A Study on Impact of Outsourcing

HR Services at Reliance BSES

Under the Supervision of

Dr. Samar Raqshin

To the
School of Management
Gautam Buddha University
 Project overview:-
Introduction to the Topic
 Outsourcing is a common practice among both private and
public organizations and is a major element of business
strategy. Many organizations now outsource some of the
functions they used to perform internally previously.
 Due to widespread outsourcing practices, it has then
become an important topic in the literature. Numerous
reasons why outsourcing is initiated have been identified by
researchers.
 Organizations may expect to achieve many different
benefits through successful outsourcing, although there are
significant risks of unsuccessful outsourcing.
 Introduction to the Organization
Reliance BSES
 Reliance BSES - Bombay Suburban Electric Supply (BSES)
formerly known as Reliance Energy.
 Reliance Infrastructure Limited (R-Infra), formerly Reliance
Energy Limited (REL) and Bombay Suburban Electric
Supply (BSES), is an Indian private sector enterprise involved
in power generation, infrastructure, construction and defence. It
is part of the Reliance Anil Dhirubhai Ambani Group.
 Till 2002, the Delhi Vidyut Board (DVB) used to supply
electricity to National Capital Territory of Delhi (NCT) of
Delhi, except areas of Lutyens and Cantonment which were &
are still catered by New Delhi Municipal Council (NDMC)
and Military Engineer Services (MES) respectively.
 Cont…
 The same year in July, DVB was unbundled and was split into 3
distribution companies namely, BSES Rajdhani Power
Limited (BRPL), BSES Yamuna Power Limited (BYPL) & North
Delhi Power Limited (NDPL). Both BRPL and BYPL are 51:49%
joint venture between Reliance Infrastructure and Government of
Delhi. Since then, BRPL supplies electricity to South & West Delhi
covering an area of 750 sq. km. Similarly, BYPL supplies
electricity to Central & East Delhi covering an area of around 200
sq. km.
 Together they account for the distribution of power to 18.79 lakh
consumers. A large portion of Delhi is covered by them.
The BSES is committed to the task of providing quality services to
the districts. Their current project of improving the current state of
infrastructure has caused them to invest more than an amount of
2000 crore.
 Evaluation of BSES Delhi Based on
7’S Model
The 7 S Model provided by McKinsey is a framework for analyzing organizations and their
effectiveness. The basic premise of the model is that an organization is not just a
structure, but actually consists of seven elements.
 Strategy: The company plan or route-map to maintain competitive advantage
 Structure: The company hierarchy
 Systems: The day-to-day processes and procedures throughout the company
 Shared Values: The core values of the company
 Style: The company leadership style
 Staff: The company’s employees and their broad abilities
 Skills: The skills and competencies of employees
The central theme of the model is that the seven elements are interconnected and
interdependent upon one another. In order to achieve business success, each of the seven
elements must be aligned and mutually reinforcing each other. Effecting change using this
model involves the assessment of all areas, simultaneously taking into account their
nature and effect on each other. At BSES, REL has taken a lot of initiative to gel all the 7
aspects together so as to improve the functioning of the company.
Literature Review
 Outsourcing has gained a great imputes during the last some
years. There are many reasons to outsource the goods and
services.
 The concept of Human Resource Outsourcing facilitates a
firm to rivet its attention to core business. It is also used to
minimize the complexities to cope with human resource
activities more precisely.
 Due to widespread outsourcing practices, it has then become
an important topic in the literature. Numerous reasons why
outsourcing is initiated have been identified by researchers.
Organizations may expect to achieve many different benefits
through successful outsourcing, although there are
significant risks of unsuccessful outsourcing.
S.No. Author Title Findings
1. Dr. Manisha Seth International The findings of the paper
and Dr. Deepa Journal on Human implicitly point out that the
Sethi (April Resource decision of HR outsourcing is
2011) Outsourcing contingent upon factors like
flexibility, availability of
adequate resources, affordability,
and
acceptability (openness to
information-sharing) etc. The
paper also suggests a systematic
process and certain pre-requisites
to successfully execute HR
outsourcing.
S.No. Author Title Findings
2. Uttamkumar M. Human Resource This research has addressed the
Kinange, Outsourcing: - issue of HR outsourcing practices
Murugaiah V. A New Mantra for in Karnataka based large and
(2011) Business Sustenance medium sized Information
Technology companies.

