Dissertation

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• Criterion for judging the Vendors’

Performance
• Do organization outsource more than one
activity
• Having Multiple Vendor is seen as
• Problems Associated with clients
• Risks associated with Outsourcing HR Activities
• Metrics used for judging the effectiveness of HRO
• Lessons learnt by the Clients
Comparative Analysis
4
3.8
3.6
3.4
3.2
3
2.8
2.6
2.4 Mean(NDPL)
Mean(PG)
2.2 Mean(BSES)
2 Mean(NTPC)
s ed n ce r ts s s
son rc tio an do en g HR n es ent
n i i
Re
a u le ec m Ve Cl
cin ve C l
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Ou or e tip w so ff e
nt
es en
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P ul ted out orE ear
v iti r v d M
cia th s f s l
n
Ac
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fo Ve sso wi r ice son
d t s
rio sA te e Le
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Cr ob ss
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Findings and Conclusions
The basic reasons hampering the growth of HR outsourcing in India are confidentiality and
cost factors. Many companies outsource only a bit of their requirements because of the
above two factors.

The major reasons why some companies don’t outsource are Loss of Control over the
processes, Conflict among the Employees, Employee Unhappiness, and Financial
Resources.

The companies that undergo the process of outsourcing are only large cap industries.
Examining the growing trend of HR Outsourcing it is likely to be a part of small n midcap
industries in near future.

The main reason why HR activities are outsourced in the large cap organizations is
because they want to concentrate over the strategic needs of the business.

There are also issues in terms of pricing of outsourcing HR services. There are no standard
benchmarks available so pricing varies a lot from vendor to vendor for similar services.
Recommendations and Suggestions

There are various organizations that don’t even know about HR Outsourcing. Such
organizations should make an attempt towards understanding the need and benefits
of the concept.

Outsourcing not only helps in reducing costs but it also helps in shifting the focus
towards the strategic needs of business.

When it comes to choosing of vendors, the organization should see the capabilities
the vendor in the related field. Hiring of two or more vendors will not add to cost but
will help in gaining expertise and improving of service quality

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