When we talk about HR business process outsourcing (HR-BPO) it seems strange because at a first view we are linking two different terms: BPO (business process outsourcing) and HR (human resources). Business Process Outsourcing basically refers to a strategy that someone uses in order to outsource an entire business process to a third party company. For instance, we can outsource the building of screws that will later be used by us to create a car. The car manufacturer needs the screws but he gains time if someone else does them and he only mounts them. We are basically using an automatic process that aids us in gaining time and profit.
When talking about HR business process outsourcing we are basically referring to a business strategy that includes the outsourcing of both some processes and human resources functions from a different company. Nowadays we can say that a lot of companies are actually doing this and the results are not to be neglected. We see a constant raise in business and experts agree that efficiency can be increased if we use HR outsourcing at the same time as BPO.
Why is HR Business Process Outsourcing Popular?
In most cases a company will start with business process outsourcing and only after some time it will implement human resources outsourcing. The main reason why this happens is an increase in efficiency. To put it simple, we are outsourcing an entire process and gain time and money. As our business grows we will want to outsource processes even more. In this case we might end up with human resources problems as growth is usually faster than we can picture and we might end up with less human resources than we need. In this case instead of hiring locally we can go towards HR outsourcing that is linked with the business process outsourcing we already did. We are thus assured that work will go on properly.
To make everything more appealing, HR outsourcing is done in a connection with a company that specializes in human resources. We need to deal with specialists. We want to hire professionals to take care of the process we outsourced and to take care of human resources. This immediately increases results and improves working environment. The only real problem that appears is the fact that some companies fail to use the HR outsourcing right. The start of this failure appears when there is no outsourcing strategy built or it is faulty. A little research and an investment to learn how to properly outsource can generate constant increases while reducing risk.