hSenid's blog on Outsourcing

The United States Agency for International Affairs, or USAID, has, in a controversial move, decided to fund the development of Sri Lanka’s offshore outsourcing industry.

In a move that was heralded on the US Sri Lanka Embassy website on the 2nd of August, the US government agency USAID in conjunction with the US embassy in Sri Lanka, announced a number of initiatives to be undertaken, one of which is a joint program with different unidentified private business process outsourcing and IT outsourcing companies.

The initiative involves the training of over 3,000 under- and unemployed students on offshore business process support and English language training.

They will then be participating in on-the-job training schemes with private firms. USAID is said to be contributing about $10 million for the project.

With the establishment of Sri Lanka as an IT outsourcing destination, companies can open new centers and expand their business in neighboring country Sri Lanka, rather than in other Indian cities where the cost is higher.

The move is expected to cultivate the country’s potential in the offshore outsourcing IT and BPO space.

Human resources are the most critical assets of any organization as the organization’s success lies in their hands. But in order to ensure that its employees remain satisfied, the company has to have a specialized human resources department that most of times proves to be a costly affaire. That is why most companies today; decide to outsource their human resources management functions to offshore destinations.

What is HR Outsourcing?

HR outsourcing is a process in which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service provides located in various offshore destinations.

Advantages of HR Outsourcing

HR outsourcing including personal outsourcing case studies have indicated that managing human resources involves specialized activities such as training, payroll administration, employee database management, employee retention, employee benefits and a lot more that many companies either don’t have the proper resources or time to manage on their own. By outsourcing their HR functions companies can save huge amounts of money and be free of complications that are otherwise involved in maintaining an internal HR department. By doing so, companies can concentrate on their core competencies saving their valuable time and resources.

To sum it up, human resources outsourcing that includes hr recruiting outsourcing helps cut costs, helps concentrate on core business and most importantly helps in ensuring employee satisfaction.