Live project

On
Study on Outsourcing Human Resource Function and
Performance

SUBMITTED TO: SUBMITTED BY:

Ms Radhika Shahbaj Singh (2222068)
Charnpreet Singh (2222076)
Pardeep Kaur (2222071)
(B.Com. 3rd Sem.)

Department of Commerce (Session 2022 -2025)

Baba Farid College, Bathinda
(Affiliated to Punjabi University, Patiala)
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 Acknowledgement
We should like to express our special thanks of gratitude to our teacher Ms.
Radhika who gave us the golden opportunity to do this wonderful seminar report
on the topic which also helped us in doing a lot of research through Study on
Outsourcing Human Resource Function and Performance. And we came to
know about so many new things, we are really thankful to them.

Secondly, we should also like to thank our parents, friends and respondents who
helped us a lot in finalizing this project within the limited time frame.

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 Declaration
We are students of Bachelor of Commerce, Session (2022-2025) hereby declare
that we have completed this seminar report entitled on

Study on Outsourcing Human Resource Function and Performance.

The information submitted is true & original to the best of our knowledge.

(B.Com,Sem.3rd)

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Table of Contents

Chapter
Title Page No. Remarks
No.
1. Introduction
2. Review of Literature
3. Objectives of the Study
4. Research Methodology

Data Analysis and

5.
Interpretation
6. Findings
7. Suggestions
8. Conclusion
9. References
10. Annexure

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Introduction
In the ever-evolving realm of business operations and management, the
outsourcing of human resource functions has emerged as a strategic choice that
has profoundly reshaped the dynamics of contemporary organizations. The
management of human resources is undeniably pivotal to the success and
sustainability of any enterprise. It encompasses the recruitment, development,
retention, and overall well-being of the workforce, an invaluable asset that drives
an organization's competitiveness and innovation. In recognition of this,
businesses have sought innovative solutions to optimize their human resource
operations, and outsourcing has emerged as a powerful tool in this endeavor.

The phenomenon of outsourcing HR functions represents a pivotal shift in the

traditional paradigms of human resource management. No longer is HR solely
confined to in-house departments; it now often involves collaboration with
external service providers who specialize in various HR aspects. While the
practice of outsourcing is not a novel concept, its utilization in HR functions has
garnered significant attention over the past few decades. This trend has led to
substantial debates, not only within academic circles but also within boardrooms
and executive suites, regarding the potential impact on organizational
performance.

At the core of these debates lie critical questions: Does the outsourcing of HR
functions enhance organizational performance, or does it lead to unforeseen
challenges that compromise an organization's ability to thrive in a competitive
marketplace? What are the advantages and disadvantages of HR outsourcing, and
how do these factors vary across different industries, organizational sizes, and
geographical regions? These are just some of the pressing inquiries that have
prompted a surge of research and inquiry into the relationship between
outsourcing HR functions and organizational performance.

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The practice of outsourcing HR functions has a rich history that can be traced
back to the late 20th century. However, it wasn't until the 1990s and early 2000s
that HR outsourcing gained significant traction as a business strategy. During this
period, organizations began to recognize that they could leverage specialized HR
service providers to manage certain HR functions more efficiently and cost-
effectively than handling them in-house.

This shift was largely influenced by several factors. First, the rapid globalization
of business meant that organizations needed to find ways to manage HR functions
across different geographic regions, which required specialized expertise.
Second, technological advancements facilitated the development of sophisticated
HR management systems, making it easier to outsource HR activities to external
providers. Third, the pressure to reduce costs and enhance operational efficiency
became a paramount concern for many organizations.

These factors collectively led to a surge in HR outsourcing, with businesses

ranging from small startups to Fortune 500 companies considering this approach
to meet their HR needs. Over time, HR outsourcing evolved from merely being a
cost-cutting strategy to a strategic tool for improving HR performance, talent
acquisition, and overall organizational efficiency.

The journey of HR outsourcing is a compelling narrative in the broader context

of business and management. It is a journey marked by complexity, opportunities,
and challenges. As organizations choose to outsource parts or the entirety of their
HR functions, they embark on a transformational process that can impact their
performance in multifaceted ways. This research paper delves into the intricate
relationship between outsourcing HR functions and the performance of
organizations, seeking to provide a comprehensive understanding of this pivotal
practice. Over the course of this paper, we will explore various dimensions of HR

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outsourcing, from its driving factors to its impact on organizational performance,
ethical considerations, and the role of service providers.

