HR Outsourcing (HRO) & Third Party Payroll Services
HR outsourcing (also known as HRO) is the process of sub-contracting human resources functions to an external supplier.
HR, as a non-profit center, is an obvious candidate for outsourcing. There are many ways in which outsourcing human resources can be done:
- Business process HR outsourcing (also known as BPO), where an external supplier manages discrete HR activities, such as payroll administration or recruitment, or perhaps the whole human resources function(setting up HR department from scratch).
- Shared service HR outsourcing, where only the transaction or administrative elements of HR’s activities are subcontracted to an external supplier. This may include the personal interface with employees.
- Application (and facilities) service HR outsourcing, where external providers look after the technological (and physical) infrastructure to support human resources activities
Reviews of business processes have led many organizations to decide that it makes business sense to sub-contract some or all non-core activities to specialist providers.
Via HRO our core aim is to create greater efficiency within human resources systems. It helps streamline important HR functions such as payroll, benefit administration and compliance management by utilizing advanced human resources technology.
Thus, Human Resource Outsourcing (HRO) is a sustainable and competitive method to manage costs and allow a company's core resources to focus on strategic initiatives rather than managing transactional activities in HR operations. ... Partnering with the external partner for the Human Resource Outsourcing process.
Benefits of manpower outsourcing companies :
Reduces and controls operating cost
Increased focus on core business activities and cost effectiveness
Gains access to world class capabilities
Free internal resources for other purposes
Resources are not available internally
Accelerate re-engineering benefits
Function difficult to manage/out of control
Simplified and reliable records management with timely reporting
Share risks …