Category: MBA Dissertations

Apart from the wide range of benefits available with HR outsourcing there are some hidden flaws in this context and as per the research done in this project they are analyzed in this section. As per the interview with the HR managers, business development manager and few employees there are some negative impacts identified and they are discussed in this section. The most common negative aspect identified in this research is that most of the employees are not willing to share their problems with a third party and if this is the case the required employee satisfaction is not achieved and even their performance is affected and thus the overall HR outsourcing is wasted and this analysis is similar to the opinion of Kular. Cost savings is the main reasons considered by the organizations and thus they outsource their key aspects like payroll and training and if they are not handled well by the vendor then the negative impact would be more on the organization and leads to low performance of the organization as well and this analysis is similar to the opinion of Thoms.

Sometimes the contracts written will also lead to negative impact on the HR outsourcing with the service providers and the contract should be written in a well defined manner. When the HR managers were interviewed in this regard they said there is some changes in the quality of service against the payroll and training issues and few employees are complaining about the quality during the contract period and this will lead to break up the contracts some time and finally the organization may lead to financial crisis and this analysis is similar to the opinion of Ferrinho.

There are some chances where the employees are degraded against the job satisfaction and job guarantee where the employees may not feel comfortable in sharing all the issues to the outsourcing vendor and this may lead to confusions among the organizations and the Hr outsourcing vendors and this opinion is similar to the research done by Lilienthal. Learning capability of the organization is also reduced as all the learning aspects are outsourced and in this context the organization may not be aware of the current trends and technologies to be implemented and this analysis is similar to the opinion of Hamilton. 

In general there are two types of HR administration issues and they are core and non-core and the decision to outsource these functions depends on various factors. Ample research is done in this context and the required analysis is given in this section. The core and non core HR administration functions are divided based on the priority and importance and in general the noncore HR tasks are outsourced as the management can handle the risks even the noncore HR tasks are outsourced. The non-core HR administration tasks like staffing needs which includes resume screening and recruitment, leave management, payroll, training and development are mainly outsourced to the third party as they can be benefited in terms of cost and time and this analysis is similar to the opinion of Kaptein.

In general the outsourcing can be varied based on the organization requirements and the outsourcing can be of two types like selective outsourcing and complete outsourcing and the non core HR administration functions are outsourced completely and the core HR functions are outsourced selectively and the decision of outsourcing mainly depends on the specialization of the vendor who can handle the core and noncore HR administration issues and this analysis is similar to the opinion of Westerman.

In general the organizations will outsource the non core HR administration functions to save the cost and also reduce the risks, where the core administration tasks like taxing and costing are not outsourced as they involve lot of organizational risks and this is the main reason considered to separate the core and noncore administration issues and this analysis is similar to the opinion of Westerman.

All the administration tasks that create and enhance directly the business value of the organizations are considered as the core administrative tasks and which has indirect impact on the business value are considered as the non core HR administrative tasks. In general most of the organizations will pay more attention towards the core HR administration issues as they have direct impact on the organization performance and they outsource the noncore HR administration tasks which has indirect impact on the business value and this analysis is similar to the opinion of Murray. 

Outsourcing key HR activities will provide an option to the HR professionals to concentrate more the strategic functions of the organization and in this context the required research is done and the required analysis is presented in this section. As per the opinion of the HR managers interviewed it is clear that all the HR professionals can get ample time to develop the new strategies at their bank as they have already outsourced the HR activities to the vendor and in this context they can pay more attention towards the strategic functions and thus the overall performance of the organization is also improved and this analysis is similar to the opinion of Bach.

In general there are many HR activities that were outsourced and among them the key functions are personal administration, payroll management  employee counseling and assistance, training and management of employees and employee relocation. If these functions are outsourced almost 80% of the HR professionals job is reduced and thus they can focus more on the key strategic functions of the bank and thus they can introduce new HR strategies and functions across the organization to enhance the employee turnover and also achieve the organizational objectives and this analysis is similar to the opinion of Stovel.

