Outsourcing hr-services: consumer attitudes

» Posted by on Dec 23, 2012 in Other news | 0 comments

From 2002 world-known oil company British Petroleum spent on business process outsourcing bookkeeping to more than 10.5 billion U.S. dollars, with an annual cost of the contract is approximately 1.5 billion at the moment, this is the largest and long-term transaction in the outsourcing market in the world. Another well-known example of P & G shows that outsourcing can be an effective way to reduce costs and even out of the crisis. In addition, 9 out of 10 companies give at least one process for outsourcing. World statistics and examples of successful solutions and encouraging domestic companies.

In Russia, the market for outsourcing business processes such as payroll and personnel administration began in the early 90′s. One of the first of those who provide such services become Western companies become a major European company UCMS Group. After it entered the market the U.S. company Intercomp. The services of these companies, and some niche players were mostly popular among the offices of international companies that wanted nothing to do with Russian legislation and the difficulty of accounting. Not to mention, GlavUpDK (Main Administration for Service Diplomatic Corps Russia), which is to provide services for HR admin and accounting offices of Western companies before others, and continues to serve its customers today. Until the early 2000s, the market in Russia is developing slowly. But gradually became more and more players in the market for outsourcing of human and financial business processes highlighted recruitment agencies, both domestic and large foreign corporations. Number of clients grew, the service became popular not only among Western companies.

What are the main benefits of outsourcing?

First, the transfer of implementation of the “non-core” business processes, professional companies can allow major reductions in costs. In some cases, the savings can be up to 30-40%. According to the Financial Director of a big pharmaceutical company, “Outsourcing has allowed our company to reduce costs and invest the saved resources to business development. Feature of the pharmaceutical market is the existence of a certain category of staff (doctors, researchers) are often distributed in regions that are associated with the company on the basis of contracts of civil nature. Learn more about qarea. The calculations in this case are complex and bulky, and require frequent interaction with regulatory authorities. Accordingly, to give companies better to outsource this process. ” Indicators savings can reach that level through the transfer activity in regions where the cost of salaries and office rent is lower and by economies of scale. Do not forget that for the supplier’s services on this aspect is essential, and what it is bigger, better and more clearly honed its business processes. Another argument for the introduction of outsourcing is the time associated with obtaining access to high-level professionals. For some companies, human resource management which is not a core competence, attracting high-quality personnel is a very problematic issue, coupled with the additional costs. In such cases, removal of these business processes outside the company seems more logical. According to the personnel manager of the company «Siemens Enterprise Communications» Borovikova Svetlana: “Once we decided to leave our accountant payroll / n, the decision to outsource was made at lightning speed, as finding an accountant with knowledge of English and SAP, and even for 2-3 weeks was impossible. And stop the calculation and payment of salaries, we certainly do not have the right. ” Thirdly, in the context of limited resources, outsourcing “non-core” functions more efficiently allocate resources within the organization, focusing on the main activities of the company. A similar opinion was expressed HR Director, “Runner” Maria Zhukova, “Outsourcing can reduce the burden on existing staff, giving them more opportunities to exercise their basic needs.” According to another of our expert, group finance director of companies “PRODO” Ekaterina Semenova: “The benefits of outsourcing, of course. For me, it is, first and foremost, unify business processes and methodological approaches, administration of “independence” in the implementation process, to some extent, reduce costs (or cost savings, such as IT). The key advantages of outsourcing include the quality of the results and the speed of its production. ”

When outsourcing is effective?

By the right to assess the benefits of outsourcing are, first of all, those companies which, by their nature, are faced with quite complex calculations. Deputy chief motivation big energy company gives the following example: “Very complex payroll happens in oil, because there are common rotation with relocation. Workers may be repeatedly transferred from one region to another, this will change the current premium. Also differ in the number of working hours per week for women and men. All this leads to a significant complication of payroll, which, accordingly, it is logical to outsource. ” Another example can serve large retailers, which employ a large number of employees with flexible schedules. In that case there is a problem is a time management and standard software is not able to solve this problem. In such cases, the use of outsourcing is also warranted.

According to the Deputy Chief Financial Officer, “Teva” Natalia Novikova, outsourcing can be an effective solution for a young company, “emerging to form a full accounting staff.”

We should also mention the company, which use grading system. Recall that determine the grade levels of staff, each of which are assigned to an individual policy on compensation and benefits that determine the principles for calculating premiums and bonuses and benefits. Also, in practice, there are situations where employees sitting at the next table, and perform similar functions, for whatever reason, get a different salary. According to the head of outsourcing HR functions of Team Force Alexis Zheltova: “This situation is typical for companies, especially for the banking sector. In my opinion, the outsourcing of payroll in this situation allows us to derive information about the salaries of employees outside the company, and thus prevent possible conflicts within the company related to leakage of confidential information. ”

Outsourcing enjoys high demand in the international companies that came to our market. According to experts, the main reason is the desire of foreign founders avoid possible bias in terms of finances by accountants within the company.

Finally, the role of incentives for outsourcing may make such factors as: the need for continuous interaction with regulators and poorly built by the business processes within the company. Representative of a major energy company, said that if “the company is unable, for any reason, establish a process for the timely transfer of all necessary documents and information to the payroll and HR admin, these functions are appropriate to outsource.”