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Research Proposal Sample Work
Research Proposal Sample Work
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Contents
1. INTRODUCTION ............................................................................................ 5
1.1 Aims and Objectives .................................................................................... 8
2. LITERATURE REVIEW ................................................................................. 9
2.1. Human Resource Management Challenges ................................................ 9
2.2 Rational for Outsourcing Human Resources ............................................. 11
2.3 Effect of Organizational Characteristics and Environment ....................... 14
2.4 Elements of human resource Outsourcing ................................................. 15
2.4 Benefits Derived from HR Outsourcing .................................................... 17
2.5 Risks in Human Resource Outsourcing (HRO) ......................................... 19
2.6 Perspectives for HR Outsourcing .............................................................. 22
3. Research Methodology .................................................................................. 27
3.1. Introduction ............................................................................................... 27
3.2. Research design ........................................................................................ 28
3.3. Research Philosophy ................................................................................. 28
3.4. Research Approach ................................................................................... 30
3.4.1. Deductive approach ............................................................................ 30
3.4.2. Inductive research approach ............................................................... 30
3.5. Research strategy ...................................................................................... 31
3.6. Time Horizon ............................................................................................ 32
3.7. Sample Location and Target population ................................................... 32
3.8. Sampling ................................................................................................... 32
3.9. Sample size ............................................................................................... 33
3.10. Data Collection ....................................................................................... 34
3.11. Validity and Reliability........................................................................... 39
3.12. Ethical approaches .................................................................................. 40
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3.13. Informed consent .................................................................................... 41
3.14. Interview textual analysis ....................................................................... 41
3.15. Summary ................................................................................................. 42
4. Results and Analysis ....................................................................................... 42
4.0. Introduction ............................................................................................... 42
4.1. Participants Profile .................................................................................... 43
4.2. Implementation of HR Policies and Practices .......................................... 44
4.3. Motives of Outsourcing Decisions: .......................................................... 46
4.4. Strategic viewpoint of Outsourcing .......................................................... 48
4.5. Driving factors of HR Outsourcing .......................................................... 49
4.6. Benefits of HR outsourcing functions ...................................................... 50
4.7. Challenges and issues in outsourcing ....................................................... 51
4.8. Outsourcing and its impact on HR team ................................................... 52
4.9 India as your HR outsourcing destination ................................................. 55
4.10 Outsourcing Vendors interview transcript:.............................................. 57
4.11 Summary: ................................................................................................. 68
5. Discussion & Conclusion ................................................................................ 69
5.0 Core motives and benefits of HR outsourcing........................................... 70
5.0.1 Low cost operation .............................................................................. 70
5.0. 2 Competitive advantage ....................................................................... 70
5.0.3 Increased flexibility ............................................................................. 71
5.0.4 Increased quality .................................................................................. 71
5.1 Challenges and issues involved in HR outsourcing .................................. 72
5.1.1 Vendor selection .................................................................................. 72
5.1.2 Selecting outsourcing functions........................................................... 73
5.1.3. Inconsistent quality and performance ................................................. 73
5.1.4 Privacy and confidentiality of organizational data .............................. 73
5.2 Challenges and issues faced by vendors .................................................... 74
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5.2.1 Delayed response time and miscommunication .................................. 74
5.2.2 Stringent work practices and assessment procedures .......................... 74
5.3 Effective outsourcing practices.................................................................. 75
5.3.1. Effective practices of outsourcing organizations ............................... 75
5.3.2. Effective practices of vendors ............................................................ 75
6.Conclusion ....................................................................................................... 76
6.1. Limitations and future studies .................................................................. 78
6.2 Recommendations ...................................................................................... 79
6.3. Making an outsourcing decision ............................................................ 79
6.4 Managing relationships and contract ...................................................... 79
6.5. Major risk in HR outsourcing ................................................................ 80
6.6 Establishing a governance structure ....................................................... 80
6.7. Selecting a service provider ................................................................... 81
6.8 Strategies to avoid the risks in HRO ...................................................... 82
6.9 Future Research Opportunities ............................................................... 82
References: ....................................................................................................... 83
Appendix ............................................................................................................. 96
INTERVIEW QUESTIONNAIRE FOR OUTSOURCING ORGANIZATION
............................................................................................................................. 96
INTERVIEW QUESTIONNAIRE FOR OUTSOURCING VENDORS ..... 127
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Chapter 1. INTRODUCTION
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Outsourcing can be defined as the mechanism with the help of which
technological services are bought from external specialists on the basis of a
contract in order to substitute internal resources (Gelbstein, 2003). In other
words, Belcourt (2006) mentions that when an organization contracts with
another organization or third-party provider in order to offer services or
products of a major function or activity in the case of HR, its various elements
of HR functions, it can be termed as outsourcing (Turnbull, 2002; Cooke et al,
2005).
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day administrative responsibilities to concentrate on core business activities and
shifting the former responsibilities to third party vendors (Esen, 2004).
HRO is always a best and considerable option, especially for organizations that
does not want to be worried by unimportant, non- core activities such as payroll,
benefits, staffing, and training or performance assessments (Roehling et al.,
2005), as it can reduce expenditure, raise economics of scale as well as
competence from the most up-to-date technology (Adler, 2003; CIPD, 2009).
Apart from these, organizations also get a chance to utilize time on focusing
their interests on strategic performance that helps in the companys success and
competitive benefits (Esen, 2004; CIPD, 2009). By indulging in human resource
outsourcing the organizations not only are advantageous because of a firms
business approach, but they can also ensure the flexible accessibility of
specialized services where they required at a reasonable price. Nevertheless,
HRO requires attentive groundwork and monitoring to be fully advantageous
(Esen, 2004; CIPD, 2009; Padhy, 2013). In other words, human resource
outsourcing is the transfer of the management or administration of a process or
function from in house staff to an outside service provider (Sally, 2005)
The aim of the research is to achieve to investigate the advantages and risks that
are associated in human resource outsourcing and different techniques that are
used to manage the risks.
The aim of the research is attained with the help of the following objectives:
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Chapter 2. LITERATURE REVIEW
2.1. Human Resource Management Challenges
The past decade has experienced major shifts from personnel management to
strategic human resource management (Price, 2007). Concepts of integrating
industrial relations (Guest, 1991), aligning business strategies and de-layering
HRM responsibilities to line managers (Brewster et al, 1997) have led managing
of human resources to be used as a competitive advantage (Budhwar and
Sparrow, 1997). In contrast to the traditional grasp of the administrative role of
human resource management, HRM has been reinterpreted more as an internal
consultant that plays an advisory role in managing people to achieve
organizational competitiveness and advocate organizational change (Kenton and
Moody, 2003; Wright, 2008).
In contrast, Boninelli and Meyer (2004) used the following table to illustrate the
present and the future role of human resources.
Table 2.1: The Current and Future Role of HUMAN RESOURCE (Source: Bonninelli &
Meyer, 2004)
CURRENT FUTURE
Performance enhancement Performance enhancement
25% 40%
Strategy The Strategy required
5% 30%
Transactions Transactions
30% 15%
Administration costs Administration costs
40% 15%
Armstrong (2011) strongly argues that human resource should free themselves
from administrative and transactional activities and needs to focus on improving
their capacity to deliver value-added services. Similarly, Ulrich (1998) mentions
that human resources hold keys to success for organizations in overcoming
major challenges such as globalization in coming years. Globalization entails
new markets, new products, new mind-sets, new competencies and new ways of
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thinking about business and therefore in future there is a dire necessity for
human resource to create models and processes for attaining global agility,
effectiveness and competitiveness (John, 2013; Tshirado, 2013).
Almost all the researchers and HR professionals are calling for human resource
to perform an active and strategic role in order to help organizations to achieve
its competitive position (Greer et al., 1997; Ulrich, 1997; Klass et al., 1999;
Klass et al., 2001, Sally, 2001, Weidenbaum, 2005; Belcourt, 2006; Wright,
2008; John, 2013). However the higher level management in organizations must
make sure that the transactional functions should be delivered in a cost effective
and efficient manner but at the same time in the order to achieve this,
transferring the complete responsibility to the line managers might not be a
good idea or a right alternative as the line managers should also have to
concentrate on the core business just like the human resource (Klass et al.,
1999). This intern gives rise to a question whether Human Resource outsourcing
(HRO) really helps the human resource in transforming to a strategic partner in
a cost effective and efficient manner and organizations to achieve the results
they have expected.
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organizations are outsourcing certain functions to third-party companies for
various reasons at both strategic and operational levels (Klass, 2003; Cooke et
al., 2005; CIPD, 2009). According to the CIPD survey (1998) the majority
respondents report that the main drivers for outsourcing human resource are: 1)
access to skills and knowledge; 2) quality, 3) cost reduction and 4) governance
structure (Cooke et al., 2005; Hindle, 2005, Sparrow and Braun, 2007). In other
words, according to resource-based approach, human resource outsourcing can
be an instrument that creates time for human resource to become a strategic
partner and therefore is viewed as an opportunity. While a second view
considers human resource outsourcing a Human Resourceeat which initiates
from a cost-cutting instrument gradually reducing human resource staff
(Delmotte and Sels, 2008).
Among these factors, cost reduction ranked in the first place and a major reason
(61%) and innovation in the third place (CIPD, 1998). According to
International Data Corporation report the primary reason for BPO companies
to outsource is to minimize costs which have become the main motto in their
contract agreements (Alders, 2001; Belcourt, 2006; Yang et al.,2007). Belcourt
(2006) in his report about BP (British Petroleum) outsourcing clearly mentions
that the first reason for BP to outsource its human resource is to reduce costs
while the second is to provide quality support for its employees and the third is
to focus on its core strategies and off-load the time consuming administrative
work. BP by outsourcing its human resource functions and relocating its 56,000
US and UK employees achieved a result of 40% reduction in human resource
staff, $15 million of its operating costs and $30 million of funding in capital
costs for technology. Furthermore, Cohan and Young (2006) also state that by
outsourcing human resource, organizations are able to control costs due to cost
savings and efficiencies associated with BPOs.
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In contrast, Thompkins (2005) disagree that the primary reason to outsource is
cost control and strongly argues that the goal for outsourcing is to make sure
that the higher level management can focus on value-added services and core
business processes. In the same way 45% of the sample people in the CIPD
survey (1998) considered the relief of human resource staff pressure as a key
HRO driver and 48% of those who engaged in HRO consider access to new
technology as an important driver. According to Metty (2006) the most
important benefit an organization can gain out of human resource outsourcing is
to have access to the early adoption of new technology.
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Fig 2.1 CIPD 2010 report used the following table to represent outsourcing drivers and
their achievements (%)
Achieving greatly Achieving partially Not Achieving
Improvedquality 21 59 17
Reduced cost 42 46 10
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Shared goals understanding the business we are in.
