Human Resource Outsourcing: A New Mantra for Business Sustenance

Topics: Outsourcing, Human resources, Management Pages: 6 (2735 words) Published: May 9, 2014
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Procedia - Social and Behavioral Sciences 25 (2011) 227 – 232

International Conference on Asia Pacific Business Innovation & Technology Management

Human Resource Outsourcing: A New Mantra for Business
Uttamkumar M. Kinange, Murugaiah V
, A.S.P. College of Commerce, M.B.A. Programme, Bijapur-586103.Karnataka, India. Board of Studies. Kuvempu University. Davangere, India

During 6000 BC, it was the 16th day of the great “kurukshetra war. Late in the night, Radheya went to Duryodhana’s tent and said: “I am superior to Arjuna, but I have no good charioteer. If I have Salya as my charioteer, I am sure to win the war. But you have to coax Salya to offer his services. Embracing his friend Radheya, Duryodhana said: I will coax Salya to do this, go and rest in peace. Talent was in short supply even in those days. And Duryodhana had no option but to outsource it for the day. Outsourcing itself is not a new concept as organizations have for years contracted with external suppliers to provide an array of services. A number of studies indicate outsourcing is growing with respect to both the number of companies outsourcing and the number of functions outsourced. Attracting, retaining and developing workforce, and keeping abreast of the latest technology can prove difficult and costly for many organizations. Almost all businesses can benefit from some kind of outsourcing. But, the challenge is to decide which HR function to outsource and which to retain. Further the need for employment information and expertise service at low costs extended by vendors has given rise to HR outsourcing. While the existiong studies provide some insights regarding the trend and practice of HR outsourcing, they do not explore HR outsourcing practices in depth. There is little research on HR outsourcing practices in Indian organizations and very little is known about organizations’ experience with outsourcing HR. The purpose of this paper is to contribute to the knowledge of HR outsourcing practices in large and medium sized Indian IT companies located in the state of Karnataka. This paper will focus on analyzing: Emerging trends in HRO Management in IT sector,Priorities in identifying Core and Non-Core HR activities for HRO (list of 42 HR activities),HRO decisions in IT Industry, Need for developing new competencies and skills for in-house HR professionals

It is clear that in spite of the needs expressed by several authorities and researchers, there is no empirical study covering the decision making on HRO and different issues and considerations of HR Outsourcing in IT organizations. The present paper is an effort to fill the above stated gap. The research helps in understanding the decisions related to HR outsourcing and to assess the effectiveness of HR outsourcing in Indian IT organizations.This is a descriptive research. The method used is field research. The data collection is done primarily using questionnaire. The paper is outcome of the study conducted for 114 senior professionals (primary data) from Large and Medium IT companies located in the state of Karnataka. 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.

© 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the Pacific © 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the AsiaAsia Business Innovation and Technology Management Society (APBITM).” Keywords: HR Outsourcing, Vendor, Information Technology, Core and non-core functions.

* Corresponding author. Tel: +91-9886666965 address: Email:

1877-0428 © 2011 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of the Asia Pacific Business Innovation and Technology Management Society


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