HR Outsourcing
Human Resource Outsourcing (HRO) is enjoying healthy growth, because buyers are reaping significant benefits. HRO has long been the vanguard of Business Process Outsourcing (BPO) and is by far the most outsourced business process. Estimates of industry growth vary but seem to average a healthy compound annual growth rate. Suppliers involved in different areas of specialization are experiencing a double-digit growth too.
Offshore outsourcing is a major trend driving Human Resource Outsourcing. Offshore HRO concentrates on processing services that involve manual operations with little added value such as generation of employment contracts. India, Philippines, China, South America and Eastern Europe are the leading regions for offshore outsourcing.
While HRO has come a long way, there are several areas in which improvements are still possible. Michel Janssen, President, Supplier Solutions Practice, Everest Group is of the opinion that, no supplier has come up yet with a standard way of doing HR processes that is common around the world. Though the suppliers may have global scope, infrastructure, and personnel, they still lack advanced expertise in specific areas, like benefits for different countries.
Human resource outsourcing has come a long way, but there’s still a long way to go.
Jesmine
Tuesday, April 27, 2004
Saturday, April 24, 2004
India- Dealing with the Labour Crunch
Despite the fact that hiring and retaining software engineers at salaries considered to be reasonable, for Indian IT outsourcing service providers, has become difficult, multinational companies are still keen on outsourcing to the same. Large multinational technology services companies like Acenture Ltd., Electronic Data Systems Corp and IBM Global Services are hiring staff by thousands in India, and are blamed by Indian service providers for pushing up salaries. According to Laxman Badiga, chief executive for staffing at Wipro Ltd.," These big companies are willing to give 30 to 40 percent hikes in salaries".
While large Indian outsourcing companies and multinationals with strong brand names will hardly face any difficulty in hiring and retaining staff, the smaller Indian companies are likely to be hit. India's IT service exports are forecast to grow to US$ 28 billion by 2009, according to a joint study by KPMG Advisory Services Private Limited and the Delhi, India based National Association of Software and Service Companies (NASSCOM). Therefore, the overall scenario for hiring IT professionals could get even more difficult.
Nevertheless, India is not going to get undercut by cheaper prices from service providers elsewhere, according to industry sources. Software development staff in India still costs one fourth of what it is in the US, according to Triology's Kommi. As the supply of experienced software engineers gets tighter, companies are increasing recruitments from the campus. Wipro currently hires about 35 percent of its new staff from the campus. The real advantage of recruitment from the campus is that they are able to fit better culturally with a company and identify with its values.
A company's ability to hire quality IT staff also depends on its location. Cognizant Technology Solutions Corporation, a New Jersey based IT services firm has its main Indian operation in Chennai in Tamil Nadu, as there are a large number of top notch engineering colleges.
Jesmine
Despite the fact that hiring and retaining software engineers at salaries considered to be reasonable, for Indian IT outsourcing service providers, has become difficult, multinational companies are still keen on outsourcing to the same. Large multinational technology services companies like Acenture Ltd., Electronic Data Systems Corp and IBM Global Services are hiring staff by thousands in India, and are blamed by Indian service providers for pushing up salaries. According to Laxman Badiga, chief executive for staffing at Wipro Ltd.," These big companies are willing to give 30 to 40 percent hikes in salaries".
While large Indian outsourcing companies and multinationals with strong brand names will hardly face any difficulty in hiring and retaining staff, the smaller Indian companies are likely to be hit. India's IT service exports are forecast to grow to US$ 28 billion by 2009, according to a joint study by KPMG Advisory Services Private Limited and the Delhi, India based National Association of Software and Service Companies (NASSCOM). Therefore, the overall scenario for hiring IT professionals could get even more difficult.
Nevertheless, India is not going to get undercut by cheaper prices from service providers elsewhere, according to industry sources. Software development staff in India still costs one fourth of what it is in the US, according to Triology's Kommi. As the supply of experienced software engineers gets tighter, companies are increasing recruitments from the campus. Wipro currently hires about 35 percent of its new staff from the campus. The real advantage of recruitment from the campus is that they are able to fit better culturally with a company and identify with its values.
A company's ability to hire quality IT staff also depends on its location. Cognizant Technology Solutions Corporation, a New Jersey based IT services firm has its main Indian operation in Chennai in Tamil Nadu, as there are a large number of top notch engineering colleges.
Jesmine
Wednesday, April 21, 2004
The Global Offshore Outsourcing Summit
The Indo American Chamber of Commerce is organizing The Global Offshore Outsourcing Summit, which begins on April 21st in Grand Hyatt, Mumbai The two day summit will serve as the ideal meeting ground for all audiences with a stake in the outsourcing space and will create a perfect environment for both in-depth learning and conducting of business. An increasing number of companies who are interested in the outsourcing route are exploring how to transform the India outsourcing advantage into a reality for their business. The summit will be an excellent opportunity to meet and network with the who’s who of the outsourcing world.
The Global Offshore Outsourcing Summit is an opportunity to see, first hand and on the ground, how outsourcing has been a smart decision for businesses and in turn their customers, shareholders and the community as a whole. The summit will provide a platform for deeper understanding of the latest developments in outsourcing and to help establish an effective India based strategy for outsourcing.
It can be considered to be a launch pad for exploring and taking first steps towards establishing new outsourcing relationships. Currently, India being well established as the leading offshore destination for business process outsourcing with many of the world’s leading organizations, has earned the reputation of being the best, as it pays rich dividends and results in increased productivity and improved quality.
Jesmine
The Indo American Chamber of Commerce is organizing The Global Offshore Outsourcing Summit, which begins on April 21st in Grand Hyatt, Mumbai The two day summit will serve as the ideal meeting ground for all audiences with a stake in the outsourcing space and will create a perfect environment for both in-depth learning and conducting of business. An increasing number of companies who are interested in the outsourcing route are exploring how to transform the India outsourcing advantage into a reality for their business. The summit will be an excellent opportunity to meet and network with the who’s who of the outsourcing world.
The Global Offshore Outsourcing Summit is an opportunity to see, first hand and on the ground, how outsourcing has been a smart decision for businesses and in turn their customers, shareholders and the community as a whole. The summit will provide a platform for deeper understanding of the latest developments in outsourcing and to help establish an effective India based strategy for outsourcing.
It can be considered to be a launch pad for exploring and taking first steps towards establishing new outsourcing relationships. Currently, India being well established as the leading offshore destination for business process outsourcing with many of the world’s leading organizations, has earned the reputation of being the best, as it pays rich dividends and results in increased productivity and improved quality.
Jesmine
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