This research paper embarks on a comprehensive exploration of this intricate

relationship, delving into the multifaceted dimensions that underlie the
outsourcing of human resource functions and its potential repercussions on
organizational performance. Through a judicious analysis of empirical data, case
studies, and existing literature, we aim to unravel the intricate web of factors that
contribute to the effectiveness of HR outsourcing. Moreover, we seek to
illuminate the ways in which HR outsourcing practices can influence a wide
spectrum of performance indicators, encompassing financial, operational, and
strategic outcomes.
The implications of this research reach far beyond theoretical discourse. They
extend into the practical realm of management and decision-making, offering
valuable insights to business leaders, HR professionals, and organizations
navigating the complex landscape of HR strategy. By providing a nuanced
understanding of the dynamics at play, our research aspires to equip stakeholders
with the knowledge necessary to make informed decisions regarding the
outsourcing of HR functions, ensuring that it aligns with their unique
organizational goals and challenges.

In summary, this paper endeavors to traverse the intricate terrain of HR

outsourcing, shedding light on its impact on organizational performance, and thus
contributing to the ongoing dialogue surrounding this transformative practice. It
is our hope that this research will serve as a valuable resource for practitioners,
scholars, and decision-makers alike, facilitating a deeper understanding of how
organizations can leverage HR outsourcing to enhance their competitive edge
while simultaneously addressing the intricacies and potential pitfalls associated
with this strategic choice.

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Review of Literature

1. “Outsourcing The Human Resource Function: Environmental and

Organizational Characteristics That Affect HR Performance”-Juliana
Lilly, D.A. Gray, MeghnaVirick. (2022)
A theoretical model is presented that identifies environmental and
organizational characteristics that affect human resource (HR)
performance in an organization. Specifically, we address the issue of when
and under what circumstances does HR outsourcing contribute value to the
firm by attempting to identify environmental and organizational
characteristics that affect HR department performance and how HR
outsourcing mediates that relationship. We propose that supplier
competition in the HR provider market has a direct effect on the amount of
HR outsourcing which in turn has a direct effect on HR performance.
Environmental uncertainty (primary, competitive, and supplier) is
proposed to moderate the relationship between amount of HR outsourcing
and HR performance while asset specificity is proposed to moderate the
relationship between supplier competition and amount of HR outsourcing.

2. Outsourcing Human Resource Function and their impact on

organizational Performance.
Atyehmohammedalzhrani14 jan 2020.
In today's rising competition, the benefit generated by the development of
high organizational quality is becoming more important. The role of human
resource tasks and the culture of organizations can impact the achievement
of substantial organizational effectiveness, which in return draw much
more attention from both theoreticians and practitioners. Outsourcing is
deemed one of the tools which companies use to reinforce their core
competencies to assign their resources effectively. The rise of globalization
has transformed outsourcing into one of the broadly adopted business plans
towards supplying exceptional services to consumers.HR functions has a
key role in the improvement of organizational performance which can be
characterized in three major dimensions; productivity, profitability, and
cost efficiency.the future researchers can investigate the outsourcing with
organizational commitment.
3. Human Resource Outsourcing Success: Leveraging on Partnership
and service quality.

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 Haslizaabdulhalim 31 july 2019. The existing literature on partnership
seems to take the relationship between partnership quality and outsourcing
success for granted. Therefore, this article aims at examining the role of
service quality in strengthening the relationship between partnership
quality and human resource (HR) outsourcing success. The samples were
obtained from 96 manufacturing organizations in Penang, Malaysia. The
results showed that partnership quality variables such as trust, business
understanding, and communication have significant positive impact on HR
outsourcing success, whereas in general, service quality was found to
partially moderate these relationships. Therefore, comprehending the HR
outsourcing relationship in the context of service quality may assist the
organizations to accomplish HR outsourcing success by identifying areas
of expected benefits and improvements. Organizations need to choose
whether to produce and make an activity on their own or to outsource that
activity. Relational exchange theory also plays an important role in the
framework of outsourcing. Past studies of HR outsourcing have largely
neglected the quality of relationship aspects of the client–vendor behavior.

4. Human Resource Management. Linley Hartmann, Article published

on ,1 Feb 2021 . Changes in internal and external labor markets through
externalization of the workforce or the development of contingent and core
distinctions have been intensified in Australia by globalization,
competitive pressures and political changes. An extensive literature
describes and analyzes these changes and empirically assessed variables
influencing the extent of externalization and the strategies associated with
it. Very little attention has been given to the implications of these changes
for human resource management. This article reviews some reasons for the
high rate of externalization in Australia and identifies some issues which
face human resource management as externalization continues to rise.

