Thinking of outsourcing web solution?

With borders disappearing and global trade becoming a norm, Outsourcing is a logical extension of moving to a 'One World' scenario. Outsourcing can be defined as transferring work, that would usually be done by an in-house team to another team which is not under the same umbrella. When this team is based in another country it is usually referred to as 'Offshoring'. Wonder what it is called for countries that are landlocked though!

Web Designing and Development as a professional service has been around for well over a decade now and outsourcing of the service is fairly new (say, not more than 4-5 years). There are several countries such as India, Brazil, Philippines, Russia and Romania which are increasingly being considered as the outsourcing hubs for the service. India, undoubtedly being the leader. The main reasons for concentration of service providers across India include a few of the following -

1. Easy availability of trained and experienced Creative and Technical resources.

2. Cheaper costs and overheads and thus reduced costs of services. Costs savings over up to 300% can be achieved in cases.

3. English being taught as a Primary Language right from age 3

4. Minimal cultural differences for being on the same understanding Platform.

These of course are some of the basic reasons of why outsourcing has taken front seat across a wide spectrum of services.

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HR outsourcing basics

Companies and businesses that either lack time, expertise, or both, often outsource human resource tasks to an outside company. In the past, small businesses did not have the opportunity to outsource functions such as HR, as the market was lacking in options to do so. However, a comprehensive range of HR services are available these days to cater to companies of all sizes, including those with up to 75 employees. Human resources management is one of the most widely outsourced businesses in the market.

Until recently, companies used to outsource only payroll and benefits administration to other companies. However, it is a relatively new phenomenon to outsource practically all HR activities like business processes and employee management. HR business process outsourcing has grown immensely over the years. Recruitment outsourcing can perform all the recruitment functions like the assessment of departmental needs and placement of employees in appropriate departments.

Human resource outsourcing has become increasingly popular, especially for employee data organization and payroll calculation. However, many organizations prefer to handle recruitments and termination of employees locally. An external organization handling it may not understand the internal requirements of the company.

Outsourcing saves a lot of money as many service providers are able and willing to perform the tasks at low costs. Outsourcing enables companies to concentrate on their focal functional areas. However, the main disadvantage with outsourcing human resource functions is that there is no personal contact between the employees and the human resource department. This means that the personnel problems of employees cannot be easily addressed or communicated. Occasionally, outsourcing may also pose a security threat in terms of breach of sensitive employee information.

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