New roles to the HR professionals can be engaged by the organization if they are free enough and also the management can make them to work on developing the new business plans and estimate the resource requirements against the human capital and thus the core risk of the organization is reduced and more turnover is expected and this analysis is similar to the research done by Imade. Market strategies are rapidly changing and the bank need to face lot of core competition and in this context the management need more HR professionals to concentrate on the core business activities as well and develop the human capital management plan and if they are busy with the core and noncore HR activities it is not at all possible. In this context the HR outsourcing will help the HR professionals to focus more on the core business activities as well and thus the overall organizational business is improved against the performance and can gain more competitive advantage in this context and this analysis is as per the findings of .

In general the HR professionals are always with the employee issues related to taxes, payroll, salary hikes, relocation and work flexibility and in this context a lot of time and mind power is consumed and they can’t be involved in the core organizational and business activities and thus if these activities are outsourced to the right HR outsourcing vendor all the risks associated with the employee issues are reduced. Once these risks are reduced now the HR professionals can be involved in the core strategic functions of the organizations and they are provided ample freedom to concentrate on the core business and administration issues and thus the overall output and turnover of the organization is improved and this analysis is similar to the opinion of Righeimer. 

Research Analysis

The main aim of this chapter is to analyze the findings that were gathered from the interview process and presented in the previous chapter. In this research four research questions are identified and based on the analysis they are answered with reference to the work done in the literature review chapter of this research. All the four questions are answered against the findings from the research done and they are presented in different section across this chapter. A detailed level of analysis is done against the work done in the research and the key findings are discussed to evaluate the quality of research done and they are presented as below 

Research Question: How non-core HR administration outsourcing can increase the organizational efficiency and reduce the cost of operations? 

As discussed in the literature review section and the research findings section outsourcing the noncore HR administration tasks will reduce the cost of operations and also improve the overall efficiency of the organization in many aspects. From the findings it can be observed that when the HR activities like training and development, staffing and payroll are outsourced to a third party the bank can concentrate on the core operations like finance and business activities and also they will get ample time to open new business areas and this analysis is similar to the work done by.

The HR aspects like staffing can be considered as the best option to be outsourced as if the organizations spend lot of amount and time on staffing they may lose important operations to be held at the core level and suppose they are outsourced to HR outsourcing vendor, now the vendor can only concentrate on staffing as it is considered as their core administration activity and thus the overall cost is reduced and also the organization can now concentrate on their core business aspects and this analysis is similar to the research done by. It is also clear from the interview with the business development manager that the direct and indirect costs are reduced when it comes to the employee welfare programs and also training and developed.

As per the findings it can be analyzed that when the HR activities are outsourced to the vendor the cost of operations on the bank side are reduced and even the risk of handling the issues like staffing and training are also reduced and when these risks are reduced the management can now concentrate on their other important business aspects and thus the overall organizational efficiency is also improved and this analysis is similar to the research of . Organizations are really benefited with HR outsourcing as they can lead to their core business growth by avoiding the HR risks at their sided and in this context the HR outsourcing can be considered as the best option as all the issue raising aspects can be diverted to vendors and the vendor can handle them easily and thus the overall operational costs are reduced and this analysis is similar to the findings of .

If the organizations outsource the payroll to a vendor, all the related issues are reduced and even the process is defined with a clear structure. In general employees will always come up with payroll issues and in this context the HR outsourcing vendor can handle them meanwhile reducing the core burden on the organization and this analysis if similar to the opinion of . If the organizations can outsource the non core HR administrations tasks then they can meet up the expectations of the customers and also set the annual and quarterly targets to the business team as they don’t have the HR risk and thus in this manner both the costs are reduced and also the overall organization performance is enhanced and this analysis is similar to the opinion of .

Thus from the overall analysis it is clear that outsourcing the non core HR administration tasks will improve the overall organization efficiency and also reduce the operation costs of the organization in many aspects like it reduces the burden of HR issues and also diverts the direct and indirect costs to the vendor in terms of training and development and staffing aspects. 

