BUSINESS PROCESS outsourcing is one of the next big things in information technology, and companies are increasingly inclined to turn over some of their back-office functions, such as finance, human resources, marketing and communications, to outside vendors.
These functions are critical to the efficient running of any business, and outsourcing them can help improve their delivery because service providers are able to benchmark their processes against other clients. Outsourcing can also help reduce costs.
IPL Research managing consultant Vinton Lam Man-wah said HR functions, in particular, were easily outsourced and companies were increasingly taking this option, driven by a need for more efficient, cost-effective and coherent HR processes and by a growing emphasis on the strategic role of HR.
'Most companies do not want to employ many more HR staff but they have to find a way to improve efficiency in the HR department and one way is to acquire a better system to help them with their daily operations, so that they can [concentrate] more on the strategic focus of the company,' he said.
HR outsourcing ranges from specific processes, such as payroll administration, to comprehensive solutions that cover HR functions from benefits administration to training, recruitment and severance.
The most sophisticated technology on the market deals with the entire placement cycle, from recording client, candidate and vacancy details, through to searching, matching, letter generation and e-mail submission, and then placements and follow-up requirements.
