BUSINESS PROCESS OUTSOURCING – RATIONALE

FOR IMPLEMENTING E- HUMAN RESOURCE

TECHNOLOGY.

INTRODUCTION:

Management affects everyone because it is present in every aspect of the world.

Information technology is expected to enhance the productivity of Human
Resource Management (HRM) by shifting its attention from administration or
personnel management to strategic HRM. HRM is the art of managing people at
work in order to achieve organizational goals. The concept of E-HRM is an
advance business solution which provides a rich online support in the management
of all processes, activities, data and information required, to manage human
resources in any organization. The overall purpose of human resource
management is to ensure that the organization is able to achieve success through
people.

ELECTRONIC HRM (E-HRM):

Electronic HRM (E-HRM) is a term that identifies a form of technology that

enables HR professionals to integrate an organization’s human resources strategies
and processes in order to improve overall HR service delivery. Initially HR
systems were “paper-based.” The use of technology within human resource
management has grown considerably over the years. Technology can also be used
to provide HR information and to enable managers and employees to perform
simple HR tasks themselves. The concept of Electronic Human Resource
Management known as E-HRM meaning “the adoption of technology in delivering
Human Resource practices due to the digital revolution in the world is such a tool
that organizations can employ to manipulate the performance and behavior of the
employees to achieve business success . IT is beginning to enable organizations to
deliver state-of-the-art HR services, and reduced costs have enabled companies,
regardless of the firm size-to purchase HR technologies.

BENEFITS OF E-HRM :

Information Technology is a tool to facilitate the collection, analysis,

dissemination and use of information. It includes hardware and software for the
support of organizational information. IT offers many ways to improve the quality
of service, help staff to make better use of their time and expertise and promote
greater efficiency.

The biggest benefit of using IT in HRM to organizations is the freeing of HR staff

from intermediary roles which enable them to concentrate on strategic planning in
human resource organization and development. In the present context of increasing
globalization, employing organizations and their environments have become
increasingly complex. Managers of cross- cultural organizations are facing
growing difficulties in coping with workforces that may be spread across a variety
of countries, cultures and political systems. Given such trends, IT has considerable
potential as a tool that managers can utilize to increase the capabilities of the
organization

The reasons behind an organization’s introduction of an HRIS may vary

considerably from the need to facilitate efficient processes or cut costs, to improve
communication and customer service, or the desire to create a shift in the role of
the HR function from one that is mainly administrative to one that is more
strategic. Using HRIS technology can help HR automate and simplify tasks, reduce
administration and record keeping, and provide management with HR-related
information when required.

BUSINESS PROCESS OUTSOURCING:

It is the delegation of one or more of IT intensive business processes to an

external provider, which in turn owns, manages, and administers the selected
processes based on defined and measurable performance criteria. BPO as per the
work performed can be classified as

Voice Based: which includes customer related services such as technical support,
marketing etc.

Non-Voice: which includes internal business operations. And as per the location
involved it can be classified as:

On-Shore: BPO that is contracted inside a company’s country.

Near-Shore: BPO that is contracted to a company’s neighboring country.

Off-Shore: BPO that is contracted outside a company’s country.

BPO is a subset of outsourcing that involves the contracting of the operations and
responsibilities of a specific business process to a third party service provider. BPO
is typically categorized into Back Office Outsourcing, which includes internal
business functions such as human resources or finance and accounting, and Front
Office Outsourcing which includes customer related services such as contact centre
services. Often the businesses processes are information technology based and are
referred to as ITES-BPO where ITES stands for information technology enabled
service. Knowledge Process Outsourcing (KPO) and Legal Process Outsourcing
(LPO) are some of the sub segments of BPO. The global Business Process
Outsourcing (BPO) market has undergone rapid transformation during the last
decade and has been adopted as a strategic business solution by leading companies.
A reduction in telecom costs, coupled with the increased digitization of services, is
helping many companies to off-shore their services.

OBJECTIVES OF BPO:

Traditionally, the main objective of companies outsourcing their business

processes to India was the want of low cost. But now-a-days, companies that
offshore their business processes to India are no longer looking at cost reduction
alone. They typically want to achieve:

 Process improvement and efficiency - faster turnaround and greater

productivity

 Cost savings

 Improved quality - less errors/rework

 Building/strengthening presence in a new market/foreign country

 Increased focus on core competencies - e.g. developing new products or

services

 Building business value and strategic differentiation.