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BPO in Human Resources Services
Payroll processing is the oldest IT-based outsourced service. Until recently, however, the rest of the human resources (HR) function remained firmly embedded in house. In 1999, outsourcing caught up with HR in a big way as pioneers such as BP Amoco, Bank of America, British Telecom, and BAE Systems began to hand it over wholesale to external providers.
Outsourcing human resources lightens organizations' burdens by helping them screen, choose, and manage employees. What you should look for in outsourcing human resources is a company that has in-depth knowledge of country-specific human resource practices, rules, and regulations, as well as excellent communication and analytical skills.
The possible reasons for outsourcing HR include:
- The HR department wants to redefine its role by shedding administration and concentrating on human capital management and alignment with business strategy.
- CEOs and CFOs are increasingly unhappy with the HR function. They want detailed analytics, which can inform their operating strategy.
- The cost of largely paper-based, in-house systems is exorbitant.
The following short articles should give you a better understanding of what is happening in HR outsourcing.
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