When the employees are asked regarding their freedom levels to share their issues with the HR outsourcing vendor most of them replied that they are free enough to share their issues and even a smaller one is given bigger importance. Few employees said that they never tend to share the issues as they have some odd experiences in this regard and from this response from the employees it is clear that HR outsourcing vendor is providing ample freedom to the resources and even there are few issues to be resolved in this context.

A proper guidance and plan of action from the organization would close the issues to the possible extent. When the employees were asked regarding the welfare programs offered by the HR outsourcing vendor few employees said they are satisfied with the welfare programs particularly in terms of health and education allowances, where most of the employees said they are really satisfied and looking forward for more welfare programs in future.

From this reply from the employees it is clear that the interaction of the employees with the HR outsourcing vendor is good in terms of welfare programs and they are excepting more from them and also they are able to communicate this to the officials as well. Most of the employees in general will have issues related to their pay and when the employees are asked regarding the support they get from the vendor towards their issues most of the employees said they are free enough to discuss the pay issues and few employees said that they are not interested in discussion.

From the response from the employees it is clear that most of the employees are really happy with the current HR outsourcing practice with related to the pay issues. When the employees were asked with respect to flexibility in working hours most of the employees said that work flexibility is well provided and they have no issues in this context, where few employees have some issues and they are in the discussion process. It is clear from the response of the employees that they are satisfied with the current work flexibility and even the HR outsourcing vendor is considering their requests in this context.

Almost every employee is keen about their career and when they are asked regarding the role of HR outsourcing against their career most of the employee said they are happy with the current work conditions and these conditions will definitely lead to bright future and few said if the vendor can lead more training programs it will be helpful to us. When the employees are asked regarding the feedback against HR outsourcing at their organizations most of the employees said that they are happy with the current practices and few replied that in future a better management is expected.

Research findings from opinion of employees 

As discussed in the research methodology chapter few employees are identified in the interview process and they are interviewed against their opinion and satisfaction levels across HR outsourcing and the key findings from the interview are provided in this section as below 

Opinion of employees towards basic outsourced HR activities 

Gathering the opinion of employees towards the basic HR activities and considering their feedback is really important to estimate the impact of HR outsourcing on employee performance and in this context few employees are interviewed and their views are provided in this section.

When the employees are asked regarding their knowledge levels on bank HR activities most of them replied like they are aware of the HR operations and the organization and HR outsourcing vendor will update each and every HR aspect with them in the meetings. From their opinion it is clear that the bank is successful in outsourcing all the core HR activities to the vendor and the vendor ensured that all the employees are aware of the current HR activities in the organization. In general employees may develop some type of negative attitude towards the HR outsourcing as they may feel discomfort to be controlled by a third party and in this context, when the employees were asked regarding their feelings towards this, most of the employees said that they never felt any difference in this aspects.

Few employees argued that outsourcing the HR to the third party may be a good practice but sometimes the vendor is not considering their requests. From this mixed opinion of the employees it is clear that always outsourcing the HR will may raise new issues from the employee side as their inner feeling towards the own organization and a third party would differ and to close this gap the vendor and organization should take the right measures all the time. When the employees are asked regarding the their satisfaction levels towards their satisfaction on training and development almost all the employees are happy with the training and development provided by the outsourcing vendor and also they said a detailed level of training is provided by the vendor. 

From this reply from the employees it is clear that most of the employees are satisfied with the training provided by the HR outsourcing vendor. When the employees are asked regarding the benefits they observed with the HR outsourcing few employee said that, they are given more attention towards training and welfare by the vendor and few employees said that they are benefited in terms of workplace issues and working hour’s management with HR outsourcing. From the replies from the employees it is clear that HR outsourcing provide an option to explore the employee issues at the peak levels and thus the overall performance of the organization and employees is improved a lot. 

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.

In general the performance of the HR outsourcing vendor and the level of service provided by them may vary during the contract period and to gain the required knowledge on this, the HR managers are asked if they have observed any change in the quality of service. When this question is asked one of the HR managers replied that, “We haven’t observed any changes at the level of quality there are providing but still we need to focus more on this issues”.

