Major potential for HR outsourcing

BANGALORE: HR-IT, the technology component of HR-BPO is gaining significance globally with organizations using IT as a tool for transformation of HR.

Today 20—30 per cent of HR-BPO is HR-IT. According to Gartner, HR outsourcing has major potential with 85 per cent of the US companies outsourcing at least one component of HR by 2006.

The integrated HR-IT practice set up by Hexaware Technologies is based on these trends and aims to help organisations address major challenges in the human resources area like hiring and retaining the best talent, increased employee satisfaction, managing multiple HR systems, ensuring timely HR analytics and reporting and various other processes involved in HR management.

Addressing the media here, PK Sridharan, executive director and president, India operations, Hexaware said, “Our focus is on the technology space in HR. Unlike many HR service providers, we provide the end to end `Hire to Retire' HR functions.”

Globally, across major organizations, the amount spent on human capital is increasing. HR support and delivery cost is going to be $1600-$2000 per employee per year and 20 percent of the organizations budget are dedicated to human capital, said Madhavi M, principal consultant, HR-IT.

The target market for Hexaware include MNCs HR BPOs and MNC shared service centers. Around 25 percent of the company's revenue is coming from HR-IT, she said.