Slide 1- HR outsourcing is a contractual agreement between an employer and an

external third-party provider whereby the employer transfers the management of,
and responsibility for certain HR functions to the external provider.
it can affect a wide range of jobs, from customer support to manufacturing to the
back office. Outsourcing was first recognised as a business strategy in 1989 and
became an integral part of business economics throughout the 1990s.

Slide 2-
● Companies use outsourcing to cut labour costs, including salaries for their
personnel, overhead, equipment, and technology.
● Outsourcing is also used by companies to dial down and focus on the core
aspects of the business, spinning off the less critical operations to outside
organisations.
● Can avoid having to spend time on worker management. e.g. if you’re cleaner goes
on maternity leave, it’s not your responsibility to find an alternative worker.
● Improvements in Technology and Transport. Improvements in the internet and
communications mean it is easier to outsource and keep control of what is
happening.

Slide 3- Even Google’s top-notch team of 89,000+ in-house employees don’t have all
the answers all of the time. As Bloomberg reports, 2018 marked the first year
Google’s contract workers outnumbered their direct employees. Google uses temps,
vendors, and contractors for two main reasons. First, it allows them to engage
workers with expertise they don’t have in-house. Google’s contractors help the tech
giant to remain highly profitable year over year. For example, Google’s advertising
service, AdWords, employs a high concentration of contractors. AdWords was
responsible for the lion’s share of the company’s $110.8B in revenue for 2017.

Microsoft’s 131,000+ in-house employees are supplemented by a massive workforce

of contract workers. Though contractor headcount has fluctuated over the years, it’s
estimated the company has as many contractors as direct employees. The majority of
Microsoft’s contractors are managed under “outsourced arrangements.” These
arrangements are governed by SOWs that include defined deliverables, processes,
and service-level agreements. In other words, outsourcing suppliers are responsible
for managing the day-to-day work of Microsoft’s contract workers. This brings peace
of mind to Microsoft employees while reducing their daily load.

Slide4- The outsourcing industry in India is one of the most sought-after by the
world’s biggest brands. Outsourcing to India was initially a step undertaken solely to
reduce costs. Now, the competitive landscape, agility and innovation, and availability
of skilled talent are important factors that compel businesses to choose outsourcing
in India over other countries.
The 2021 Global Services Location Index (GSLI) overall country rankings indicate
that, at a regional level, Asia continues to dominate the index. India, China,
Malaysia, and Indonesia hold the first four spots in the global services value chain
again this year.
India is an undisputed leader in the outsourcing industry. It offers a wide range of
English-speaking skilled labor that no other low-cost countries can match. According
to A.T. Kearney, India hosts more than 1,140 global in-house captive centers,
which allow almost half of the top 500 global companies to work in India.

4 Most Commonly Outsourced Services in India

Information Technology (IT Services)
Knowledge Process Outsourcing (KPO)
● Financial and Investment Research
● Research and Development
● Data Analysis and Interpretation

Back-office Support
Customer Support Services

Slide5- read through

Slide6- Human resource outsourcing
Software-as-a-service (SAAS) is a software licensing and delivery model in which
software applications are hosted remotely by a vendor or service provider and made
available to customers via a Web browser.(e.g., applicant tracking and
training/performance)

in a business-process outsourcing (BPO) arrangement, an employer contracts a

single business task, such as payroll, to a third-party service provider. This contrasts
with SAAS outsourcing in that the BPO provider is providing the service as well as
the software.

Under this outsourcing arrangement, also called single sourcing, HR professionals

access one solution to meet their needs, from welcoming new hires to managing
turnover, and all the tracking in between; a single supplier covers the full employee
life cycle.

These terms refer to consolidation of a business function within an enterprise to a

highly skilled internal department or group. Shared services may also be provided to
third parties. When the services offered by the shared services team are combined
into a central operation, they are often referred to as shared-services centers.

A professional employer organization, or PEO, is an organization that provides—via

a co-employer relationship or employee leasing arrangement—HR management and
benefits to an employers' employees.
Employment responsibilities are typically shared between the PEO and the
employer; the employer retains management control over the work performed by the
employees, whereas the PEO assumes co-responsibility for benefits, taxes and
payroll.

Slide 9-
● Standards may be different. E.g. People have said that the English of
Indian call centres is more difficult to understand.
● The firm may struggle if the outsourced firm is unreliable.
● Potentially higher costs as the firm will require a profit margin to make it
more worthwhile. It may be cheaper to employ cleaners directly.
● Impact on reputation. Sometimes multinationals have been criticised for
outsourcing production, such as call centres to countries outside the
country where it does business.

Slide 9- While outsourcing can benefit a company that prioritises time over money,
there are significant drawbacks if the company needs to retain control. Outsourcing
the production of a basic item like clothing carries far less risk than outsourcing the
production of something complicated like rocket fuel or financial modelling.
Businesses considering outsourcing must carefully weigh the advantages and
dangers before proceeding.