From this statement it is clear that, there is no change in the quality of service provided by the HR outsourcing vendor during the contract period and they maintain ample balance at their service. One of the HR managers replied to the same question like “There are no big changes at their attitude and only one thing we observed that there are some changes implemented towards payroll system”. It is clear from the statement that there are few changes observed across the payroll system , but even this impact is on positive side and thus from the overall analysis it is clear that there is no big changes to the quality of services provided by the HR outsourcing vendor and it is at the top standards.

Maintaining a good relation with the HR outsourcing vendor is always important and all the success of the contract mainly depends on this relation and when one of the HR managers asked regarding the level of relation they maintain with their vendor, he replied like “We always maintain good relation with the outsourcing vendor and we arrange frequent meetings to discuss the updates and issues”. From this statement it is clear that, a regular meet up with the vendor and discussing the facts and issues regarding the key aspects outsourced will make the relation stronger and wider.

When the same question is asked to another HR manager he replied like “We will conduct regular sessions with the HR outsourcing vendor and discuss the organization objectives and strategies on regular basis such that all our targets are fulfilled”. From this statement it is clear that discussing clearly the organizational strategies and objectives with the HR outsourcing vendor will enhance the relationship among the organization and vendor. All the key issues faced and future plans are discussed such that both the organization and vendor are under the same room of the organizational objectives and for this purpose maintaining a good relation is always essential.

With a proper HR outsourcing strategy the overall human resource capital management is enhanced and when one of the HR managers is asked regarding this he replied like “Human capital is really essential to improve the overall organizational performance and with outsourcing the HR this capital is more formalized and improved in many aspects like performance and motivation”. From this statement it is clear that human capital management has become easy with the HR outsourcing and also performance of the employees is enhanced in every possible aspect.

When the same question is asked, one of the HR managers replied that “Managing the human capital needs lot of efforts and time, where we have saved them by a simple outsource job and the results are at expected levels”. It can be analyzed from this statement that making the human capital on the right way needs lot of efforts and time and if it is outsourced the core operational issues of the organization can be concentrated and in this context the overall organization performance is also enhanced.

When the HR managers are asked regarding the future activities with respect to HR outsourcing, one of the HR managers replied that, “In future we are planning to have a separate employment and recruitment cell with the vendor to improve the recruitment process” and from this statement it is clear that, there is always some scope to improve the HR outsourcing process and it can be streamlined at different levels.

When the same question is asked to one of the HR managers, he replied like “We are planning to outsource the HR activities like shift management and job satisfaction issues also in future”. From this statement it is clear that all the HR activities can be outsourced to improve the overall performance of the organization and the sensitive issues like time managment and job satisfaction related issues can also be outsourced to the vendor. 

Estimating the importance of HR outsourcing is one of the key objective in this research and for this the HR managers are interviewed against the real importance and usage of HR outsourcing and the key findings from their opinion are given in this section. In general few organizations will outsource all the HR activities to the vendor and some organizations will outsource only few HR issues and in this context when one of the HR managers when asked against the core HR activities outsourced, he replied that “We outsource most of the HR activities like employee training and development, payroll issues and employee welfare issues and we achieved excellent results in this process”. It is clear from this statement that, RBS is outsourcing the basic HR aspects like training and development and payroll issues and in general these two has lot of importance in overall HR activities and thus the organization is reducing the burden in handling these issues.

When one of the HR managers asked the same question he replied that “Staffing is the main aspect we outsource to the vendor” and from this statement it is clear that, staffing and recruitment will consume lot of organizational resources and also time and if they are outsourced to the right vendor a lot of time is saved to the organization and they can concentrate on some other important activities. As mentioned in the previous section the overall performance of the employees is increased with a designated HR vendor and in this context when one of the HR managers is asked regarding the role of HR outsourcing against employee performance, he replied that “Employee performance is directly related to their welfare issues and HR outsourcing vendor is really helpful in understanding out employee needs and bank needs at the same time”.