Results suggest that the role of the

HR vendors appears to be very
important in the HR outsourcing
decision within this sector. Findings
of this research indicate that
vendors with good reputation (i.e.,
quality of service delivery,
experience with HR outsourcing)
and reliability will be able to meet
companies' HR needs. Thus, the
likelihood of HR outsourcing may
increase.
S.No. Author Title Findings
3. BHARATHI K V , A Study of The reasons for doing so vary
DR.MUNIVENKATAP Human widely when comparing the
PA (July, 2015 ) Resource practices of higher performance
organizations to their less
Outsourcing
successful counterparts. The most
common tasks which companies
outsource including things like
payroll processing, attendance and
time record keeping, and the filing
of and paying of business taxes.
This has an important tool for
company to reduce the burden of
work and outsource the assignment
to others when the work
assignment is above the level and
also the helps in cutting cost of
unwanted employment process for
a specialized people rather than
hiring now days companies are
coming up with this tool.
S.No. Author Title Findings
4. Felix Ndungu Effects of Based on the study findings, the
Kamanga & Outsourcing on researcher recommended that:
Shale Noor Ismail Organizational Organizations should not outsource
(June 2016) Performance an activity fully until they have
confirmed beyond doubt that the
service provider is capable of
handling the activity, Organization
should engage the service provider
on the quality standards which are
expected before entering into the
contract, Organizations should
select the service provider on the
basis of consistent technical and
managerial capabilities, Service
providers should only handle
particular risks which even if they
occurred would not affect the
entire organization performance.
S.No. Author Title Findings

5. Uttamkumar M. Human Resource • The research helps in understanding

Kinange, Outsourcing: the decisions related to HR outsourcing
Murugaiah A New Mantra for and to assess the effectiveness of HR
V(2011) Business outsourcing in Indian IT organizations.
Sustenance • The research gives the clear idea of
what are the future directions with
reference to changing in-house HR
functions and the priorities for HR
Outsourcing.
• This research has addressed the issue
of HR outsourcing practices in
Karnataka based large and medium
sized Information Technology
companies.
• Evidence from this study and other
studies in the outsourcing literature
suggests that HR functions suitable for
outsourcing are those in which quality
and expertise knowledge is required.
Objective of the Study

 To determine the major factors that influences the decision to

outsource HR activities.
Research Methodology
 The process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research,
interviews, surveys and other research techniques, and could include both
present and historical information.
• Type of the Study: The current research is descriptive in its nature. Descriptive
research can be explained as describing something, some phenomenon or any
particular situation. Descriptive researches are those researches that describe
the existing situations instead of interpreting and making judgments. The main
objectives of descriptive research is verification of the developed hypothesis
that reflect the current situation this type of research provides information
about the current scenario and focus on past or present for example quality of
life in a community or customer attitudes towards any marketing activity.
• Sources of Data: The data used to furnish this report have been collected from
the primary sources and secondary sources. Among primary and secondary
sources most of the data have been collected from the secondary sources.
Cont…
 Primary Sources: - Interview of the employees.
 Secondary Sources:
 - Company’s circular and other published papers, documents
and reports.
- Published specifications of different products in websites.
- Methods of Data Collection: - For data collection -
Questionnaire was prepared and was given among few of the
employees of RELIANCE BSES through questionnaire.
 Sampling Method:
 Target population –
 Sample size –
 PERCENTAGE ANALYSIS - Percentage = (No. Of
respondents / total no. Of respondents)*100