5. Mathey F. Pierlott. Article publication date 2021.

The purpose of this study is to provide deeper and broader insights into
human resource outsourcing (HRO) frends Data were collected from HR
managers through a questionnaire-based survey, using convenient
sampling with random selection.HRO practices were found to have
evolved into second-generation outsourcing, with considerable potential to
grow further in the future. Firm size and sector had little or no effect on the

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 degree of HRO. Both cost benefits and resourced-based benefits were key
drivers of HRO decisions, with a majority of the firms reporting having
achieved these benefits equally and positively. Most of the functions
outsourced were traditional-transactional HR functions. Slightly more than
half of the HRO decisions were made by top management without the
involvement of HR managers. More than half of the firms surveyed
intended to do more outsourcing in the near future (i.e. within the next two
to five years), including firms that had previously experienced HRO
failure.

6. Astrid reichel ,article published on 1 november 2019. This article

critically examines how outsourcing and devolvement of HR activities
influence the strategic position of HR departments. Past research has
offered conflicting predictions about their impact, ranging from a very
positive move of HR departments to powerful strategic positions to a rather
negative move toward marginality as their tasks are being taken over by
either external providers or line managers. In an effort to resolve existing
inconsistencies in the literature, we base our propositions on the strategic
contingency theory of subunit power (Hickson, Hinings, Lee, Schneck,
&Pennings, 1971). Our results suggest that the strategic position of HR
departments is negatively influenced by devolvement to line management
and positively influenced by outsourcing of noncore HR tasks. No
significant effect of outsourcing core HR activities was found.

7. Patanisusomrith ,Article published on 14 july 2020.The aims of this

research are twofold; first, to determine which human resource (HR)
functions are most commonly outsourced in Australian organisations and
second, to explore the motivation to outsource these HR functions. Results
from a nationwide survey identified recruitment and selection, training,
occupational health and safety, payroll and employee benefits as the top
five outsourced HR functions. The three common reasons to outsource
these functions were to acquire specialised HR capabilities, improve
quality and efficiency, and to free resources to concentrate on the strategic
role of HR. Four main outsourcing drivers–resources, learning, cost saving
and political–were identified, which offer explanations for the most
commonly outsourced HR functions. Apart from the learning factor, these
are consistent with motivations for outsourcing in non-HR areas.

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8. Hasan Gilani shabanaJamshed,Article published on 21 november
2020. “Recruitment Process Outsourcing” (RPO) as a key element of
improvement in corporate brand of organisation through using the talent
and capabilities of employees. This research explores the linkages and
interconnection between the concepts of RPO and its contribution towards
the employer branding process. The review of the literature on RPO and
employer branding identifies an emergence of conceptual framework based
around outsourcing effectiveness and its impact on employer branding. The
social implications of this research relate to the wellbeing and motivated
staff members of an organisation, even though they do not work directly
under the brand of the company they serve in. As mentioned in the research
findings, the complications of the RPO process usually has drastic and
serious impacts on employee attitudes and feelings when it comes to issues
like change management, job satisfaction and the sense of belonging to the
organisation. By addressing the different factors explored in the conceptual
model of this research, an outsourced employee can feel equally motivated
and belonging to the organisation they serve in, just as any other permanent
member of staff who acts like an ideal brand.

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Objectives of the Study
1. Assess the Impact of HR Function Outsourcing on Organizational
Performance: This objective involves evaluating the effects of
outsourcing HR functions on key performance indicators such as
productivity, employee satisfaction, and cost-efficiency. The research will
aim to quantify these impacts and understand the direct and indirect
consequences on the organization.
2. Analyze the Factors Influencing Outsourcing Decision-Making:
Investigate the decision-making process behind outsourcing HR functions,
considering factors like cost, organizational size, industry type, and
strategic goals. This analysis will provide insights into the drivers of HR
outsourcing and help organizations make informed decisions.
3. Examine the Role of HR Outsourcing in Enhancing Talent Acquisition
and Retention: This objective delves into how outsourcing HR functions,
such as recruitment and talent management, can positively or negatively
affect an organization's ability to attract and retain top talent. The research
will explore best practices and potential pitfalls.
4. Evaluate the Legal and Ethical Implications of HR Outsourcing:This
objective involves a comprehensive examination of legal and ethical
considerations associated with HR outsourcing, including data privacy,
compliance with labor laws, and maintaining a positive employer-
employee relationship. The research will help organizations understand
and mitigate potential risks.
5. Compare Different Outsourcing Models and Service Providers'
Impact on HR Performance: This objective focuses on comparing
various HR outsourcing models (e.g., full outsourcing, partial outsourcing,
shared services) and the impact of different service providers (e.g., in-
house, offshore, third-party vendors) on HR performance. The study will
provide guidance on selecting the most suitable outsourcing approach.