From this statement it is clear that if the HR outsourcing vendor can provide the ample employee welfare then the performance of the respective employees is improved and even the vendor should balance the needs and requirements from both the employees and employer at the same time to achieve the maximum results. When one of the HR managers asked the same question he replied that, “Skills of our employees are regularly updated and the role of HR outsourcing is really important in this context where they will conduct regular sessions for them”. From this statement it is clear that when the HR outsourcing vendor can update the skill set of the employee frequently, the overall performance of the employees is increased and this till make the right steps to improve the productivity of the organization as well. 

In general the level of training and development provided to the employee of any organization by the HR outsourcing vendor is used measure the efficiency of the vendor and in this context, when one of the HR managers is asked regarding the level of training provided by the outsourcing vendor, he replied that “We provide the basic requirements for the employees and the vendor will ensure they are well trained in all aspects”. From this statement it is clear that the organization have some requirements to be trained for the employees and then the HR outsourcing vendor will make the employees to develop the required skills as per the bank requirements.

One of the HR managers answered the same question like “Excellent training and development services are provided by the vendor and they will make all level of employees against overall development”. From this statement it can be understood that overall development of employees is provided during the training and development stage and the HR outsourcing vendor will ensure all level of employees are well trained during this session.  From the overall analysis it is clear that key HR activities like staffing, training and development, payroll and employee welfare are outsourced and even the employee performance and skills are enhanced with this practice. 

As per the opinion of the HR managers, payroll is the important HR activity they outsource and when the managers were asked regarding the impact of HR outsourcing on payroll, one of the HR managers replied that “We could able to streamline the payroll system by outsourcing it at the right time and the overall process is free now and we are not struggling with these issues”. It can be concluded from this statement that if the organizations outsource the payroll to a vendor, all the related issues are reduced and even the process is defined with a clear structure.

In general employees will always come up with payroll issues and in this context the HR outsourcing vendor can handle them meanwhile reducing the core burden on the organization. When one of the HR managers asked the same question, he replied that “Payroll is the main issue we have faced and most of them are solved these days due to outsourcing it and the payroll issues from the employees are solved by them”.

It is clear from this statement that, most of the employees will have payroll issues and outsourcing it completely is the best option in this context and thus the management can look after other important issues. In general the HR outsourcing process will also provide various types of employee assistance programs and when one of the HR managers is asked regarding this the reply is like “Employee motivations and employee guidance are the basic assistance programs offered by our vendor and they ensure all out employees are well motivated and build a positive attitude towards work”.

From this statement it is clear that motivation is the important aspect to be considered when it comes to employee assistance and with this regard the HR outsourcing vendor will guide the employees towards developing a positive attitude against the work. One of the HR managers replied to the same question like “Employee assistance is provided by the vendor in all required aspects including workplace and personal issues of the employees” and from this reply it is clear that, the HR outsourcing vendor considered all the requests and issues from the employees against the workplace and personal issues as well. Always the HR outsourcing will provide ample freedom to the organizations and also the employees as well as they there is lot of scope to solve the sensitive employee issues with HR outsourcing.

Motivation and guidance are key among them and in this context a proper level of assistance is given by the HR outsourcing vendor. Tracking the performance of the employee should be the primary task to be executed by the organizations when they outsource the key HR activities and in this context when one of the HR managers were asked regarding how they track the employee performance, he replied that “We track the employee performance by taking the right feedback from the vendor and also interact with the team leaders to understand their position”. From this statement it is clear that feedback from the team leaders and the HR outsourcing vendor is used to track the performance of the employees and in most of the cases the performance is at good levels as per the opinion of the HR manager.

When the same question is asked to another HR manager, he replied that “We observe their performance at the workplace and also track the performance by comparing with the pervious performance and it is noticed that most of the employees were improved at their core skills after we outsourced the training and development”. From this  statement it is clear that, a comparison process is implemented to track the employee performance like before and after outsourcing the training section and by this a clear picture with respect to the level of training provided by the HR outsourcing vendor is also gained. 

