The evolution of managed HR services

Updated: Mar 27 2006, 05:30am hrs
This is the era of managed services as companies seeks to focus on its core competencies and leaves other functions to the expertise of partner organisations. These services could range from procurement and administration of talent to managed IT services to security management and many others. Managed HR services is a proven way of optimising workforce efficiency and reducing staffing costs. Still an emerging trend in India, it ranges from payroll processing to recruitment to help desk functions and other operations, with managed service providers (MSPs) becoming an extension of the internal HR team.

The ever-increasing challenges of recruitment has led to the necessity of managed HR services. Sadhana Somshekar, director and chief marketing officer, Focus Infotech, states, Outsourcing or harnessing extended HR services through services providers external to core HR, help address some of the baseline challenges with regard to new recruitment, talent search, scheduling of interviews, coordination with the panelists and the prospective employees, follow-up, background checks, feedback, etc, etc. Pointing out that the HR team size tototal head count ratio is something that no amount of mathematics can justify and the HRD being effectively a cost centre for the organisation, the only route to meeting objectives is through team effort, partnering with able extended HR arms external to the core HR.

Ajay Mallapurkar, centre head, Mafoi Management Consultants in Mumbai, points out, A very significant amount of operational HR (like payroll, joining formalities, statutory management, etc) is transaction heavy and it makes sense for organisations to outsource these activities.

There is of course a long list of benefits for an organisation. The partnership could be with one or more managed services providers (MSPs). C V Prakash, head of human capital, Team Computers, lists how managed services helps HR deal efficiently with the following:

high attrition rate vreplacement hiring, induction cost

training costs

continuity/availability of services (no leave replacement available otherwise)

competency of running core business (should not get sucked into IT management)

high profit ratio in balance sheet (profit per employee); healthy financial status vmore control with MSP vendors than self-owned employees; more accountability at less cost

challenges faced by employees in skill upgradation so as to meet the on-going technological changes

expensive team overheads

MSP being viable, cost-effective and most dependable option.

Most managed services providers offer common services like pay roll processing and recruitment services. Mafoi Management Consultants has also been offering statutory management and human resources management systems. Focus Infotech has productised its services into:

TechSearch: placement service and executive search in the IT domain for technical as well as functional profiles. It addresses both ends of the recruitment spectrumthe customer and the candidate. For the former in the capacity of an extended HR arm and for the latter as their career managers.

TechSource: IT professional and consulting services on fixed-term contracts, with the right to hire. These consultants form an integral part of Focuss employee base and are exposed to best-in-class opportunities.

Managed services offered by Team Computers is vastly varied managed IT services, managed printing services, security management services, server management and SmartDESK (facility management services). In the HR space, the company provides staff augumentation services. The consultants are selected, inducted, supervised and appraised by the client, while Team Computers carries the headcount on its rolls and payroll process, and meets all other statutory requirements of PF, ESI and taxation, wherever necessary.

Productivity level in an organisation goes up as additional teams are created without actually adding to the internal headcount and associated overheads. Somshekar informs that the services offered are basically of two different types, helping address the long-term and short-term resource needs. Short term resource requirements or consulting is altogether a separate business, the processes and formalities, being something that most would not want to get into themselves.

In arrangement with Express Computer