These research objectives provide a well-rounded approach to studying the

relationship between outsourcing HR functions and organizational
performance, covering various aspects from outcomes to decision-making
processes and ethical considerations.

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Research Methodology

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Data Analysis And Interpretation

For the collection of primary data, a questionnaire was used in this study. This
helped us to analyze the current situation of the performance of HR Outsourcing.
The results of the responses received have been thoroughly analyzed below.
Tables and charts have also been used to properly depict the data.

1. Type of Industry:

Industry No. of Respondents

IT 12
Construction 2
Manufacturing 2
Packaging 4

Industry

IT
Construction
Manufacturing
Packaging

Interpretation: IT employees are hired in large amount. It is so because different

innovative and creativity which fosters the environment of the business. It mostly
helps to reduce operation cost by hiring low pay employees and increase the profit
margin. Plenty of resources are available with good academic achievements.

2. Number of Employees hired by the companies.

No. of Employees No. of Respondents

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 10-50 7
50-100 9
100-150 3
150 or more 1

No. of Employees

10--50
50-100
100-150
150 or more

Interpretation: The number of employees being mostly hired by the companies

are between 50-100. Mostly companies outsource the employees for fulfilling
their needs, orders, etc. These hired full teams for accomplishing their projects
on time and the total number of employees doesn’t get exceeded more than 100
in 9 companies. 7 companies hired the employees between 10-40. As these
companies may have been established in small scales and required the small
groups of employees.

3. What’s the company’s growth level after outsourcing human resource?

Response No. of Respondents

It remains constant. 0
It increases, but the profit remains
2
constant.
It increases and the profits also
18
increase.

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 It decreases with the increase in
0
outsourcing.

Interpretation: The majority of the companies (18) have answered that “it
increases and the profit margin also increases.” As they have experienced best
utilization with the outsourcing and decreased these operation cost which
automatically increases the profits.

4. Is your organization currently outsourcing any of its HR functions?

Response No. of Respondents

Yes 17
No 3

Response

Yes
No

Interpretation: The answer in majority is 17 which states that most of the

organizations are currently outsourcing the HR functions.

5. Which HR function is currently more outsourced?

HR function No. of Respondents

Payroll 14

16
 Talent Acquisition 3
Background Screening and Reference
2
Checks
Recruitment Challenges 1

Function
16
14
12
10
8
6 Function
4
2
0
Payroll Talent Acq. Background Checks Recruitment
challenges

Interpretation: Majority of answer is payroll. It is the most currently outsourced

by the 14 companies. Payroll management is a function that describes the
specialist software that can empower companies by streamlining and
automatically carrying out the processes involved in it.

Talent acquisition is also used by three companies as it deals with the strategic
tactics and processes for identifying, recruiting and retaining the human resource
a company needs.

6. What were the primary reasons for outsourcing HR functions, if any?

Reason No. of Respondents

Reduced Costs 12
Quality Control 1
Saves Time 6

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 Key to Growth and Scalability 1

Interpretation: Majority of the companies have answered that it reduces costs.

As the companies have no need to invest a lot of efforts or resources, they can
utilize this capital for the priority needs of the business for sustainable growth.
Six companies have also answered the option that “It saves time” as according to
them outsourcing is a time saving process.

7. Has outsourcing led to the cost savings in your HR department? If yes,

please estimate the percentage of your savings.

Percentage No. of Respondents

Upto 15% 4
15-25% 4
25-35% 10
35-50% 2

Percentage
12

10

6
Percentage
4

0
<15% 15-25% 25-35% 35-50%

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Interpretation: Most of the percentage which has likely been answered is 35%.
Outsourcing has led to increase in the cost savings. In some of the companies
have achieved the percentage 25% and 15%.

8. Has outsourcing improved the quality of HR services provided to

employees? Elaborate it.

