HR – OUTSOURCING AND ITS CHALLENGES IN INDIA

HR - OUTSOURCING AND ITS CHALLENGES IN INDIA

Aniket Maji

Guide: Mr. Pattabiraman Vivek

ABSTRACT

Human resources outsourcing is becoming more popular among Indian businesses as a way to focus on core competencies while cutting expenses. While there are many benefits to outsourcing HR, such as lower costs, quicker access to specialist expertise, and greater flexibility, there are also certain challenges unique to the Indian context. The study's objectives are to provide light on the state of HR outsourcing in India and the most significant challenges faced by businesses attempting to implement this strategy.

As businesses in India grapple with the country's volatile legislative and economic landscape, HR outsourcing has become more popular. Hiring a third party to manage administrative HR functions including payroll, hiring, benefits administration, and compliance monitoring allows companies to reallocate in-house personnel to strategic initiatives. While concentrating on long-term objectives, businesses may benefit from the expertise and efficiency of HR service providers.

There are a lot of advantages to outsourcing HR to India, but there are also certain challenges that companies face while doing so. A big challenge is making sure you're in compliance with all local employment laws. There is a complex web of regulations in India that governs minimum wages, working hours, social security contributions, and workers' rights. In order to prevent legal consequences and damage to one's reputation, it is essential that while outsourcing HR functions, compliance with these standards be maintained.

Keywords: HR outsourcing, India, challenges, operations, cost reduction.