Any organization before outsourcing any of their functions can use the five
paths as it is extremely crucial to understand the organizations current position,
future goals, future requirements and organization strengths (Sally, 2001).
Apart from the core competency matrix, another alternative is the process
driven approach, where each process is allocated into two values (Kruse and
Berry, 2004). The first value relates to the overall cost of the process and the
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second value describes the significance of the process by relating to customer
satisfaction. A ratio is calculated out of it by dividing the cost value by the
significance value with the process with the highest ratio value being considered
for outsourcing (Sally, 2001; Kruse and Berry, 2004). Organizations also must
consider that outsourcing is only beneficial if they outsource the right processes
to the right level or else the idea of outsourcing could lead to greater risks such
as over budgets or sometimes entire business failure (Greer et al., 1999; Sally,
2001; Beatty et al., 2003).
The main benefits that companies are expecting from outsourcing HR are cost
saving, quality improvement and accessing to skills and knowledge and among
these three benefits cost saving comes first and foremost (CIPD, 2009; Esen,
2004). Studies conducted over two years on outsourcing arrangements show
that HR outsourcing resulted in cost saving ranging from 10 20% with an
average of 15 % (Adler, 2003; Henneman, 2005; Oshima et al., 2005).
According to Belcourt (2006) organizations can reduce costs, mainly by
outsourcing HR functions such as payroll, benefits, compensations,
administration and employee assistance program. Human resource management
department (2004) quoted that out of 41% of HR professionals indicated that
cost factor is the main motivation behind HR outsourcing to achieve cost
savings (Esen, 2004).
Patel and Aran (2005) suggest that flexibility is another benefit why
organizations are expecting to outsource, but Kruse and Berry (2004)
contradicted that flexibility is not necessarily a benefit of BPO, as several
organizations were constrained by complications from getting out of BPO
agreements.
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In addition, Belcourt (2006) points out that apart from cost and flexibility,
strategic focus and skills improvement are additional benefits that organizations
enjoy out of outsourcing HR. When organizations outsource non-core activities,
managers hope to focus on value-added roles (Belcourt, 2006). Burn (1998) also
quotes that CIBC (Canadian Imperial Bank of Commerce) members gained
competitive advantage by focusing on planning, need analysis, and coaching
after program completion by outsourcing HR functions.
Fig 2.2 HRM survey report used the following chart to represent the
benefits of outsourcing HR functions (Source: Esen, 2004)
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2.5 Risks in Human Resource Outsourcing (HRO)
Albertson (2000) empirical study indicates that about half of the respondents
found that it is more expensive to manage the outsourced activities than
originally expected and the service levels were not as good as expected. This
may result from vendors curiosity to standardize the service by forgetting the
customers requirements (Adler, 2003, p 55). Vendors though understand the
function fail to take clients comforts into consideration when bringing their
services (Greer et al., 1999, p 91).
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Fortunately, these kinds of errors can often be dealt with in two ways, one of
which is by dealing with the business model that has been accepted by most
HRO vendors (Hesketh, 2006). In order to attain economics of size and range,
suppliers or vendors try to standardize and codify their services to large extent
by using human resources information systems and setting up collective service
centers that incorporates provision among different HR and client actions
(Alder, 2003; Cooke et al., 2005). Consequently, there is a crucial need for
suppliers to enlarge their size in the form of merger and acquisition (Ordanini
and Silvestri, 2008).
Another way is the reverse of the first and tends to be risky for HRO vendors in
presenting more tailored services. According to the process, HRO vendors need
to have knowledge about the production process of the clients firm and they
need to make a substantial asset specific investment to run those processes
(Klass et al., 2001). As HRO vendors have to make investments, there is risk
when customers might refuse to renew contracts or utilize the threat of non-
renewal for bargaining (Klass et al., 2001).
The vendors will provide services as specified in the contract and if required by
the client organization, adjust according to the changes made in contract which
provides flexibility of adding new features, enhancements or reduction of
services thereby reducing risk of service (Belcourt, 2006). Apart from this,
another vital risk is where HRO organizations may gain expertise in their field
and may enter the market and become competitors to the clients
organization(Belcourt, 2006; Sparrow and Braun, 2007).
One third of HR professionals oppose the idea of outsourcing because they risk
losing their jobs or have to work for other vendors (Greer et al., 1999; Badcock,
2004; Belcourt, 2006). Outsourcing can even lead to disintegration of
organizational culture where instead of empowering and valuing employees, the
idea of outsourcing alienates and de-skills them (Adler, 2003; Belcourt, 2006;
Kremic et al., 2006). Once when outsourcing arrangements are stated, the HR
managers expect the senior and talented employees to leave the organization,
leading employees to suffer anxiety resulting in the ultimate loss of production
(Belcourt, 2006).
HRO may not always result in extremely stranded or substandard services either
(Klass et al., 2001). Less regular HR functions may even give chance for HRO
to create more inconvenience to clients as service turns out to be more and more
twisted and codified for the capability and business strategies of provider (Klass
et al., 2001). Human resource outsourcing can also lead to product type service
with low touch as the decisions of placements are centralized in the BPO
industry and are mostly carried out by fulfilling instructions with the use of
software (Kosnik et al., 2006).
Long term outsourcing can even lead to the loss of clients capability to manage
HR effectively. Human resource outsourcing report show that 25% of its
respondents reported that customer service decreased, leading to a minimization
of personal relationship (Esen, 2004; Lily et al., 2005). Further arguments in
literature on HRO raise questions about the positive assessments made on
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vendor managed human resource outsourcing, but at the same time also
highlight that outsourcing helps in changing the administrative actives of labor
deputation and reducing costs of production (Klass et al., 1999; Esen, 2004;
Belcourt, 2006; Kremic et al., 2006; CIPD, 2009).
In order to grasp the many views of the extent of the impact of HR outsourcing;
the following table shows a dissection of the methods and findings for a
comparative analysis of the existing literature.
Table 2.3 dissection of the methods and findings for a comparative analysis of the existing
literature
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Greer et al., Qualitative HR outsourcing used This is a quantitative
1999 research for both operational and research based on
interviews strategic reasons. interviews therefore it
Senior HR Guidelines for does have statistical
executives and selecting vendors, data to validate its
professionals managing outsourcing findings as usually is
25 transition, managing the case with
organizations. vendor relations, and qualitative research.
monitoring vendor
performance are
provided.
Esen, 2004 Quantitative HR outsourcing, views The study is limited
based on empirical study of HR professionals to US based
U.S. U.S. based towards the concept, organizations
298 HR Professional impact belonging to strategic
Professionals. with high emphasis on human resource
partial outsourcing HR. management which
Organizational means these
rationale for HRO, types organizations are
of HR functions prone to make
outsourced, and strategic decisions
decisions for not rather than traditional
outsourcing. cost economic based
ones.
Belcourt, Case-based Rationale for Based on a single
2006 qualitative Study outsourcing HR case.
(financial savings,
increased ability to
focus on strategic
issues, access to
technology and
specialized expertise,
and ability to demand
measurable and
improved service levels)
Risks of decreasing
employee morale and
transfer of expertise and
insider knowledge to
vendors.
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CIPD, 2009 Empirical study Half the respondents The report is limited
315 HR agreeing that HRO has to the nature and
practitioners allowed them to play a extent of HR
29% (91 more a strategic role to outsourcing in
organizations) a limited extent, organizations within
are outsourcing 36% failed to see UK.
aspects of HR HRO as a strategic
activity. enabler for HR
function
Findings from the literature review will allow scope for analysis of the case-
based qualitative study for this research. The both the professional and
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academic review of literature forms a groundwork on which the cases based in a
developed and developing country will present in order to provide a
comparative analytical review of human resource outsourcing, implications and
its future scope in the context to its environment.
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Chapter 3. Research Methodology
3.1. Introduction
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3.2. Research design
The design for this research has been done purely for research purpose. This
study adopted the Onion model of Saunders et al. (2003). The "Onion" research
model consists of five different layers which are depicted in the figure 1 below:
Research Philosophy
Interpretivism
Qualitative Strategy
Research Strategy
For utilizing primary data, the phrase Research philosophy is used to suggest
the method adopted to cull and scrutinize various data. There are three essential
research philosophies governing this research:
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manipulates reality by modifying an independent variable in order to evaluate
the association between such variables of the real world.
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Since this study main is intended to understand the HR outsourcing issues in
India and offers solutions for the issues faced by them, interpretivism is
considered in this research philosophy. Interpretivism looked at the
phenomenon from why and how in this case, challenges of HR outsourcing
was explored from these phenomenon to make sense of or interpret phenomena
in terms of the meanings people bring to them (Denzim and Lincoln, 1998).
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As a result, deductive approach is termed as a top down approach, whereas
Inductive approach is known as bottom up analysis. As far as this study is
concerned, inductive approach is adopted as it expands theories not only limited
to the improvement of HR outsourcing performance, but also provides solutions
to the current issues faced by them. In addition, due to the fact that there is not
much previous study relating Indian HR outsourcing, the present study used the
theories and empirical studies conducted in Western scenario and looked at the
problem from Indian scenario. Since challenges in Indian HR outsourcing are
different from the Western context, present study adopted an inductive approach
and investigated the challenges faced by both vendors and HR outsourcing
organizations.
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phenomenon under study is complex and social in nature and does not lead to
quantification (Liebschar, 1998) and it analyses the perceptions of both vendors
(India) and HR outsourcing organizations (UK). Since there are only limited
numbers of organizations who are actively involved in HR outsourcing,
qualitative would be an ideal choice as it enable understand the research
phenomenon in-depth by collecting a large amount of information and in many
cases a surplus of information. Moreover, the purpose of qualitative research is
not quantity of data collection rather making valuable data that answers research
question.
The study was conducted in both India and UK. The outsourcing vendors
from India were selected as target population. The sample includes both
administrators and employees of Indian outsourcing firms. Using the contacts
obtained from Indian respondents, UK outsourcers were selected as target
population. As the study intended to identify the challenges confronted by the
outsourcing industries, it does not consider the effect of regional distribution or
size of enterprises, although this may an effect.
3.8. Sampling
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3.10. Data Collection
Usually, two types of data collection methods are employed such as (1)
Primary data Collection; and (2) Secondary data Collection.
A2 What are the core motives that have To identify the outsourcers view of the
influenced outsourcing decisions? motivators of HRO in organizations and
their reasons behind outsourcing HRO
services
A3 From a strategic viewpoint, how do you To highlight the concept of outsourcing
view Outsourcing as an initiative? and to identify the companies strategic
view in choosing HR outsourcing.