Response No. of Respondents

Yes 19
No 1

Response

Yes
No

Interpretation: Majority of the companies have answered ‘Yes’ because

outsourcing has enhanced,

a. Specialized Expertise: HR outsourcing allows companies to access specialized

expertise. Outsourced HR firms often have a deep understanding of HR functions,
providing a higher quality of service compared to in-house teams that might not
have the same level of expertise.

b. Focus on Core Business: Outsourcing HR functions allow companies to focus

on their core operations. This increased focus on their primary business activities
ensures better service delivery and innovation, indirectly benefitting the quality
of HR services provided to employees.

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c. Scalability and Flexibility: Outsourcing HR services enable companies to scale
services according to their needs. As a result, they can adapt quickly to changes,
ensuring a more flexible and efficient HR service for employees.

9. What is the feedback from employees regarding the outsourced HR

services? Are they satisfied or dissatisfied?

Response No. of Respondents

Satisfied 18
Dissatisfied 2

Response

Satisfied
Dissatisfied

Interpretation: Most of the employees working in the various companies are

mostly satisfied regarding the outsourced HR services.

Feedback: Employees appreciate outsourced HR services for the specialized

expertise, streamlined processes, and access to innovative tools and technologies.

However dissatisfaction may arise if there are communication gaps, lack of

personal touch or if the outsourced services feel disconnected from the company’s
culture or employee needs.

10. Have there been any challenges in maintaining employee satisfaction with
outsourced HR services? Elaborate it.

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 Response No. of Respondents
Yes 18
No 2

Response

Yes
No

Interpretation: The answered more is Yes. Challenges in maintaining employee

satisfaction with outsourced HR services are:

a. Communication and Personalization: One challenge is the potential lack of

personalized interactions and a perceived disconnect from the company’s culture.
Employee might feel less connected or understood by an outsourced HR provider,
leading to dissatisfaction due to lack of personal touch in the services offered.

b. Understanding Company Dynamics: Outsourced HR providers may struggle

to understand the intricacies of a company’s internal dynamics, leading to
services that do not align well with the company’s culture, values, or specific
employee needs.

c. Confidentiality and Security Concerns: Employees may have concerned

regarding the confidentiality and security of their personal information when
handed by an external HR service provider lack of trust in these matters can lead
to dissatisfaction.

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11. How does organization ensure data security and privacy when
outsourcing HR functions? Select methods?

Methods No. of Respondents

Vendor Selection 6
Data Security Agreements 5
Compliance with Regulations 4
Data Encryption and Access Controls 5

Methods
7

3 Methods

0
Vendor Selection Data Security Compliance with Data Encryption
Agreements Regulations

Interpretation: Vendor selection is most common used function to ensure

organization’s data security and privacy. It is used by six companies.

Vendor Selection: Carefully yet potential outsourcing practice. Access their

security measure, certifications, compliance with data protection laws, and their
trade record in handling sensitive data.

Data Encryption and Access Controls: It is also commonly used by 5 companies.

In data encryption, it implements encryption methods for sensitive data in transit

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and at rest. It defines strict access controls, limiting data access only to authorized
personnel with the outsourcing firm.

12. Are there any plans to expand or change the scope of outsourced HR
functions in the future? What can be used among those?

Response No. of Respondents

Technology Integration 4
Remote Work Support 7
Focus on Compliance and Risk
3
Management
Sustainability and Corporate Social
6
Responsibility(CSR)

Response
8
7
6
5
4
3 Response
2
1
0
Technology Remote Work Focus on Sustainability and
Integration Support Compliance and Risk CSR
Management

Interpretation: ‘Remote Work Support’ is option selected more by majority (7)

of the companies in this study.

In Remote Work Support: With the rise of remote work, outsourced HR services
may need to adapt to cater to the needs of remote employees. This could involve

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creating policies, benefits and support systems specifically designed for a
distributed workforce.

Sustainability and Corporate Social Responsibility is also selected by six

companies. In this, the outsourced HR services may increasingly contribute to
sustainability and CSR initiatives within organizations, aligning with broader
company goals.

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Findings of the study:-
• The majority of type of industries Outsourcing Human Resource are IT
companies and the second most is from Packaging industry.

•Mostly the number of employees outsourced by the industries are the groups 50-
70 and second most hired is 10-40 employees group.

•The greater part of the companies has increased there business growth level after
Outsourcing and increased there profit margin and also decreasing their cost
price.

•17 out 20 organizations are currently Outsourcing the functions of Human

Resource.

•Currently common used Outsourcing Human Resource function is payroll and

the second most is Talent acquisition.

• The most primary reason for Outsourcing HR function adopted by majority of

companies is “reducing costs ” and second most is “it saves time”.

