industry. Rapidly changing market dynamics and global competition have caused organizations to spend more time focusing on their core business. HRO is the outsourcing of tangential but essential administrative tasks such as payroll, benefits, education, training, recruiting personnel, administration, to realize economies of scale and achieve standardization of services. The HRO business opportunity is huge and India is likely to gain a significant share. India, with its intrinsic advantages such as low cost, equipped puddle of English speaking manpower and geographic positioning, is emerging as a feasible destination for HRO companies to set up their businesses. However, there are a lot of key issues of concern regarding HRO such as quality; security; confidentiality etc. that needs to be addressed in order to exploit the available opportunity. Against this backdrop, the present paper is an endeavour to explore the various key issues concerning HRO in the light of prospects in the Indian context.