HR Outsourcing in Nepal
Introduction to Outsourcing in Nepal
We have heard about the term OUTSOURCING in Nepal which is flourishing andif taken this opportunity with effective planning we can get more business in Nepal through foreign clients as well which will generate more employment and business in the country itself. And the trend of younger generation leaving foreign countries or abroad for better future can be utilized for better future in our own country.
Human Resource HR Outsourcing in Nepal is a booming industry wherein business owners are adopting the professional culture to boost the productivity of the company. We can see that many of the companies in Nepal are still running in the old traditional way due to which the productivity is low. However those who adopted the new trend are top in the business market.
What is Outsourcing?
When businesses need expertise or skills for their organization, they often turn to outsourcing to get the right person. Outsourcing means: Go ahead to find the right source what you need.
Types of Outsourcing in Nepal
There are various types of outsourcing in business market and following are few of them:
1. Professional service outsourcing:
It’s very common for many companies to outsource their complicated tasks and processes. It is the most popular type of outsourcing as it saves a massive amount of money on overhead.
- IT services
- Business processes and Human Resources
- Finance and Accounts
- Sales and Marketing
- Safety and Security
2. Manufacturing outsourcing:
This is the most pushed towards type. The cost of making your own products locally is significantly high workers and raw material cost is significantly high. Paying the cost is massive. Manufacturing Outsourcing has been a growing trend for a while now. Following are the examples of Manufacturing outsource:
- Reduced Labor Costs
- Fuel Innovation
- Support Increased Demand
- Contribute to Productivity
3. Process-Specific Outsourcing:
Many companies outsource processes revolving around their main product. Normally these procedures would include a very detailed contract that’s detailing the basic stuff such as delivery timelines, customer contacts and costs. This type of outsourcing enables the company to focus on their core strength and improve their over-all customer service. All that while reducing the costs and time it would normally take for them to fulfill all their orders personally.
4. Operational Outsourcing Service:
The scarcity of expert resources, reducing costs and focusing on a company’s core competency are the key drivers towards Operational Outsourcing. Operational Outsourcing provide scale to a business and keeps fixed costs at a minimum allowing companies to grow and contract in response to changing market conditions. It supports the full range of middle and back office functions—from accounting, administration and investor servicing for the back office to full operational support for the middle office.
Why Human Resource HR outsourcing in Nepal?
Outsourcing allows companies to seek out and hire the best experts for specialized work. It’s the practice of sending certain job functions outside a company instead of handling them in house. Outsourcing can also help a business focus on its core components without distractions. Following are the few reasons to outsource:
1. Reducing the liabilities
Giving job to an expert always makes sense when it is about reducing your liabilities as far as handling non-core tasks are concerned. If you are familiar with the benefits of increasing your assets and reducing your liabilities, you will surely consider taking the helpful advice from the experts of the outsourcing companies for skillful handling of tasks.
2. Handover tasks to outsourcing firms
One of the most important things that the top business manager needs to understand is the significance of delegating tasks. When a business grows and expands its operations, the output may lower as you might not have the resources for handling additional tasks. However, with outsourcing, you can assign your work functions to the experts.
3. Potential assistant
Getting assistance is necessary for running businesses and enhancing productivity as you cannot handle all the tasks to cope with the growing needs of your organization. While hiring people for in-house jobs in increased capacities require talent, it requires financial resources as well that may again create the burden on your overhead expenses. By hiring an effective outsourcing firm, you can achieve the destination of reaching higher levels of production with ease.
4. Utilizing the time
The value of time in business is more than any other aspect, and you need to handle everything within a designated time frame for increased productivity. When the basic business tasks are outsourced to the companies located offshore earning more profits come within your reach.
5. Better talent
While the benefits of outsourcing have become a predictable conclusion, it is like recruiting a better expert in an offshore location which is cost-effective when compared with in-house recruitment that enhances the expenses of running business operations. As every process Outsourcing has pros and cons to it. Most of the time, the advantages of outsourcing overshadow the disadvantages of outsourcing.
Advantages of Human Resource HR Outsourcing in Nepal:
Brings more flexibility to your business.
- You can focus on the core activities of your business and leave the non-core activities to your outsource to handle.
- Time efficiency in solving problems.
- Access to professional, specified, expert and high quality services
- Save on capital expenditures.
- Experience increased control of your business.
- Cater to the new and challenging demands of your customers.
- Offshore outsourcing gives businesses the ability to develop new competencies and skill-sets that can be used as a competitive advantage.
- Controlling the operations of your company.
To stay ahead of competition for any organization or business groups, concentrate on core competencies and make use of the latest technologies, then outsourcing can help your organization achieve all this and more. The advantages of outsourcing far outweigh the disadvantages.
Disadvantages of Human Resource HR outsourcing:
- Outsourcing provider will be able to see your company’s confidential information. Hence there is a threat to security and confidentiality in outsourcing.
- Outsourcing provider might not be providing services only for your organization. Since your provider might be catering to the needs of several companies. They will not be able to give your company 100% attention.
- Outsourcing, though cost-effective, might have hidden costs. Stuff like the legal costs incurred while signing a contract between companies. You might also have to spend a lot of time and effort in getting the contract signed.
- There can be several disadvantages, such as, renewing contracts, misunderstanding of the contract, lack of communication, poor quality and delayed services amongst other.
But all of these disadvantages can be avoided by partnering with the right service provider. Before outsourcing, take the interests of your customers and employees into consideration and then make an informed decision.
Human Resource HR Outsourcing in Context of Nepal
For instance, When I came to Kathmandu it was my opportunity to start my career with one of the well known Business group where I got an opportunity to learn a lot about the working pattern and working culture. While working on I felt that the given work was completed within an organization, in fact the completion was just for the sake of finishing the assigned tasks. If that work had adopted the professional culture, then the outcome could have been more productive.
In the context of Nepal, Human Resource HR Outsourcing business in the past few fiscal years, the corporate houses are adopting the outsourcing culture for better productivity. However, there is still lack of confidence to fully adopt the service from second party for outsourcing business due to lack of proper procedure, uncertainty, and lack of experience and understanding of client’s requirement. As it’s a new concept for many of the business industries in Nepal, once adopted this professional culture with proper procedure and implementation then the concept of Outsourcing will be easier in future.