A4 Which HR functions did you perceive To identify the drivers in HRO decision
required Outsourcing and what influenced making and the motivators of weighing
your decision? the outsourcing options.
A5 Would you describe your HR outsourcing To identify and highlight the Benefits
that the outsourcing companies are
function as successful? If yes, in what ways
expecting out of HRO and to know what
has it benefited the organization? extent they were successful in achieving
them.
A6 What challenges did you face in order to To identify the challenges that
outsource your HR functions? outsourcing organizations face when
outsourcing their Human resources.
A7 How did HR outsourcing affect your HR To identify the benefits (internal)
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team in terms of function? enjoyed by the HR team after HRO
A8 Has your organization faced any issues To identify the Risks that outsourcing
related to HR outsourcing? If yes, describe organizations face after they outsource
the instances? their work to the vendor companies.
A9 What were the risks that you had to work To identify the risk management
strategies that are used by the HR
with during HR outsourcing services in
outsourcing companies to minimize
your organization? risks.
A10 Why do you choose India as your HR To identify the aspects that outsourcing
companies consider when they choose
outsourcing destination?
to outsource their work to vendor
companies in specific countries.
B HR VENDOR ORGANIZATIONS
B1 Has your business of providing HR services To identify their justification on why
to organizations been successful? Why do they provide better HR services. To
companies prefer to outsource HR highlight the reasons behind HRO from
activities? the service providers viewpoint
B2 What kind of apprehensions do companies To identify the type of risk
have in outsourcing their HR functions and management strategies that vendor
how do you deal with them? companies follow in order to maintain
trust with the outsourcing comapany
B3 As HR specialist, what are the core To identify the type of HR functions
functions of HR you think that influence they expect either to be outsourced or
organizational strategies? lacking to be outsourced
B4 Which HR functions in the industry are To identify the HRO services that are
outsourced mostly? most popular in India
B5 Have you faced any issues with To identify the general issues and risks
organizations you provide HR services for? faced by the vendor organization while
If yes, what kind of issues have you faced? providing HR services to the
outsourcers.
B6 What initiative do you think helped to build To identify the initiatives taken by HRO
the trust relationship with your clients? vendors to help build trust and
confidence in providing HRO services to
organizations (legal etc). Also identify
the challenges and risks involved in
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HRO
B7 What challenges do you have to face when To identify and highlight the common
you provide HR services for developed challenges that Vendor companies face
countries? from their HR department when
providing HR services to developed
countries.
B8 What are risks in accepting HRO from To identify the risks that have to be
developed countries? taken by the vendor companies in order
to provide HR outsourcing to
Devoloped countries.
Figure 3.2: Schematic representation of the data collection process employed in this study
Data collection
Semi-structured interview
Source: Author (2013)
Ethics are important as it ensures how the study needs to be conducted rather
than the way things are (Burton, 2000). The researcher has considered all
possible ethical issues at every stage of the studies (Burton, 2000). For example,
the researcher obtained informed consent from all participants prior to the
conduct of the study. Moreover, the researcher assured the participants
confidentiality by employing a coding system to hide the identity of the
respondents. Further, any personal information such as email id, mobile
number, address, etc were not collected by researcher. Moreover, the researcher
assured the participants that they have all rights to withdraw from the interview
at any time.
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3.13. Informed consent
Consent from the participants is vital to the study and the researcher has
explained the participants the main objectives and motivation to make sure the
reliability of the research. Therefore, consent process was done in this study.
All interviews were recorded and transcribed for further analysis and
process commenced during the interview phase and continues throughout the
transcription. Data was analyzed by content analysis (thematic analysis). Notes
took during the interview process were transcribed and coded based on the
themes of literature review. Firstly, analysis began with a quantification of
categorization to achieve basic understanding of the data and followed by
thematization to inspect the research question. Special focus was given to
themes that provided rich insights. Since the results were analysis in English,
translation was not required. Sample Analysis was shown below.
Sample Analysis
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.We follow methodological procedures (INT_01_A) practiced effectively
.(INT_02_A).. established clear HR policies. provided with a handbook of
HR policies (INT_03_A).. an online tool post their grievances (INT_04_A)
follows well framed HR policies (INT_05_A) polices updated periodically
and intimated to our employees (INT_06_A) representative of the employees
to obtain their viewpoint (INT_07_A) are indispensable for any organization
(INT_08_A) well-developed HR policies conduct meeting to get
suggestions (INT_10_A)
3.15. Summary
The present study adopted qualitative, interpretive and inductive approach. Data
collection was done among both outsourcing vendors and customers from both
UK and India. Semi-structured interview guide was developed and interview
obtained was transcribed. Thematic analysis was used to analyze textual data.
The study had inherent limitations such as cross sectional study design,
qualitative approach, sampled only a few managers, but despite that focus is to
obtain rich information in order to answer the research question posed.
However, researchers attempted to reduce these errors as much as possible.
4.0. Introduction
This chapter explains the outsourcing organizations and vendors
experiences of Human resource outsourcing, particularly to identify the
motives, benefits and challenges involved in the process from outsourcers and
vendors perspective. The researcher includes narrative descriptions to
demonstrate the individual perspectives of each participant. Further, coding
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process was used to determine each outsourcers outsourcing experience with
vendors and examine whether outsourcers have sufficient policies, resources
and knowledge to address the issues involved. Finally, researcher introduces the
thematic analysis that categorized participants unique experience into the
conceptual schemes based on the research questions set.
Data Analysis
All interviews were recorded and transcribed for further analysis and process
commenced during the interview phase and continues throughout the
transcription. Data was analyzed by content analysis (thematic analysis). Notes
took during the interview process were transcribed and coded based on the
themes from literature review. Firstly, analysis began with a quantification of
categorization to achieve basic understanding of the data and followed by
thematization to inspect the research question. Special focus was given to
themes that provided rich insights. Since the results were analysis in English,
translation was not required.
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HR country Head 1
Regional HR Manager 1
Procurement specialist 1
Associate HR Manager 1
Senior HR Manager 2
HR Manager 2
HR Regional Head 2
The majority of the participants were in the age group of 3055 years. Out of
the 10 participants, 9 participants were male and only one participant was
female. In addition, the majority of the participants are from mid-size firms with
a number of employees in the range of 5,000 and 10000. However, a few
participants are from large size firms with a number of employees in the range
of 55,00063,000. The following coding system was applied to differentiate
vendors from clients by. (INT_ 01_A), where the letter A at the end
represents the Group A that is Outsourcing Organization while (INT_01_B),
Letter B at the end indicates Group B that is Outsourcing Vendors.
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Interviewees were questioned about various HR policies and practices
implemented in their organizations. The majority of the Interviewees reported
that they give utmost importance to HR policies and in order to implement
them, systematic procedures were followed in their organizations for all HR
related practices. HR strategies were made clear in the organizations by
providing the employees with handbooks and with the help of internet portals
by which employees can post their suggestions and feedback with regard to all
work related activities.The HR policies will be reviewed periodically and
updated to all employees.
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Figure 4.1: HR Policies and Procedures
4 4
3 3
3
Respondents
2 Effective
2
Handtool
1 Online/Portal website
1 Periodic updation of the policies
Conducting meetings
0
Effective Handtool Online/Portal Periodic Conducting
website updation of meetings
the policies
HR Policies and Procedures
reduce time 2
Motives of HR outsourcing
skilled employees 2
competitive advantage 3
low cost 6
legal requirements 2
0 1 2 3 4 5 6 7
Respondents
The figure 2 reveal that 6 of them responds to low cost followed by 3 of them competitive advantage, 2
of them reduce time, 2 skilled employees, 2 legal requirements and 1 reduce work load.
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4.4. Strategic viewpoint of Outsourcing
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Fig 4.3 Strategic viewpoint of outsourcing
Added Advantage 2
Quality 2
Productivity 3
Organization flexibility 2
0 1 2 3 4 5
Respondents
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Fig 4.4 Driving factors and frequently outsourced HR functions
Superior customer service and productivity 1
Driving factors of HR outsourcing
0 1 2
Respondents
The above figure 4.4 reveals that equal 1 responded to each driving factor of HR outsourcing.
Interviewees were asked about various benefits that they gain out of HR
outsourcing. The major benefits for HR outsourcing highlighted by the
interviewees are it reduces cost, helps to minimize risk by compiling with labor
laws and employment regulations, reduces time, reduces redundancy of work
and ensure professional documentation.
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Fig 4.5 Benefits and HR outsourcing functions
3
2
Respondents
1 1 1 1
1
0
Decreased work Cuts down high Efficient Eased in house HR Updated with all
redundancy cost basis functioning functions regulations &
beneficial schemes
Benefits and HR Outsourcing functions
The figure 4.5 shows the number of interviewees mentioned the above benefits in their interviews.
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Fig 4.6 challenges and issues in HR outsourcing
4
3
3
Respondents
1 1 1 1 1
1
0
Selection of Challenges in Difficulty in Challenges Identifying the Delayed
appropriate identifying the understanding related to company's risk response time
vendor keymetrics the factors service cost factors and and poor
related to use assigning to the communication
satisfaction outsourcing for clarification
partner
Challenges and Issues in Outsourcing
The figure 4.6 reveal the number of respondents mentioning the above challenges in outsourcing.
Still few reported that they were able to focus more on strategic planning and
they did not find a lot of negative impacts on in- house HR team.
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However, there are few who report that they face issues and challenges in
outsourcing only to some extent, stating that: vendors credibility is questioned
at times requires further verification on conformation (INT_2_A)
sometimes vendors fail to offer best practices (INT_9_A)
2 2 2
2
No. of Respondents
1 1
1
0
Reworking on same task Insufficient knowledge Challenges in coveying Challenges in obtaining Reworking on same task
about skill requirements information, affecting consolidated opinion
firm's productivity
The above fig 4.7 shows the total number of respondents mentioned the above issues in their
interviews.
When Interviewees were asked about various risks of outsourcing almost all the
interviewees have stated several issues risk factors that are involved in HR
outsourcing such as loss of flexibility, losing control over HR policies of the
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organization, elaborate legal procedures, disclosure of the companys
confidential affairs and many more
0 1 2 3
Respondents
The above figure 4.8 shows the total number of respondents mentioning the following risks in their
interviews
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Interviewees were asked about reasons for choosing India as outsourcing
destination. Several interviewees have described that that the availability of
highly skilled and competent professionals, prompt and reliable execution of the
work, low operational cost, low labor charges, rendering quality-oriented work
has been the prime reasons and aspects for choosing India as the a major
outsourcing destination.
5
Respondents
3
2
2
1
1
0
Low operational cost Availibility of skilled Safe to make Can avail quality
professionals investments work
Choosing India as a majot outsourcing destination
The above figure 4.9 shows the total number of respondents responded to reasons of choosing india
as outsourcing destination.
