HR is an important part of the strategy of a company. Small business owners or a new organization who has entered business are outsourcing HR process and it is the best option to save capital to invest in your business elsewhere. There are many in favor of outsourcing human resource management.

Execution of outsourcing takes place in stages. There are seven stages in total that would be discussed in the following article. Planning Initiatives is the very first stage of the process. The organization here evaluates the associated risks. It then announces the initiative and the project team is formed. Adviser are hired and the team is trained. Resources are collected and issues related to resource management, information management and project management is addressed. Now the objectives are set.

The tactical implementation is explored. An organization vision, competence, structure , strategy, value chain and transformational tools are understood. Then the determination of contract, rights and its end point date takes place. Finally the initiative is aligned. Performance and costs are analyzed in third stage. The cost of activity is measured along with the costs that would be inured if the project fails. Measurement of performance takes place along with the costs of poor performance. Both costs and performance are bench marked. Finally there is a finding of risks, asset values, total costs, pricing models and final targets.

Organization now is ready to select the providers. They set the qualifying and evaluation criteria. Recognition of providers takes place that leads to their screening. RPF is drafted and proposals are based on qualifications and costs. The whole process is performed with diligence. At the end of the stage there is a determination of total costs for buying, short listing of providers & their finalization. Then everything is reviewed with senior management. This stage is that of negotiation. Negotiations are planned, issues are covered, term sheets are prepared and contract negotiation takes place. Once everything is carried utterly a relationship is announced.

Now the conversion of resources takes place, the team roles are adjusted and compared with transition plan. Transitional issues are than covered, employees are met and offers or expiration’s take place. Those who are selected are counseled and physically moved to the client location. Final stage is that of managing the relationships. Management styles are adjusted and an oversight council is set up. Definition and designing of schedule, schedule and performance reports take place. Oversight roles are performed , poor performance is faced and problems solved. Finally a relationship is built.