The paper “ Outsourcing in India and How Human Resource Management Can Help Combat Present Challenges” is an exciting variant of a case study. Traditionally, the human resource management practice in an organization was not much valued as other organizational resources such as equipment, material, capital, and financial resources. However, in the recent past, more and more businesses are investing in promoting effective and efficient human resource management schemes. This is because, there is a realization that human resources are the most regular, reliable and valuable resource to an organization (Armstrong, 2006).
An organization may have the best-laid goals and objectives, have a substantial amount of capital and financial backup but with disjointed human resources, all these will amount to nothing. Human resource management in an organization entails planning, applying, taking control of the selecting, hiring and training of the employees and managing the organization's growth efforts. The main purpose of human resource management is to increase productivity by making the employees utilize their best potential and skills optimally, develop the personal and professional lives of the labor force and rewarding and appreciating good performance by complying with applicable labor laws (Lawler, et al. , 2009).
By so doing, employees feel appreciated, empowered, satisfies, motivated, and thereby, strive to achieve the set organizational goals, objectives, and those of their own. As per the case study on the evolution of outsourcing, human resource management is fundamental in not only selecting and hiring efficient and competent workers but also in developing them through regular training and encouraging employee participation in decision-making and problem-solving processes. This, as indicated in the case study, has been lacking in call centers in Bangalore India.
Despite the availability of skilled, experienced, and knowledgeable workforces, there has been massive staff turnover. This report seeks to in-depth analyze the functions of HRM in making outsourcing practice a success in India. OutsourcingAs business and market situations, erratically change due to industrial, legal, economic, ecological, social, and political factors, more and more profit, and non-profit making businesses are outsourcing business to be able to survive hard fiscal, economic, and uncertain times in the modern world. Outsourcing deals with an organization signing a contract with a third party to deliver business functions (Halvey & Melby, 2007).
Business functions outsourced are finance, human resource, communication, and customer care service, legal functions, accounting, and information technology among others (Brown, & Wilson, 2005). The practice offers a resolution of current business and market challenges in competitive market environments. Offshore outsourcing refers to when a business company from oversea nation outsource products and services whilst nearshore outsourcing is outsourcing services and products in a bordering region (Duening, 2005). Outsourcing helps in reducing costs associated with hiring processes, minimizing and safeguarding against possible threats and it is beneficial for business organizations that seek to establish change and innovation of its products and services (Halvey & Melby, 2007). Outsourcing in India and how human resource management, can help combat present challengesIf outsourcing is so beneficial, why is there an increased staff turnover in India?
One would ask. Despite the rich availability of learned workforces to employ in call centers, the turnover is, estimated to be 40-100% in India compared to the low 20% turnover in Western economies. According to Thite and Rusell's study, inadequate career paths, unchallenging occupation, monotony, inappropriate working hours, and controlling and micro-managing management practices are associated with high employee turnover.
These areas surprisingly fall under the functions of human resource management.