Why HR Outsourcing?

• Enhance effectiveness by focusing on what you do best
• Increase flexibility to meet changing business conditions, demand for products and services and technologies
• Transform the organization
• Increase product and service value, customer satisfaction, and shareholder’s value

Performance driven:

• Improve operating performance
• Obtain expertise, skills, and technologies that would not otherwise be available
• Improve management and control
• Improve risk management
• Acquire innovative ideas
• Improve credibility and image by associating with superior providers

Financial driven:

• Reduce investments in assets and free up these resources for other purposes
• Generate cash by transferring assets to the provider

Revenue-driven reasons

• Gain market access and business opportunities through the provider’s network
• Accelerate expansion by tapping into the provider’s developed capacity, processes, and systems
• Expand sales and production capacity during periods when such expansion could not be financed
• Commercially exploit the existing skills

Cost-Driven reasons

• Reduce costs through superior provider performance and the provider’s lower cost structure
• Turn fixed costs into variable costs

Employee-driven reasons

• Give employees a stronger career path
• Increase commitment and energy in non core areas

What should you do ?

• Have a clear vision of what outsourcing should achieve
• Understand the scope of the services to be outsourced
• Outsource the performance of a function, not the responsibility for it.

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