About HR Outsourcing – Advantages and Disadvantages of Basic Needs for HR Outsourcing

2019-05-17 Business No comment

Today, many Indian and overseas companies are aware of the importance of outsourcing. Outsourcing means subcontracting third-party companies to complete tasks or designated projects. When companies need to complete the task of not wanting to hire new employees, they need to be outsourced. Outsourcing is one of the most effective ways to save costs. Currently, many information technology [IT] companies and call centers rely on outsourcing.

Human outsourcing concept

In outsourcing, an external company or company conducts product management or development on behalf of another company. This concept begins with the company's relationship with hiring new employees for short-term work. Hiring new employees means more HR work, security checks and other administrative expenses, which is not worthwhile for a small project. Manpower outsourcing solves this problem because in this case, major companies do not directly hire workers. An external company that supplies skilled workers is called a human outsourcing company. The lack of skilled workers is another situation that requires manpower outsourcing. Many IT companies sometimes need people who are proficient in a particular technology, or they may not own these technologies in their resource pool. In this case, they can hire skilled professionals, also called consultants, to complete their tasks.

Human outsourcing program

Once the company decides to outsource, they will find the right supplier and request a proposal [RFP]. Sometimes RFPs from multiple vendors are requested. In the RFP, the supplier is responsible for the processes required to complete the project, the company's current financial situation, the technical capabilities of the employees, and all the information that can help gain confidence in the company. The company then negotiates with the company and decides on their "best and final offer" [BAFO]. The parties finalized the contract and signed it. The next step is to move knowledge and information from the source company to the company that provides the manpower. Determine the delivery schedule to deliver the product. After the project is completed, the source company may decide to terminate the contract or renew the contract.

Why outsourcing

Some of the benefits of outsourcing are as follows:

o First, by far the most important aspect is to reduce the cost of overall project development.

o The recruitment strength of outsourcing companies with outstanding and knowledgeable professionals in the field can improve product quality.

o Reduce the pressure on HR departments to hire and maintain skilled professionals.

o Companies can pay more attention to product design and research, rather than trying to meet deadlines.

Disadvantages In addition to the benefits, people have also seen some shortcomings of outsourcing. Some disadvantages of outsourcing are:

o Labor outsourcing can affect a company's employees or employees. Sometimes the company cuts the company's work and outsources it to third parties.

o In most cases, outsourcing companies are unable to meet standards and timelines.

o There are also issues related to fraud and security, as there is always the possibility of identity theft or misuse of sensitive information.


Today's companies compete to maintain their customers while providing quality service. The only way they can survive is to reduce operating costs. IT is one of the best and most effective ways to reduce project development costs.

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