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4.10 Outsourcing Vendors interview transcript:
Participants Profile:
Trend of HR outsourcing:
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Organizationsintend to advance and speedup the recruitment processto
reduce cost involved (INT_03_B).to negotiate with employees regarding
CTC( INT_04_B) processing healthcare facilities is difficulthence
outsourcing (INT _06_B).focus on core business activities. (INT _09_B)
to attain a competitive edge (INT_10_B).
The vendors indicated that they update their process regularly and are compliant
with the rules and regulations of Government. Moreover, they indicated that
offer customized services based on outsourcing organizations requirement and
assist them by reducing their work load and thereby enable organization to
focus on their core activities. All these clearly indicate the trend as well as
motives for outsourcing. However, one of the participants revealed the
challenges involved in the HR outsourcing process.
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meeting customer demands, maintaining response time, privacy and
confidentiality issues, quality issues and legal issues.
4
4
Respondents
2 2
2
1
1
0
Earned a competitive Speeds up recruitment Cost reducation Focus more on core
edge in the market process business aspects
Effective HR practices
The above figure 4.10 shows the number of respondents mentioning the above Effective HR
practices inn their interviews
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4.10 Issues faced by the organizations when outsourcing.
Iteration rate 1
Confidentiality Issues 3
Misommunication 2
0 1 2 3 4
Respondents
Soft skills training knowledge updated skill set for the employees (INT_1_B),
(INT_5_B), (INT_7_B) recruitment and training(INT_2_B) primary
driving factor building a strong human capital(INT_3_B) leadership
development programs (INT_4_B), (INT_6_B) Innovative workforce
management(INT_8_B) staffing, training and development, employee
engagement(INT_9_B), (INT_10_B)
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Fig 4.11 Role of HR in influencing Organizational strategies
0 1 2 3 4
Respondents
The above fig 4.11 shows the total respondents responded to above organizational stratagies
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See Appendix 2 for the table 4.13.
Background verification 2
The above figure 4.12 shows the number of respondents responded to most commonly outsourced HR
functions.
Majority of the interviewees expressed their views that there are few issues and
challenges that are faced by the outsourcing vendors which includes payment
issues, salary crediting issues, errors in performance evaluation,
miscommunication issues, and challenges faced in data protection and privacy
policies and many more
But on the contrary, some have addressed that none of their clients experience
any issues related to their outsourcing services- All services are executed in a
well-organized manner and they put in their best beyond efforts providing
complete solutions for all their management related issues.
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protection and privacy laws (INT_7_B) timeline not provided lot of
misunderstandings (INT_8_B) mutually agreement cost model (INT_9_B)
Our clients are pleased and satisfied with us for their HR functions
(INT_2_B) Well-documented legal agreements helped us to avoid these
kinds of issues (INT_10_B)
Miscommunication 2
Payment Issues
2
0
1
2
3
Respondents
The above figure 4.13 shows the number of Vendors mentioning the above Issues faced by HR vendor
companies
Most of the interviewees have addressed that providing testimonials and success
stories of their prospective clients would definitely add on to their marketing
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strategy. Other factors providing excellent customer services, meeting
deadlines, following strict recruitment policies would also play a vital role in
building an effective marketing strategy.
2
1
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The figure 15 reveal the marketing strategy adopted by outsourcing vendors 4 of them respondents
mentioned Record of testimonials & best practices of prospective clients in their interviews followed
by 3 of them responds providing customized services, 2 of them responds providing ultimate client
satisfaction, 2 of them responds maintain Holistic relationship with clients and 1 of them respond low
turnaround time.
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4.15 Challenges aced by HR outsourcing vendors from developed countries
Challenges faced by HR outsourcing vendors
from developed countries
2 Stringent in work policies and
ethics
1
Work on shift basis
1
2
The figure 16 reveal the challenges faced by HR outsourcing vendors from developed countries 4 of
them responds to Stringent in work policies and ethics followed by 3 of them responds language
barrier & miscommunication, 2 of them responds Stringent training & Interview patterns, 2 of them
responds challenges in execution of new methodologies, 1 of them respond cultural and legal
differences, 1 of them respond work in shift basis, 1 of them respond sophisticated assessment
procedures and 1 of them respond High cost range
Also, some have addressed that process of the organization the requirement is
well outlined (INT_1_B) not faced any risks(INT_3_B) made a good
relationship with the clients trust and their customer satisfaction
(INT_9_B)
4.17 Risks Faced by the HR outsourcing vendors from the Devoloped countries
Challenges in
convincing the
MNCs and earning
their trust
3
1
Providing less
Change in
freedom to
authority or 0
execute
acquisition
procedures
Customer service
quality to be
constantly
maintained
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4.11 Summary
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Chapter 5. Discussion
The central question of this study was to identify the advantages and
risks and challenges associated with HR outsourcing and to determine the
effective measures adopted by organization to mitigate them. Outsourcing is
increasingly adopted by organizations than ever before and as a result, there is a
huge demand for structured information that guide them to identify benefits,
challenges, and effective practices related to outsourcing. Even though several
studies have focused on the benefits and risks associated with outsourcing most
of them focused only on the outsourcers perspective. Moreover, there were
only limited information on the challenges faced by outsourcing vendors. In
order to fill this gap, this study attempted to investigate the risks involved in
outsourcing from both vendor and outsourcers perspective. This will enable
both outsourcing organization and vendors to have an in-depth understanding of
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outsourcing and enable them to effectively handle inherent challenges involved
in outsourcing. The findings of this study are discussed in detail as follows:
The interview findings of the present study indicated that cost reduction
was found to be the major driving factor for respondents to adopt outsourcing.
In the present study, the majority of the outsourcing organizations indicates that
outsourcing helps to reduce the average unit cost of product/service sold by an
organization. Moreover, interviewees indicate that outsourcing enables
organizations to utilize the skilled expertise at lesser costs. In addition, through
outsourcing organizations are able to control infrastructure and support systems
cost. All these findings clearly indicate that organizations adopt outsourcing
mainly to reduce cost. Similarly, previous studies on outsourcing (Csoko, 1995;
Domberger, 1998) have also indicated that cost reduction is the major driving
factor for outsourcing.
In the present study, the major strategic reason for organizations to adopt
outsourcing is to utilize vendors specialized technology and processes resulting
in better quality products and services. The outsourcing organizations indicated
that outsourcing results in quality improvement through better quality
production via advanced technological skills. Moreover, outsourcers indicated
that outsourcing enables them to avoid technology obsolescence and to keep
them up-to-date with advanced technology. Thus, it is clearly evident that
outsourcing results in added value to the company thereby resulting in improved
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quality. These advantages also correlate with the results of previous findings
(Belcourt, 2006).
The study findings indicate that vendor selection is the major challenge
faced by most of the outsourcing organizations. This is because vendor selection
involves identification and evaluation of vendors and making contracts with
them. Moreover, uncertainty exists in whether the selected vendors fit with the
outsourcing organizations culture and meet their technological demands to
produce consistent quality
This result collaborates with the results of Wadhwa and Ravindran (2007)
and Lacity and Wilcocks (1998) who also studied the major challenges faced by
HR outsourcing organizations. This clearly indicates the need of structured
framework to assist outsourcers in selecting vendors. Future studies can focus
on developing structured framework in vendor selection.
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5.1.2 Selecting outsourcing functions
The study findings revealed that Privacy and confidentiality are the major
risk involved in HR outsourcing. The outsourcers are found to be uncertain
regarding their confidentiality of data. Moreover, this relates to the security risk
1
IT Outsourcing Risks: Empirical Evidence from
Bulgarian Service Providers
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factors of outsourcing such as a lack of reliability among service providers, data
security issues and compliance issues. Similar results are obtained in the
previous study findings of Alexandrova (2012).
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of vendors include employing testimonials and customer success stories. This
will not only help to improve their image but also trust between outsourcing
organizations. This in turn enables vendors to overcome the uncertainty among
outsourcing organizations in terms of their efficiency. Moreover, the vendors
indicated that they focus on low turnaround time and adhering to deadlines.
This increases vendors efficiency as well as increases customer satisfaction. In
addition, the other effective HR outsourcing practices employed by vendors are
offering customized services, focus on customer satisfaction and maintaining
holistic relationships with the client.
Chapter 6 Conclusion
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organizations, vendor selection is the major challenge faced by outsourcing
organizations. Vendor selection is a crucial factor as it determines the
effectiveness of outsourcing. The other major challenges faced by HR
outsourcing organizations are identifying in-house and outsourcing functions,
setting limits for each task, determining performance monitoring mechanisms,
defining responsibilities for each party and identifying major risk prone areas
involved in HR outsourcing. On the other hand, the most common challenge
faced by vendors is ensuring quality work practices and adhering to work
practices.
The study results demonstrate that online portal, website for outsourcing
activities, regular meetings and periodic assessment of outsourcing policies are
some of the effective practices adopted by HR outsourcing organizations.
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6.1. Limitations and future studies
The following are the major limitations of this study:
1. The research methodology carried out in the current study was cross-
sectional qualitative study employing semi-structured interview method of
data collection to determine the major challenges involved in HR
outsourcing. Despite of the fact that a cross sectional study enables to
collect data from a huge group of people it fails to assess cause and effect
relationship. Therefore, further studies should employ longitudinal study
design to identify various benefits and challenges involved in HR
outsourcing.
2. The major limitation of this study is limited in sample size. This study
employs only 20 participants (n=10 vendors and n=10 outsourcing
organizations). Therefore, future studies should employ huge sample size.
3. This study employed, semi-structured interview method of data collection.
The major limitations of this data collection method are that the
interviewees may hesitate to reveal all the challenges and issues faced by
them in order to maintain the esteem of their company. Hence, future
studies should employ both survey and interview method of data
collection so as to improve the reliability of the study results.
4. This study determined the challenges and risks of HR outsourcing
eliminating other interesting inter-group effects. Hence, future studies
should assess whether the challenges differ with various outsourcing
activities.
5. This study is limited by focusing only on the outsourcing activities
between India and UK. Hence, future studies should whether the benefits
and challenges vary with other countries.
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6.2 Recommendations
This study offered clear insights regarding the various risks and
challenges. Our study focuses on the nascent area of IT outsourcing vendors.
We examine the issues from the standpoint of IT outsourcing vendors in India,
currently the primary destination for IT off shoring.
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6.8 Strategies to avoid the risks in HRO
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Appendix:1
Background Information
Description:
Employee:
Aron Paul is a Senior HR manager in the Kier group of construction UK. He started
his career in the company in the year 1998 as a HR and he is now HR Country Head for the
company. He has significant experience in handling wide variety of legal and regulatory
issues, having advised a number of clients in the construction sector.