Research findings from interview with HR managers 

Two HR managers are interviewed in this research with the help of a questionnaire and it is given in the appendix section. Different range of questions were asked to the HR managers to gather the information related to their core HR activities outsourced and their potentiality in outsourcing the HR activities and making the human capital an important resource to the organization. Based on their opinions during the interview process and the corresponding findings are given as below under different categories 

Vision of HR managers towards HR outsourcing 

In general HR managers will have a defined vision towards outsourcing their own HR activities and in this context both the HR managers are interviewed regarding this and they are interviewed based on few identified questions and the corresponding findings are given in this section. When one of the HR managers was regarding the question related to the key reasons to choose HR outsourcing, he replied like “We need to concentrate on the core business activities and thus to streamline the HR activities in our bank we opt the HR outsourcing” and from this statement it is clear that, to improve the core business activities across the organization a well planned organizational activities are required and in this context the management at most of the times will concentrate on the core business activates and at the same time they prefer to outsource the important HR activities to reduce the burden and risk from the bank side.

When the same question is asked to one of the HR managers he replied like “Outsourcing the HR activities will improve the quality of the human resources as a special care is taken towards by the vendor when compared to us” and from this statement it is clear that, when HR activities are outsourced they are given more importance by the vendor.

It is also clear that when the organization need a separate control over the core business activities and improve their own business value they always prefer to outsource the important HR activities like staffing and payroll, where they can mould these activities for their business benefits and even the vendor takes more attention towards the organization human resources as it is their core responsibility to furnish the requirements from the organization side. When an organization has a separate HR department it is really important to understand the reasons behind outsourcing the HR and with related to his when one the HR managers is asked about what made them to outsource the HR activities he replied like “HR outsourcing provides an option to improve the quality of training and development as the vendor is expert in understanding the bank requirements”.

From this statement it can be understood that, an expertise is always required when it comes to training and development and also the bank HR team may not concentrate on the training issues all the time and thus outsourcing the HR will enhance the quality of training and also the quality of core operations as well. When the same question is asked to one of the HR managers he replied that “Productivity of the organization is improved in all the aspects with HR outsourcing and thus we always look for better quality in Hr outsourcing” and from this statement it is clear that, when the core HR activities are outsourced the overall productivity and performance of the organization is really improved a lot.

Employee turnover plays an important role in estimating the HR performance of any organization and in this context when the HR managers are asked regarding the employee turnover due to HR outsourcing at their organization, he replied that “Employee turnover has the direct impact with the HR outsourcing and this impact is always in positive terms”. It can be understood from this statement that, employee turnover is always increased with the HR outsourcing as the outsourcing vendor keeps lot of attention towards improving the employee overall performance and with this the impact on the turnover is directed towards a positive results.

One of the HR managers replied to the similar question like “HR outsourcing can be considered as the best source of improving the employee turnover and with proper training and development employees prefer this against their career growth as well”. From this statement it can be analyzed that when the employees are really satisfied with the training and development given by the HR, they will stay back with the organization for long duration and also they will make the paths for improvements in their career as well. When the employees develop a positive attitude towards the HR activities across the organization then automatically the overall employee turnover is increased a lot.

Every organization or every HR manager will have a certain vision towards Hr outsourcing and in this perspective when one of the HR managers was asked, he replied like “Our vision is very clear towards HR outsourcing and it is all about improving the human capital and also to concentrate on core bank aspects” and from this statement it is clear that, most of the organizations prefer HR outsourcing in the context to improve the employee performance and also concentrate on their basic operations such that the overall organizations performance is improved in every aspect and even the employee turnover is increased.

When the same question is asked to another HR manager, he replied that “Vision is very clear against HR outsourcing and it is all about reducing the burden on bank with respect to HR” and from this statement it is very clear that when few of the HR activities are outsourced the overall risk related to sensitive HR issues are solved without any burden on the organization. Thus from this overall analysis it is clear that HR outsourcing is the best preferred option by the bank to reduce their risk and also to improve employee turnover and organization performance.