• 37% of the companies have reduced there cost price by outsourcing Human
Resource and second most is percentage of cost savings by companies are 50%.

• Most of the companies number 19 out of 20have improved have improved the
quality of HR services provided to employees.

• The feedback from the employees have been received in the positive way ,the
employees are mostly satisfied with the Outsourcing.

• In order to satisfy the employees with Outsourcing HR services the majority of

the companies have been facing the challenges.

• The most accepted function of Human Resource to prevent the data security and
privacy is Vendor selection and the second are Data security agreements and Data
encryption & access controls.

• Remote work support and sustainability& corporate social responsibility are

some plans adopted by the majority of the companies to expand or change the
scope of outsourcing Human Resource.

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Suggestions:-

After analyzing the data collected from various companies ,the following
suggestions can be made :-

•Outsourcing has successfully made it’s place in the mind of humans but it can
still pay more attention towards the employees satisfaction level.

• Companies can define clear objectives what HR functions will be outsourced.

• Continuous monitoring and evaluation tracks the key performance indicators

,solicit feedback and conduct periodic Audits to ensure the quality and
effectiveness of the outsourced service.

• Cultural alignment ensures the outsourced HR provider and aligns with the
cultural values and objectives.

• Regular Compliance ensures that whether outsourcing partner is is well-versed

and complaint with the company laws , data protection regulations and industry
standards.

• Change Management strategies implements change Management strategies

transit smoothly into the outsourced HR model.

• Data security and confidentiality ensures the data security by outsourcing

partner has robust security measures.

•Communication and collaboration establishes clear communication between

house team and outsource provider.

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Conclusion

Outsourcing human resource management offers numerous benefits but also

poses challenges that must be carefully managed. The decision to outsource HR
functions can bring about improved cost-efficiency, access to specialized
expertise, and streamlined processes, allowing companies to focus on core
business operations. However, this approach requires careful consideration of
vendor selection, contractual agreements, data security measures, and effective
communication to ensure a successful partnership.

The key advantages of HR outsourcing include enhanced service quality,

compliance with regulations, and the integration of advanced technology.
Furthermore, it enables companies to adapt to changes more swiftly and scale
services according to their needs. Yet, challenges such as maintaining data
security, preserving employee satisfaction, and ensuring a seamless cultural
alignment between the organization and the outsourced provider require ongoing
attention.

Successful HR outsourcing necessitates strategic planning, clear delineation of

responsibilities, continuous monitoring, and a commitment to adapt and address
evolving needs. It’s not a one-size-fits-all solution, but rather a tailored approach
that demands proactive management to maximize the advantages while
mitigating potential risks. By effectively managing these aspects, companies can
achieve a robust and efficient HR function through outsourcing.

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References:-

28
Annexure

Questionnaire

1. What type of industry does your company belongs to?

a. IT b. Manufacturing

c. Construction d. Packaging

2. How many employees are hired by your company?

a. 10-50 b. 50-100

c. 100-150 d. 150 or more

3. What is your company’s growth level after outsourcing human resource?

a. It remains constant

b. It increases, but the profit remains constant

c. It increases and the profits also increase

d. It decreases with the increase in outsourcing

4. Is your organization currently outsourcing any of its HR functions?

a. Yes b. No

5. Which HR function is currently more outsourced?

a. Payroll b. Talent Acquisition

c. Background Screening/Reference Checks d. Recruitment Challenges

6. What were the primary reasons for outsourcing HR functions, if any?

a. Reduced Costs b. Quality Control

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 c. Saves Time d. Key to Growth and Scalability

7. Has outsourcing led to the cost savings in your HR department? If yes, please
estimate the percentage of savings.

a. Upto 15% b. 15-25%

c. 25-35% d. 35-50%

8. Has outsourcing improved the quality of HR services provided to employees?

a. Yes b. No

9. What is the feedback from employees regarding the outsourced HR services?

Are they satisfied or dissatisfied?

a. Satisfied b. Dissatisfied

10. Have there been any challenges in maintaining employee satisfaction with
outsourced HR services? Elaborate it?

a. Yes b. No

11. How does your organization ensure data security and privacy when
outsourcing HR functions? Select Methods.

a. Vendor Selection b. Data Security Agreements

c. Compliance with Regulations

d. Data Encryption and Access Controls

12. Are there any plans to expand or change the scope of outsourced HR functions
in the future? What can be used among those?

a. Technology Integration b. Remote Work Support

c. Focus on Compliance and Risk Management

d. Sustainability and Corporate Social Responsibility (CSR)

30