Company Profile:
Kier Group of construction was started in the year 1928 by Olaf Kier. The company is
one of the early pioneers in the domain of design and construction. The company has more
than 16,000 people globally and has annual revenue of 2.8bn. Kier provides a variety of
services in terms of building and civil engineering, support services, commercial property
development, structured property financing and private and affordable housing. Kier group
has outsourced Part of their HR activities to a HR management vendor in India.
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Interview:
Mr. Aron Paul is one of the key members of the renowned company so I took prior
permission from him for an interview. Despite of his busy schedule, he agreed to answer my
questions. It was 4:30 pm and I met him in his office for the interview.
Me: How would you describe the execution of HR policies and practices in your
organization?
Aron Paul: Well, the time constraints involved in performing the multifaceted roles and
responsibilities of HR are challenging while executing HR duties. However, we follow
methodological procedures for all HR related activities.
Me: In your view what are the core motives that have influenced outsourcing decisions?
Aron Paul: The phenomenon, globalization and restructuring have surmounted the
pressures on HR department and have added to its complexity. Multiple operative offices
have increased the need for outsourcing HR related activities.
Aron Paul: Outsourcing has become a strategic imperative to our company and it allowed us
to concentrate more on productivity and quality rather than our regular HR concerns. The
major objectives of the organization can be attained cohesively using strategies when other
administrative functions are outsourced.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
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Aron Paul: The booking procedures, fare comparisons, accommodations, currency
conversions will be executed better when outsourced as they are well informed on the fares
and discount and can even negotiate better.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Aron Paul: Yes of course, outsourcing helps in decreasing redundancy of work and provides
more professional documentation, eliminating manual record maintenance replaced with
efficient processes.
Me: What challenges did you face in order to outsource your HR functions?
Aron Paul: You see, challenges will exist in each and every step in the outsourcing process.
We confront challenges mainly in selection of appropriate vendor since it is imperative for
successful alliance that a mutual agreement exists. The owner of the outsourcing agency, if
changed poses a problem in contracts and also alters the relationship and payment involved.
Aron Paul: The HR outsourcing helped us to concentrate more on strategic planning and
development of the organization rather than concentrating on our regular HR routines. We are
now able to focus on the core functionalities in order to improve the companys performance
and service quality.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Aron Paul: Yes we had a few issues in the beginning, the service quality that our vendor
company had provided is not up to our mark, as our HR vendors failed to understand our
exact requirements our work got delayed. It not only wasted our time but also increased our
budget for that project, that intern affected our customer satisfaction.
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
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Aron Paul: The rapport between the employees and the organization is minimized due to the
contracts and the organization is unable to effective understand and interpret the requirements
of the employees including their perception of corporate values, beliefs and standards.
Aron Paul: well the main reason is low cost and availability of skilled professionals. Though
the use of software/ hardware is lesser, more man-hours compensate for the work involved
and are open to adopt updated measures for improving the quality of work.
Background Information
Description:
Employee:
Mr. Johnson is the Regional HR Manager in Logicalis . Mr. Johnson joined in the
company in 2004 as a HR executive and he became the regional HR manager in the year
2011. He has significant experience in directing change management initiatives through
awareness creation, developing strategies to improve employee engagement simultaneously
assessing the employee capabilities.
Company Profile:
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Logicalis is an international IT solution and managed services provider which
started in 1988 as Logical Networks Ltd in UK. The Logicalis Group operates in Europe,
Asia Pacific, North America and South America and generates annual revenue of over $1.4
billion. The Logicalis Group provides services in data centre and cloud services, business
analytics, managed services, communications and collaboration.
Interview:
Mr. Johnson is the regional HR manager of a renowned company who is very busy
with his work schedule. Regardless of this busy schedule, when I requested him for an
interview, he immediately agreed.
Me: How would you describe the execution of HR policies and practices in your
organization?
Johnson: According to me, execution of HR policies can be practiced effectively and the
policies need to be reviewed on periodic basis to adapt to the organizations development.
Me: What are the core motives that have influenced outsourcing decisions?
Johnson: If you ask me that, the legal regulations in various countries and compliance
directives have made it complex for HR to implement them in the organization. Such
requirements call for specifically skilled personnel with knowledge.
Johnson: As per our company perspective, the information or data exposure can be
minimized as the outsourcing party will be held responsible for such conditions for which
greater protection will be exercised by the vendor.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
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Johnson: Surveys, evaluation procedures and periodic feedback of employees are well
drafted and the data collected, are processed and secured to provide information or report
from which strategic decisions can be planned rather than spending much time in formulating
and analyzing these procedures involved.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Johnson: Definitely, to carry out all the functions of HR requires a team of HR professionals
which is not feasible at developmental stages, so only the services required are outsources
instead of recruiting professionals full time at high cost basis.
Me: What challenges did you face in order to outsource your HR functions?
Johnson: The challenges we are facing in terms of getting a consorted opinion on the
vendors for outsourcing.
Johnson: If I am analysing that factor, there is not much impact in the HR team functions;
still certain functions like training, motivation for employees are better carried out by in-
house HR personnel.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Johnson: At some extent, the vendors credibility is at times questionable and requires
further scrutiny for confirming the information provided.
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
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Johnson: Outsourcing might produce better services but are not likely to affect manpower
but influence the internal employment.
Johnson: The reasons to choose India for outsourcing HR activities is due to the increased
establishment of manufacturing units, administrative or customer support centres for
international organizations in India to gain proximity to the customers.
Background Information
Description:
Employee:
Mr. David Copper is the Procurement specialist in Electron Technology. Mr. Cooper
worked in various companies and has 20 years of working experience. Initially, he started his
career as a commercial trainee and gradually he has grown up to the level of Procurement
specialist. His career in Electron technology started in November 2012. He has significant
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experience in cost reduction, strategic sourcing, supplier evaluation, procurement, electronics,
and supplier evaluation and so on.
Company Profile:
Interview:
Cooper: Of course.
Me: How would you describe the execution of HR policies and practices in your
organization?
Cooper: For me, executing HR policies is vital for any company. In our company, we have
established clear HR policies and every employee is provided a handbook of HR policies
which are also available on our internal portal.
Me: What are the core motives that have influenced outsourcing decisions?
Cooper: Following the 2008 recession, our company decided to outsource certain HR
functions since it was cost efficient and the company could focus more on its core business.
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Cooper: Outsourcing HR functions in our company have enabled the management to invest
more on its core business, expand its product range, productivity, marketing and promotion.
Hence, HR outsourcing is strategically aligned with the companys primary goals.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Cooper: Why not!! We have outsourced only recruitment function which has been
predominantly successful so far. We have been able to focus on training process which is
essential for employee performance and other appraisal processes. But there have also been
minor issues.
Me: What challenges did you face in order to outsource your HR functions?
Cooper: Basically, selecting the appropriate vendor was the primary challenge that we faced
since it is important for a successful alliance that a mutual agreement exists.
Cooper: Some of my colleagues felt that the essential HR task being recruiting should not be
outsourced. Most of our HR activities now focus on payroll, employee motivation and
training.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Cooper: Yes yes!!! There is insufficient knowledge about skill requirements for a non-IT
organization.
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Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Cooper: HR department in any organization deals with confidential information both of the
company and employees. Outsourcing this function involves risk. Hence, it involves
elaborate legal agreements before outsourcing HR functions.
Cooper: Well, people in India are highly professional and dedicated too. Besides, we can get
good quality of work at low cost and the place is very safe for an investment.
Background Information
Description:
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Employee:
Mr. Kenneth price is the Associate HR Manager in Ricco Associated Ltd. Mr.
Kenneth joined in the company in 2004 as a HR executive and the he became the associate
HR manager in the year 2012. He has a significant experience in directing change
management initiatives through awareness creation, developing strategies to improve
employee engagement simultaneously assessing the employee capabilities.
Company Profile:
Interview:
Kenneth: Ya ok.
Me: How would you describe the execution of HR policies and practices in your
organization?
Kenneth: The HR policies we practice are not different from the norms followed by most
organizations and we have made them employee centric while also maintaining a professional
work culture. We have recently introduced an online tool through which employees can post
their grievances since many of them are unsure of who to approach and how to deal with
work place problems.
Me: What are the core motives that have influenced outsourcing decisions?
Kenneth: The management started taking advantage of IT advances for several of its
functions. With regards to HR activities, we did not have the IT expertise and outsourcing
seemed to be more cost effective.
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Me: From a strategic viewpoint, how do you view Outsourcing as an initiative?
Kenneth: HR outsourcing has increased the efficiency in terms of recruitment which adds
value to the organizations primary goal of improving employee performance.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Kenneth: Ya sure!! During the initial phase of outsourcing, the company faced problems
with respect to mutual agreements. However, it has eased in-house HR functions and we are
able to focus on core HR functions like talent acquisition.
Me: What challenges did you face in order to outsource your HR functions?
Kenneth: See, companies making the strategic decision to outsource manufacturing or design
service confronts several challenges. In our company, it was challenging to establish the right
alliance to ensure that the companys mission, vision and goals are upheld.We had to
ensure that the type of knowledge required and the culture that exists is understood by the
vendor.
Kenneth: It requires for us to constantly interact with our HRO vendors and we feel this is an
additional task. Even though some functions are outsourced, we have to keep track for our
own record. We feel it has increased our work.
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Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Kenneth: Hmm well yes!!! The quality of service has been fluctuating and the process of
legal agreements to uphold the trust is complex.
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Kenneth: There is certainly the risk of loss of control over HR policies among employees.
For example, if there are issues with employees salary payment, they are unsure of who to
approach and how to resolve the problem.
Kenneth: In India, many professional people are available at lower cost. At the same time,
we can get quality work from them.
Background Information
Employee:
Mr. Clement Hubert is the Senior HR Manager in Arvato Bertelsmann Ltd. Mr.
Hubert has profound knowledge in Human resource consulting, recruiting, training and
development arena. Mr. Hubert joined in the company in 2004 as a HR executive and he
became the senior HR manager in the year 2012.
Company Profile:
Interview:
Huber: Yes.
Me: How would you describe the execution of HR policies and practices in your
organization?
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Huber: Execution of HR policies is not only good for employees but also for the
organization. Our company strictly follows well framed HR policies and ensure that we
address the grievances of our employees.
Me: What are the core motives that have influenced outsourcing decisions?
Huber: Well, companies generally view outsourcing for administrative purposes, like
pension, healthcare and employee welfare related aspects which are considered to be
cumbersome processes involved in preventing the conception and implementation of growth
related strategies.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Huber: The benefits basket was entirely demanding to be outsourced as it involved health
insurance, medical claims, family health covering schemes, etc., which was too much to
handle and required financial and medical knowledge to process these functions.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Huber: Success and failure are common for any business. Well, yes, we have achieved
fruitful success in outsourcing business as the vendors are updated with the latest information
on regulations and schemes for benefits, it was considered to hire them to perform these
functions of the HR department.
