HR Outsourcing to get more jobs to India?

Interesting article in the ET – however offshore HR outsourcing which is being done is comparatively low end currently in India.

There’s however potential for this work itself to be done cheaper in the level 2 and 3 cities in India – as metros become more and more expensive for doing it.

Most of human resource outsourcing (HRO) contracts coming up for renewal are likely to witness a significant restructuring .This is likely to see more such work being offshored to India.

Everest Group, in a study ‘Human Resources Outsourcing (HRO): End-of-Term Market in HRO’ said the areas of restructuring range from modifying the number and type of in-scope processes, to enhancing delivery models through global sourcing, to introducing alternative pricing models.

According to the research firm, about 75-85 % of engagements will likely be extended while 15-25 % will be repatriated or transferred to new suppliers.

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