Overtime, as business in general embraced the concept of outsourcing, to reduce overhead cost and improve Company’s competitive advantage in the labour market ; many companies started to use outsourcing in the area of HR along with the traditional functions like Payroll and Benefits.
IT companies were the first to outsource their staffing needs to third parties. The basic philosophy of those companies is to concentrate on what they do best – the core competencies that are key to attract and retain customers. Everything else for them – is a non-core competency and should be procured for the best value.
Outsourcing has raised the bar for the growth of third parties or staffing companies to cater the hiring need of those companies in various verticals. RPO gained favour among HRM.
With the advent of the conventional methods, the recruitment has become an industry in itself, based on the goal of providing a candidate to a client for a price. These days the default position is to outsource.
Companies have come up with general, extra ordinary and niche skills pool of candidates targeting specific companies hiring needs. In today’s world staffing companies are benchmarking higher goals by exploring new horizons.
Over the ages HR was treated as a cost centre adding up cost to the organisation. The trend changed now a days, HR is treated as value centre as it manages both human resources and capital received on them. HCM (Human Capital Management) stands appropriate as the HR department also started generating revenue to the company.
~Sushma Namburi