Me: What challenges did you face in order to outsource your HR functions?
Huber: Some vendors were hesitant in disclosing the companies who had availed their
services which the vendors claimed to be associated with and have provided appreciable
results. In such cases the claims of the vendors are skeptical.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Huber: Yes!! There is a gap in transferring the skill and knowledge which is specific for the
position which in turn affects the productivity of the organization.
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Huber: The management sometimes losses track of the functions that are executed if any
aspect of the HR functions are outsourced for which necessary procedures need to be
structured before outsourcing.
Huber: India has the largest pool of talented people and it is easy for companies to find out
employees at affordable rates.
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Background Information
Description:
Employee:
Mr. Richard is the HR Manager at Software Company. He has good knowledge in the
management area specifically human resource consulting, recruiting, training and
development. Mr. Richard joined in the company in 2004 as a HR executive and he became
HR manager in the year 2012.
Company Profile:
Cygnet info tech is a multinational software consulting company and has 14 years
of experience in developing web and mobile software. The company provides a variety of
services such as customer software development, software testing, mobile app development
and software product maintenance.
Interview:
Mr. Richard is the HR manager of a well established and renowned company. I have
met him in his office and requested him for an interview. Without any hesitation, he
immediately agreed.
Richard: Yes
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Me: How would you describe the execution of HR policies and practices in your
organization?
Richard: HR policies are very important for an organization and having realized this we
have excellent policies and procedures which will be updated periodically and intimated to
our employees.
Me: What are the core motives that have influenced outsourcing decisions?
Richard: Our parent organizations are concerned with the expenditure involved in executing
HR activities for newly founded organizations.
Richard: According to me, time consuming activities such as processing procedures and
verification processes can be executed by outsourcing thereby providing time and scope for
planning and implementation of strategic goals.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Richard: The payroll process and fulfillment of government regulations in payment process
or conforming to labor laws, which might interfere with the crucial time of the organizations
growth. Therefore, such unavoidable procedures that have to be executed promptly are best
executed by the vendors who keep updated of the latest government rules and regulations and
are aware of its procedures.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Richard: Yes. Professional reporting on all the training, evaluation methods will enable to
assess the outcome of the strategies employed and associate with returns on investment.
Me: What challenges did you face in order to outsource your HR functions?
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Richard: Well, the resources or the expertise available, the software and hardware systems
involved and also the reliability of the firm on all these aspects against the claims of the
vendors is daunting to scrutinize the facts.
Richard: Sometimes employees with inappropriate skill set recruited were challenging to be
trained and attitude alignment with the vision and mission of the organization were
compromised resulting in low productivity.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Richard: There were possibilities of cross cultural differences between our organization and
the vendor and a clear understanding was lacking past these barriers
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Background Information
Description:
Employee:
Ms. Andrea is the HR regional head of the Aegis global service company. He has in-
depth knowledge in good employee relations experience, along with strong project
management skills and he has the ability to manage multiple stakeholders across different
locations.
Company Profile:
Interview:
Ms. Andrea is the Regional HR manager of a prominent company. One fine morning I
have met him in his office and requested him for an interview. He accepted the request
without any aversion.
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Me: Madam, shall we move on to the interview?
Me: How would you describe the execution of HR policies and practices in your
organization?
Me: What are the core motives that have influenced outsourcing decisions?
Andrea: Truly speaking, the reason is the low cost. The factors that seemingly drive
organizations for outsourcing can be a cost and man-hours involved in executing the norms,
legal processes and reducing business volatility.
Andrea: As per me, Volumes of data processing or insurance, healthcare procedures can be
facilitated by outsourcing agencies or vendors which renders the organization free from
involving in such elaborate processes.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Andrea: In our organization, mostly temporary staffing is handed over to the vendors as they
are likely to be replaced frequently and their payroll and other associated procedures are not
to be interfered with the growth of the organization.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Andrea: From my perspective, sometimes best management practices and updated personnel
management techniques.
Me: What challenges did you face in order to outsource your HR functions?
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Andrea: See, without any challenges, there will not be any enthusiasm. Lets come to the
point, the customer service, including the response time, contact establishment and mode of
communication for clarifications are vital which are compromised with certain vendors.
Andrea: Employee rapport and record of grievances and feedback were overlooked as
employees resort to approach vendors reading the allocated functionalities.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Andrea: It is important to identify the vendor who could comprehend the requirements of the
organization and translate it to suit the requirements which at times can make the
organization quite dependent on them
Andrea: Hmm!!!!! Well, the primary motive is to reduce operational costs involved in
setting up an entire team of professionals and supportive infrastructure.
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Background Information
Description:
Employee:
Mr. Adam is a senior HR manager in the Allied global solution for last 3 years. He
joined in the company as an HR manager in 2006. He is very efficient in developing,
implementing and evolving HR policies to maintain a high business growth in areas such as
performance management, organizational design and career development.
Company Profile:
The Allied global solution is leading global managed IT Outsourcing company. The
company established in the UK in 1992. The company provides IT Outsourcing Services and
operates in EMEA, North and South America, Australia and Asia Pacific.
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Interview:
Mr. Adam is a prominent HR manager in Allied global solution. He is always busy with
his managerial tasks. Despite of his hectic schedule, when I approached for an interview, he
gave me the permission without any hesitation.
Adam: Yes
Me: How would you describe the execution of HR policies and practices in your
organization?
Me: What are the core motives that have influenced outsourcing decisions?
Adam: Well, our company feels that outsourcing is the panacea for all problems. It is a kind
of shortcut procedure to obtain high competitive advantage in marketing niche.
Adam: In my opinion, Outsourcing has become a strategic imperative to our company and it
increases the organization flexibility, productivity and quality.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Adam: We are outsourcing our administrative tasks. The reason behind this is if our
manpower is concentrating more on the administrative tasks, we will not be having enough
time to focus on our strategy planning.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Adam: Obviously, HR outsourcing helps us to minimize risk in terms of labor laws and
employment regulations which our employees may come across.
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Me: What challenges did you face in order to outsource your HR functions?
Adam: We are facing challenges in identifying the key metrics which are important to attain
the business goals and performance. Apart from that it is difficult to understand the factors
which will lead to user satisfaction.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Adam: Not that extent, but still some vendors fails to provide the best practices which the
service provider learned from its other clients.
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Adam: Well, while outsourcing the HR functions, our company should give the employee
information to the vendor. It may create a security problem.
Adam: As per me, in the world, the people of India have a sound technical knowledge. This
is the reason we prefer India for HR outsourcing over other countries.
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Background Information
Description:
Employee:
Mr. Zephan is Regional HR head of Acora Solution who is joined in the company in
2004 as a HR manager. Then he got promoted to HR Regional Head in 2009. Mr. Zephan
possesses good employee relations experience, along with strong project management skills
and he has the ability to manage multiple stakeholders across different locations.
Company Profile:
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Acora is an international organization which provides outsourcing solutions with
headquarters in the UK. The company provides consultancy services, cloud services, IT
security etc.
Interview:
I approached Mr. Zehan, who is the regional head of a famous company, despite of
his busy schedule, he immediately accepted my request.
Me: How would you describe the execution of HR policies and practices in your
organization?
Zephan: In our company, the HR policies are framed based on the suggestions which are
obtained from employees. Presently, our company established a new website where
employees can easily express their suggestions and feedbacks.
Me: What are the core motives that have influenced outsourcing decisions?
Zephan: One of the biggest factors which made our company take the outsourcing decisions
is cost reduction and brings more profit to the company.
Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Zephan: We outsource finance related functions. It helps us to save money and we will get
more time to focus on the key part of our business.
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Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Zephan: Why not? The most obvious benefit is in terms of cost savings. Also, it enables us
to deliver our services a faster rate.
Me: What challenges did you face in order to outsource your HR functions?
Zephan: good question! The biggest challenge we are facing in identifying the risk factors
for the company and transferring them over to the outsourcing partner.
Zephan: As you rightly asked, it may bring a negative impact on our internal team and they
will lose their motivation, feeling that their significance as good performer became less.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Zephan: As you know, nobody is perfect. Due to some mistakes made by the vendor, our in
house employees need to rework on the same task, which in turn affected our whole
productivity.
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
Zephan: In my opinion, the main risk associated with our in house employee satisfaction. If
a third person handles the HR functions, employees may feel their issues aren't being handled
properly by the employer.
Zephan: Well, employees from India are very talented and they will assure fast turnaround
time.
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Background Information
Description:
Employee:
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Mr. Wilson is the HR manager in Capita, who joined in the company in 2006 as an
HR executive. He is well experienced in recruitment, career development, compensation and
benefits, employee relations, grievance issues, industrial relations, employment law,
compliance etc.
Company Profile:
Interview:
Wilson: Sure.
Me: How would you describe the execution of HR policies and practices in your
organization?
Wilson: Regarding the HR practices in our company, I can say that we have well-developed
HR policies which favors both company and staff members. Before implementing new
policies, we will conduct meeting with employees in order to get their suggestions.
Me: What are the core motives that have influenced outsourcing decisions?
Wilson: Fine, it is a boon to our company which yields more profit and strengthening the
bottom line.
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Me: Which HR functions did you perceive required Outsourcing and what influenced
your decision?
Wilson: Well, we outsource some specific business functions, which can reduce the
operating cost of our business and thereby achieving superior customer service and
productivity.
Me: Would you describe your HR outsourcing function as successful? If yes, in what
ways has it benefited the organization?
Me: What challenges did you face in order to outsource your HR functions?
Wilson: Ok, the challenge we are facing related to the service costs. That means, we are
finding difficulty in understanding the process costs which is to be transferred to the vendor
and finding a mutually exclusive cost model for the same.
Wilson: Hmm... Some of my colleagues lost interest work, thinking that their job role is
being moved away. It affects their performance, hence reducing companys productivity.
Me: Has your organization faced any issues related to HR outsourcing? If yes, describe
the instances?
Wilson: Yap, recently we got a bad feedback from one of our client due to the mistake made
by the companys outsourcing vendor,
Me: What were the risks that you had to work with during HR outsourcing services in
your organization?
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Wilson: One of my important considerations is in the quality of service provided by the
vendor. If the quality is not up to the mark, ultimately, our company is responsible for that,
right?
Wilson: According to my perspective, in India, it is very easy for us to find the talented
employees at an affordable rate.
Background Information
Employee:
Company Profile:
The company was commenced in the year 1996 as a captive / in-house unit of British
Airway and was known as a WNS World Network. It provides several services in the area of
risk management, healthcare, insurance, manufacturing, media and entertainment, retail and
consumer packaged goods, shipping and logistics, telecommunications and so on.
