August 22, 2009

The intent behind HR outsourcing!!!

Yesterday, I visited a very impressive HRO company. My interaction with their leadership team and the associates was very exciting.

During one of the scintillating discussions, I learnt a great lesson in reference to HR outsourcing.

The spokesperson from the company said that HR outsourcing is essentially done so that the company can focus more on transformational role of company by outsourcing most of their transactional activities.

I completely endorse that intent behind outsourcing.

However, many HR teams of various companies might feel insecure with the idea of outsourcing incase the HR's role in the company has not evolved properly. They might feel what will they be left doing if many of the HR functions get outsourced??????

Having such a state of standpoit can be alarming which would mean the HR team was not near the strategy discussion table of business till then.

My humble message to such companies is that outsource your HR activities when your company has the competence and confidence to shift it's focus on transformational role.

And have enough subject matter experts in your company who would have complete knowledge of your otsourced operations so that at any crisis situation the outsourced activities can be re-implemented in the company.

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