HR Outsourcing



HR outsourcing key reasons

Executives today have to increase productivity, improve service, deliver solid business results, increase shareholder value and ensure that the company is adapting to ever-changing business conditions. And success on all those fronts depends on the organization’s most important asset; “PEOPLE”. People are increasingly being recognized as one of the key sources to sustain the competitive advantage of an organization.

Executives at leading organizations expect the human resources function to make a fundamental shift from the role of a mere administrative ‘doer’ to the ‘Strategic Business Partner‘ proactively enhancing the company’s ability to add value, reduce cost and attract, develop and retain superior performers, and keep them focused on organization goals.

Unfortunately, the transition process has been confronted with many challenges spanning across Structure, People, Process, and Technology resulting in enormous upfront costs required to establish a comprehensive internal HR function.

Along with this challenge, the concept of HR outsourcing has been introduced as an efficient solution to bridge the mounting gap and to meet the organizations requirements in an economic yet professional manner.

HR outsourcing has proven to be an effective approach helping organizations leverage technology and expertise to draw value of their non-strategic functions while keeping away from large capital commitments.

Large Organizations & Conglomerates:

  • HR service delivery costs are high and cannot be managed down.
  • Continuing investment in technology (i.e. capital expenditures required to install, upgrade and maintain HR systems) is no longer feasible.
  • Strong desire to:
    • 1.Relief management from administrative burdens and focus on strategic work
    • 2. Improve quality of HR services through process redesign and access to self-service platforms
    • 3.Allow HR to focus on core competencies while having access to subject-matter experts
    • 4. Encourage better employee services, leading to improved employee satisfaction and consequently, overall performance.
  • Cut costs of non-strategic activities and reduce internal administrative effort
  • Cut costs on training and on staying up-to-date on non-core business activities
  • Enable decision making that is independent of employee factions and loyalties
  • Share risk with the outsource partner & ensure legal compliance and avoid penalties
  • Manage transformation or change easily in case of a spin-offs, merger or acquisitions

Small and Medium Size Organizations

  • Internal resources not available; Need for expertise in areas such as organization development, recruitment & selection, talent management, compensation & benefits, and employee relations
  • Desire to focus efforts on core activities and get flexibility
  • Desire to have access to a talented pool and subject-matter experts
  • Reduction of structure weight
  • HR functions are not fully developed; Quality of HR services offered are to be enhanced
  • Management wishes to free themselves for other purposes; More energy focused on strategic aspects
  • Capital expenditures are not allocated to install, upgrade and maintain HR systems
  • Desire to have access to Best Practice and Benchmarked data enabling management to make smart decisions
  • Ensure legal compliance and avoid penalties

Our Relationship Model

The decision to consider a full/partial outsource model depends on a number of factors including the organizational strategy, the organizational size, location and complexity, the stage in the organizational life cycle, other strategic factors. We use specific tools and techniques to help our partners answer the strategic question of What to Outsource?

We conduct a thorough assessment of the company’s existing systems, identify gaps, understand the specifics of your organization and what you hope to achieve with outsourcing, then we help you establish long term and short term strategic goals for outsourcing that will form an integral part of your strategic agenda.

  • The approach MSC adopts in providing its services relies on establishing partnership with clients, in-depth assessment of needs, thorough analysis and design of value adding effective solutions. MSC approach assures strict confidentiality of client data, employee privacy and business transactions
  • MSC outsourcing solution can help executives make better informed decisions, open up new sources of revenue, and free them from the day-to-day back office tasks to focus on core competencies.
  • MSC adopts its unique approach that helps organizations realize the best out of outsourcing solution. Our recommendations are based on our thorough understanding of our partner’s strategic directions, business needs and operational challenges. First, we help our clients decide whether to outsource or not, what to outsource, when and how to outsource. MSC is keen to truly understand the psyche of its client companies to provide perfect solution that will meet and exceed their expectations.
  • Our tailored solutions enable our partners to outsource part of or the entire set of non-strategic functions of the HR Department, such as Compensation and Benefits, Payroll Administration, Manpower Planning, Recruitment & Selection, Training/Career Development and Succession Planning Systems as well as compliance with prevalent bylaws, alternatively our expertise may be used to set up and support the implementation and maintenance of consistent and standardized HR practices across the organization.
  • Whichever combination meets your outsourcing and business strategy, you can be confident that you have the quality, process, and technology to manage your complex HR challenges. Where continuity is critical, we establish long-term healthy relationships with our partners.