Interview:
Mr. Karan is a senior officer in a global company. I have met him in his office and
requested him for an interview. He immediately agreed to give me an interview.
Karan: Yes.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
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Karan: We have been in business for the past 15 years, which is evident of our success.
Various multinational companies outsource their HR activities so that they can expand their
business and invest more on their core activities.
Karan: Well, response time or miscommunications are the commonly occurring issues;
however, when the client is satisfied with the solutions these issues are rectified from
occurring further
Me: As HR specialist, what are the core functions of HR you think that influence
organizational strategies?
Karan: HR functions are critical to the everyday operations of the business and as the
organization develops, the functionalities associated are also significant. Important aspects
such as soft skills training, additional updated skill set for the employees are also important to
execute the strategic decisions taken by the organizations.
Karan: For me, contractual agreements, coaching, relocation, compensation programs, fire
drill, orientation of laws against sexual harassment, food and transport contracts are some of
the most commonly outsourced HR functions.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Karan: There are certain payment issues that arise with the services provided which might
vary in perspective depending on the continuous change during the development of the
organization.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
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Karan: We have a record of all the testimonials and successful practices that has enhanced
our clients in meeting the goals, posted on our website. Our clients are also enlisted in our
website which can be viewed or verified.
Me: What challenges do you have to face when you provide HR services for developed
countries?
Karan: We found that training and interview patterns, information management pertaining to
the employees of the developed countries are much more stringent and necessitate the
employment of sophisticated evaluation and assessment procedures.
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Background Information
Description:
Employee:
Mr. Rajesh is the Assistant manager well established BPO service firm. He started his
career in the company during 2000 as a Team leader and gradually he got promoted as
Assistant Manager.
Company Profile:
Reliance BPO services is one of the well-established company In India. India`s largest
private sector Information and communications company, a non banking financial services
company and India`s largest integrated private sector power utility company, among other
national & international businesses from telecom and banking verticals and generated the
total revenue of US $ 6 billion.
Interview:
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Rajesh: For the last 15 years, our company successfully run this business and we have
received a number of projects from various multinational organizations regarding HR
outsourcing activities.
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Me: What kind of apprehensions do companies have in outsourcing their HR functions
and how do you deal with them?
Rajesh: Companies are concerned about confidentiality issues and quality of service. We
have framed precise policies and ensure that we clearly understand the requirements of our
clients.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Rajesh: For me, recruitment and training play an important role in influencing the
organizational strategy.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Rajesh: We have never faced any issues with our clients. We provide quality service and
regularly ask for feedbacks. Our clients are satisfied, engaging with us for their HR functions.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Rajesh: We request our top clients to write testimonials on our website.. We keep our
clients engaged on professional networking sites. We are flexible with our service and
provide customized service to our client which builds trust.
Me: What challenges do you have to face when you provide HR services for developed
countries?
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Me: What are risks in accepting HRO from developed countries?
Rajesh: There are no risks per se.. But multinational companies based in the US and UK
tend to undermine the capabilities of Asian vendors
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Background Information
Description:
Employee:
Mr. Samuel is the Marketing head of a consultancy. Initially, he started his career in
the company during 2000 as a Team leader and gradually he got promoted as marketing head.
Company Profile:
Zenith consultant is the famous consultant in North India. They placed first position in
providing consultant service for IT sector. Zenith Consultancy Services can help your
business to develop strategic marketing campaigns to ensure that all contacts generated are
target specific inbound leads with the prospective clients. Interview:
Mr. Samuel is the Marketing head in a well-established consultant. Despite of his busy
schedule, he agreed to give an interview.
Samuel: Ok.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
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Samuel: We are ranked one among the top ten Indian outsourcing vendors. Most
organizations that outsource intend to advance and speedup the recruitment process and
reduce the cost involved.
Samuel: Some of our clients are concerned with leakage on information. To avoid this, we
strictly maintain confidentiality of our clients.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Samuel: Human resource is the primary driving factor of any business. Hence, building a
strong human capital is the essential task of a HR team.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Samuel: Even though we employ sophisticated tools for HR functions, errors do happen. For
example, mistakes while entering candidate details, errors in salary crediting etc. But these
have been rare scenarios and every time we try to eliminate possibility of errors.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Samuel: We do not engage in much of promotional activities since we are already well
established. We present and follow stringent recruitment policies and maintain good
relationship with all our clients which build trust.
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Me: What challenges do you have to face when you provide HR services for developed
countries?
Samuel: Since we need to co-ordinate with our UK counterparts, we need to work on a shift
basis and in some cases where the candidate is located abroad; processing documents may be
time consuming.
Samuel: We have several clients from different parts of the world including US, Canada,
Australia and UK We have not faced any risk dealing with these companies.
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Background Information
Description:
Employee:
Mr. Chandrapaul is the senior head of a software company. During his initial period,
he struggles a lot and finally he reached his ultimate position as Senior HR.
Company Profile:
The Ace technology solution is an ISO 9001:2008 Certified company providing end
to end software solution. It provides a range of services such as Open Source Development,
Web Design & Development Services, Software Testing, Technical Maintenance and Support
services.
Interview:
Mr. Chandrapaul is a Senior HR who is very busy with his work schedule. I have an
opportunity to meet him in his office and I requested him for an interview. He agreed to give
me an interview.
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Me: Shall, I start the interview sir?
Chandrapaul: Sure.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Chandrapaul: Yes of course!!!! We are able to control the staffing procedures and provide
continuous staff rotation and also negotiate with prospective employees on the CTC.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Chandrapaul: Well, in our company, temporary staffing procedures are often outsourced
based on the requirement of client.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Chandrapaul: Sometimes payment issues have occurred with the services provided which
may differ in perspective relied on the changes occurs during the development of the
organization.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
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Chandrapaul: We maintain a record of all our success stories and practices that has
enhanced our clients in meeting the goals, posted on our website.
Me: What challenges do you have to face when you provide HR services for developed
countries?
Chandrapaul: The cultural and legal differences are most stringent forms of challenges we
come across when dealing with HR outsourcing in developed countries.
Background Information
Description:
Employee:
Mr. Sami is the HR manager of Genpact who joined in the company in 2008 as HR
executive. He is well versed in recruiting employees, career development and employment
law, etc.
Company Profile:
Interview:
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Mr. Sami is a dedicated, efficient, and prominent HR manager of Genpact an
international BPO company. He always seems to be more active, busy and friendly person.
Though he was too busy, he allocated some time when I approached him for an interview.
Sami: Ya sure.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Sami: The methodology for process improvement is challenging for us as it is for the
organization when implementing it, nevertheless we learn and improve each time with the
requirements to match their expectations
Sami: Companies are concerned about whether their requirements are clearly understood by
us. We meet them with concerned professionals who have the knowledge to comprehend
their requirements from where start off.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Sami: HR function is imperative for day to day operations in the business. The talent and
skill management are primary factors that influence the organizational strategies of an
organization.
Sami: Additional facilities such as transport, medical insurance, health benefits or schemes
are highly preferred to be outsourced.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
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Sami: The performance measurement parameters set by the organization may vary from that
of the performance set by us which in turn needs to be reassessed.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Sami: We explain the methodologies and the suggested alternatives which are convincing for
the clients to relate that their requirement will also be fulfilled as previous cases handled.
Me: What challenges do you have to face when you provide HR services for developed
countries?
Sami: The work policies and ethics are different and solutions have to be modified according
to such policies and practices of the organization while the HR functions are outsourced to us.
Sami: It is important for us to convince the multinational companies that we are aware and
are knowledgeable of the organizations legal and governmental policies so that they can
entrust us with their requirements to offer our services otherwise which the contract can be
terminated.
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Background Information
Description:
Employee:
Mr. Kishore is the Branch head in one of the famous company TCS. He is too sincere
and dedicated person. Because of these qualities, he got promoted as branch head during
2012.
Company Profile:
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TCS BPO is the second after Genpact to cross this mark. TCS BPO has 34000
working professionals. It experienced a growth of 14% last year and contributed to 11% of
the total revenues of TCS.
Interview:
Mr. Kishore is a prominent branch head in TCS group. He is too active and busy with
his work always. Despite of his hectic schedule, when I approached for an interview, he gave
me the permission without any hesitation.
Kishore: Definitely.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Kishore: It is difficult to perform the redundant process of calculating and processing health
care facilities which involves the collection and submission of supportive documents which
the organizations prefer to rather outsource than get involved with.
Kishore: The iteration rate is another challenge which we come across while recruiting for
organizations, but pinning down a person into a position which is not fulfilling will result in
such issues. However, we have constant discussions about it with organizations and try to
prevent staff turnover.
Me: As HR specialist, what are the core functions of HR you think that influence
organizational strategies?
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Kishore: Government, labor policies, or regulations and filing of tax returns are also
outsourced to be completed by the vendors as it involves immense paperwork.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Kishore: Translating the organizations objectives and mission into the prospective employee
while recruitment is important and the reception of information varies from employees.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Kishore: Our subject analysis experts are the first point of contact that are well versed with
the problem scenario and assess the requirement of the clients.
Me: What challenges do you have to face when you provide HR services for developed
countries?
Kishore: Language in some countries can be a barrier and often may lead to
miscommunication as the terminologies or technical terms can often be misunderstood across
countries.
Kishore: Any change in authority or in the case of acquisitions or mergers, the contract has
to be redrawn and at times there are high chances of losing the contract.
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Background Information
Description:
Employee:
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Mr. Luke is the regional level manager of Birla group. He is very brilliant in handling
employees and excellent in his work. He joined in this company as junior level manager
during 2004 and he got promoted as regional level manager.
Company Profile:
Aditya Birla Minacs is a business processing service provider and a subsidiary of Aditya
Birla Corp. The company started its operations in 2007 and in six years the company has put
up a turnover of $438 million while adding 21000 employees.
Interview:
Mr. Luke is a regional level manager of well established firm. One day, all of sudden I
got an opportunity to meet him in his office and I requested him for an interview. He
immediately says yes without any hesitation.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Luke: We collect information on the regulations issued by the government and while it is
about to be implemented, we are prepared with the essentials to complete the process for the
employees of the organization.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
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Luke: Being a HR specialist, I consider certain factors such as soft skills training, knowledge
updated skills, etc are the influential factors of organizational strategies.
Luke: Mostly, the functions like coaching, compensation programs, food transport contracts,
medical insurance, health benefits are highly preferred for outsourcing.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Luke: Data protection and privacy laws need to be conformed for which experienced and
skilled workforce is required for our team without which such policies can be compromised.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Luke: Client sometimes comes up with the solutions which are required to be followed on
periodic basis and we assure them that we possess the appropriate software and facilities
required to periodically process the functions specified.
