Research findings from interview with Business development manager
Business development manager is also interviewed in this research process to understand the overall business impact due to HR outsourcing and the key findings from the interview are provided in this section.
In general the HR outsourcing will have a direct impact on the business value of the organization and in this context, when the business development manager was asked regarding the impact of HR outsourcing on business value he replied like “Outsourcing the HR has increased the overall business of the bank, as the organization has got ample time and resources to concentrate on the core business value and gained lot of market shares as well”.
From this statement it is clear that, when the organizations outsource the key Hr activities they can concentrate more on the business value and take the new refinements to the basic business and thus the overall business value is increased a lot. It is also clear that when bank has outsourced the HR activities the annual turnover and quarterly targets can be met easily as they don’t have the HR burdens on the business value as it is outsourced.
As it is known from the literature that there are many benefits with outsourcing the HR and reducing the direct and indirect costs is one among them and when the business development managers was asked the same question, he replied that “Direct and indirect costs are reduced with HR outsourcing and in our organization the costs are saved around 15% this annual year as the risk of pension plans, health coverage and other benefits are transferred”. From this statement it is clear that when the organizations can outsource the HR to the vendors the total cost is reduced a lot as some of the employee benefit schemes are moved to the vendor and the vendor will have some circle in this perspective to reduce these costs.
It can be observed that reduction in costs is the main reason by most of the organizations prefers HR outsourcing. When the business development manager was asked regarding the impact of HR outsourcing on capital costs, he replied like “There is no direct impact on the capital costs but still it can be managed by outsourcing the payroll and all its sub activities as well”.
From this statement it is clear that, capital costs are not directly affected with the HR outsourcing and if the key aspects related to payroll can be outsourced there could be some reasons to optimize the capital costs of the organization. In general there could be some key HR activities that can save the operational costs at the organization and when the business development managers was asked the same he replied like “Training and development and staffing are the main HR activities that would reduce our operational costs”.
It can be understood from this statement that training and development and recruitment are major HR issues that consumes more costs and if they are outsourced to the right vendor these costs can be reduced a lot. HR outsourcing can created new business opportunities all the time and when the business development manager was asked the regarding the new business opportunities created by outsourcing the HR, he replied like “By outsourcing the HR we found lot of time to open new branches and make the resources ready to expand the business in areas”.
From this statement it is clear that, when the organization has ample freedom to raise curtains for new business opportunities it indicates that they are burden less and this situation is created by outsourcing their HR activities and in this context always the HR outsourcing has direct impact on the new business opportunities for an organization and they can expand the business as well with the level of support from the outsourcing vendor in providing the right human capital.