A step in the direction towards achieving and sustaining a leadership position is to effectively manage “people assets” and streamline “non-strategic HR activities”. This allows HR management to focus their resources on innovation, risk-mitigation and strategy.

HRO enables HR to become the required strategic partners in their organisation.

Organisations – small or large, locally or globally– are facing inordinate pressure to survive in today’s turbulent economic conditions. There is a constant challenge to stay ahead of competition by delivering higher quality and output with stretched economic resources.

Essential to overcome this challenge, is the efficient use of their most important investment – “human capital”! Successful organisations are ones that can flexibly leverage and manage their “human capital” and keep them happy at the same time.

HR has been traditionally viewed as a support function largely centred around routine administratvive work. Furthermore, there has been minimal responsibility towards the realm of “human capital” management.

Today, as “human capital” becomes pivotal to Business Success, organisations are seeking stronger alignment between HR and corporate strategy. As a result, company’s CXOs have started giving top priority to Human Capital – talent management, employee satisfaction, increased productivity and most importantly employee retention - giving HR functions a more strategic responsibility.

A skilled talent pool has become a competitive differentiator making it crucial for HR to hire, manage and retain top talent. However, due to the traditional role of HR, HR Heads lack the time and resources to to manage a strategic role as they get more involved in routine operational tasks.

In the wake of this changing Business Model, HRO has become more of a necessity than a luxury. HRO steps in as a strategic move allowing top HR Management to free up internal resources from transactional activities and focus on strategic HR goals and objectives.

An optimal level of HR can be achieved through HRO only when non-core HR activities are outsourced while effectively performing core strategic activities within the organisation. At this optimum solution, HRO offers the benefits of streamlining processes, reducing costs, and improving efficiency and productivity of Human Capital.

Benefits of HRO

Human Resource Outsourcing (HRO) enables businesses to –

Streamline Processes		Outsource transactional ‘non-core’ processes to third-party HRO experts without losing control over core functions
Reduce Costs & Improve Efficiencies		Reduce operating and transactional overheads by standardizing and automating key processes Reduce workforce costs by rationalizing HR teams through business processes outsourcing Reduce attrition rates by identifying and managing talent more effectively Trim non-productive time and resources through streamlined processes
Hire and retain critical talent		Relieve internal resources by outsourcing this time-consuming yet crucial function to Search experts
Focus on Core Business & Strategy		HRO is shaping the trend for HR in modern organisations. HR is now expected to be a strategic partner that adds business value. HRO allows you to outsource transactional activities and free up resources to focus on core strategy and objectives

"Any analysis of capital structure should recognize that most balance sheets are dramatically inaccurate because (with the exception of professional sports franchises) they fail to include the value of human capital."