Me: What challenges do you have to face when you provide HR services for developed
countries?
Luke: The executions of new methodologies, training, interview pattern, languages, work
policies, ethics are the areas where we can face major challenges.
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Background Information
Total no of employees:
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26000
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Description:
Employee:
Mr. Shiva is the Head of customer service quality in a well renowned business
outsourcing company. During his initial period, he struggles a lot and finally he reached his
ultimate position as Senior HR.
Company Profile:
Interview:
Mr. Shiva is the head of customer service quality and always busy with his work. I
have an opportunity to meet him in his office and I requested him for an interview. He
immediately says yes without any hesitation.
Shiva: Yes.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Shiva: We are providing assistance to the organization right from the initial stage by
understanding their requirements and minimizing on the time taken to comprehend those
requirements employing skilled professionals who can immediately understand the
requirements and associate with updated solutions.
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Shiva: There are at times uncertainty in the functions of internal HR and those that have been
assigned to us. The clear demarcation of the roles and functionalities can be used in resolving
such discrepancies.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Shiva: Innovative workforce management skills and motivation for the employees towards
achieving strategic goals are important core functions of the HR department.
Shiva: High-volume recruitment and payroll generation and human resources maintenance
are the outsourced HR functions.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Shiva: Yes of course!!! Clear communications of the goals, timeline are not provided which
leads to a lot of misunderstandings.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Shiva: Out team expertise and the previous accomplishments are satisfactory for the clients
to entrust in our services.
Me: What challenges do you have to face when you provide HR services for developed
countries?
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Background Information
Description:
Employee:
Company Profile:
Interview:
I met Mr. Arjun in his office for the interview, despite of his busy schedule he agreed
for it immediately.
Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Arjun: Definitely, our existence in the industry for these many years is a proof for that. By
outsourcing the HR functions, client companies can focus on their core business activities.
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Me: What kind of apprehension do companies have in outsourcing their HR functions
and how do you deal with them?
Arjun: Ok, outsourcing causes the company to lose control over whos doing what and the
details, which is an important consideration.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Arjun: According to me, HR functions are very significant to every organization. The core
functions which affect organizational strategy are staffing, training and development,
employee engagement.
Arjun: From my experience, I understood that the most common HR functions which
companies outsourced are payroll, background checks, temporary staffing, employee
relocation etc.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Arjun: In my opinion, the most common issue which every outsourcing partners face is
making a mutually agreeing cost model for the processes which is outsourcing.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Arjun: By ensuring 100% customer satisfaction and providing low turnaround time, we are
maintaining a good relationship with our clients.
Me: What challenges do you have to face when you provide HR services for developed
countries?
Arjun: In my perspective, the communication pattern and language is the main barrier. We
are now providing adequate training to overcome; still it persists as an issue
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Me: What are risks in accepting HRO from developed countries?
Arjun: In my perspective, once we made a good relationship with the client in terms of trust
and their customer satisfaction, there will not be much risk.
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Background Information
Description:
Employee:
Mr. Jousha is a marketing head of global IT Service Company. He has good potential in
managing marketing and sales teams and capable of identifying markets for the companys
products and service. He joined in the company as a sales representative and he got promoted
as marketing manager in 2010.
Company Profile:
Interview:
Mr. Jousha is the most sincere and fun-loving person. When I approached for an
interview, he gave me the permission without any hesitation.
Joshua: Sure.
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Me: Has your business of providing HR services to organizations been successful? Why
do companies prefer to outsource HR activities?
Joshua: Yes, of course. HR outsourcing enabled our company to attain competitive edge
over competitors by delivering products promptly as well as with high quality. In my
experience the main reason for companies to outsource is to save cost and eliminate risks.
Joshua: Yes, outsourcing comes up not only with advantages but also with certain
disadvantages. Outsourcing limits our flexibility in few ways. However, its benefits
overcome its disadvantages.
Me: As HR specialist, what is the core functions of HR you think that influence
organizational strategies?
Joshua: Generally, bulk recruiting, temporary staffing, payroll, updating staffs handbooks
and policy manuals.
Me: Have you faced any issues with organizations you provide HR services for? If yes,
what kind of issues have you faced?
Joshua: No, I have not faced any such issues till now. Well-documented legal agreements
helped us to avoid these kinds of issues.
Me: What initiatives do you take to market your service and how do you build the trust
for your clients?
Joshua: We mainly focus on excellent customer service and effective marketing strategy to
attract customers.
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Me: What challenges do you have to face when you provide HR services for developed
countries?
Joshua: Huge pay and inconsistent performance are the two major issues we faced while HR
outsourcing in developed countries.
Joshua: As I mentioned above, both these factors are the main challenges we faced with the
developing countries.
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Appendix : 2
Table 4.1: Table below presents main themes emerged under HR policies and
procedures, description and relevant interview codes.
Main Themes emerged: Description of themes Interview codes
HR Policies and
Procedures
Online tool and INT_3_OUT ;
Handbook, Suggestions INT_4_OUT;
Effective HR practices from employees, conduct INT_5_OUT;
meetings to post INT_7_OUT;
grievances and read INT_9_OUT;
policies and made INT_10_OUT
employee centric to
mitigate the problems
faced by the employees
Table 4.2: Table below presents main themes emerged under Motives that
influenced Outsourcing Decisions, description and relevant interview codes.
Motives that influenced Description of themes Interview codes
Outsourcing Decisions
Globalization and restructuring, INT_1_OUT;
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Phenomenal Motives Multiple Operative Offices, INT_2_OUT;
and Complexities that Legal regulations, companies are INT_6_OUT
have led to outsourcing concerned with the expenditures
Decisions involved in executing HR
activities,
Major Driving Factors Cost-effective and could focus INT_3_OUT;
more on business, Can avail INT_4_OUT;
better advantage of IT advances, INT_5_OUT
outsourcing is panacea for all INT_7_OUT;
problems, a shortcut procedure INT_8_OUT;
to obtain high competitive INT_9_OUT;
advantage, view outsourcing for INT_10_OUT
administrative purposes, like
pension, healthcare and
employee welfare related
aspects
Table 4.3: Table below presents main themes emerg ed under Strategic
viewpoint Of Outsourcing Decisions, description and relevant interview codes.
Strategic viewpoint Of Description of themes Interview codes
Outsourcing
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be minimized and greater (INT_10_OUT);
protection exercised by the
vendor. efficiency in
recruitment,
Other beneficial factors Possible approach to execute or (INT_5_OUT);
restructure internal processes (INT_6_OUT);
delivering strategic advantages, (INT_7_OUT);
time consuming activities such
as dats processing procedures
and verification processes, or
insurance, healthcare
procedures can be done by
outsourcing,
Table 4.4: Table below presents main themes emerged under driving factors of
HR outsourcing description and relevant interview codes.
Driving factors of HR Description of themes Interview
outsourcing codes
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transportation are well executed, (INT_3_OUT);
employees periodic feedback are well- (INT_5_OUT);
drafted, processed and secured, (INT_7_OUT);
recruitment process and health (INT_9_OUT)
covering schemes handled by
outsourcing, handle payroll procedures
of temporary staffing, updated with
governmental norms, finance related
functions, specific business functions
Major Drawbacks of in- Background checks of employees (INT_4_OUT);
house HR management became challenging while conducting (INT_6_OUT);
mass recruitments, payroll process (INT_8_OUT);
affect crucial time of the organizations
growth. Handling administrative tasks
are time-consuming
Table 4.5: Table below presents main themes emerged under Benefits of HR
outsourcing functions description and relevant interview codes.
Benefits of HR Description of themes Interview Codes
outsourcing functions
Table 4.6: Table below presents main themes emerged under challenges and
issues of outsourcing functions description and relevant interview codes.
Challenges and Description of themes Interview codes
issues in outsourcing
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Table 4.7: Outsourcing and its impact on HR team
Outsourcing and its Description of Interview codes
impact on HR team themes
Table 4.8: Table below presents main themes emerged under issues related to
HR outsourcing functions description and relevant interview codes.
Issues related to HR Description of Interview codes
outsourcing themes
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Table 4.9: Table below presents main themes emerged under Risks in HR
outsourcing functions description and relevant interview codes.
Risks in Description of themes Interview codes
HR Outsourcing
Table 4.10: Table below presents main themes emerged under outsourcing
destination, description and relevant interview codes.
Outsourcing Description of themes Interview codes
Destination:
India
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outsourcing investments, avail quality work, fast INT_(7)_OUT;
destination turnaround time, INT_(8)_OUT;I
NT_(9)_OUT;
INT_(10)_OUT;
Table 4.11: Table below presents main themes emerged under motives and
effective HR outsourcing and practices, descript ion and relevant interview
codes.
Motives of HR To expand their business, (INT_OV_01;
outsourcing to focus on core INT_OV_03;
activities, to reduce cost INT_OV_06;
and time, to update the INT_OV_07;
process, to follow rules INT_OV_08;
and regulations of INT_OV_09;
Government, to reduce INT_OV_10)
work load, to attain
competitive edge
Table 4.12: Table below presents main themes emerged under role of HR in
influencing organizational strategies, description and relevant interview codes.
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Role of HR in Description of Interview codes
influencing themes
organizational
strategies
Soft skills training, INT_(1)_OV;
INT_(2)_OV;
knowledge updated
skill set, building a INT_(3)_OV;
strong INT_(4)_OV;
human capital,
leadership INT_(5)_OV;
development and
management of INT_(6)_OV;
manpower,
training and INT_(7)_OV;
recruitment, INT_(8)_OV;
innovative workforce
management INT_(9)_OV;
INT_(10)_OV
Table 4.13: Table below presents main themes emerged under commonly
outsourced HR functions, relevant interview codes.
Commonly outsourced Description of themes Interview codes
HR functions
Table 4.14: Table below presents main themes emerged under issues faced by
outsourcing vendors description and relevant interview codes.
Issues faced Description of themes Interview codes
by outsourcing
vendors
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Table 4.15: Table below presents main themes emerged under marketing
strategy, description and relevant interview codes.
Marketing Description of themes Interview
strategy adopted codes
by outsourcing
vendors
Table 4.16: Table below presents main themes emerged under challenges of
outsourcing functions
Challenges faced by Description of themes Interview codes
HR outsourcing
vendors from
developed countries
Table 4.17: Table below presents main themes emerged under risks of HR
outsourcing functions description and relevant int erview codes.
Description of themes Interview codes
Risks faced by HR
outsourcing vendors
from developed
countries
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Customer service quality to be
maintained at all times,
undermine the capabilities
Havent faced any Process and requirement is well INT_(1)_OV;
risks outlined, maintain good INT_(9)_OV;
relationship with our clientele
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