An HRO or HR outsourcing is an independent organization that fulfills any business’ HR requirements. From recruitment to temporary staffing to payroll processing, an HRO provides an umbrella of HR services to a business. These HRO companies face a lot of complex challenges in the quest of providing the best services to their clients. However, at the same time there are a lot of opportunities in this sector that makes this industry as one of the most promising business sections in India. Here is an elaborate insight on the challenges and opportunities in HRO, which will in turn help these HRO companies to work with a better perspective.

CHALLENGES

1)       Cost effective and timely recruitment

One of the biggest challenges any HRO company faces is recruitment on timely basis and in a cost effective manner. Every business demands the best of the lot at an appropriate time and within an affordable bracket. There is a pool of talented individuals but finding the right candidate which can suit their clients’ requirements is a complex task.

2)       Deceitful Candidates

Another big challenge is to testify whether a candidate is reliable, truthful or not. It often happens that any candidate they recruit might furnish wrong information about their qualifications, work experience and background etc. Recruitment of such candidates can disparage the integrity and name of any HRO company.

3)       Survival in the flood of staffing companies

There are several staffing companies that provide HR services to different businesses. Surviving and making profit in the flood of staffing companies can be a daunting task, but with quality and adhering to SLA’s, this challenge can be easily overcome.

OPPORTUNITIES

1)       Increasing demand of efficient workforce

Finding a right candidate at the right time at right place is a complex task for the companies. But, without efficient workforce no organization can either access or survive in the market. It is also surmise that HRO companies can provide better human resource and in comparatively less time. Due to this most of the organization outsources recruitment and payroll to work in a better and effective way.

2)       Increasing trends of temporary staffing and vendor hiring

The trend of outsourcing HR for temporary staffing and vendor hiring has increased considerably due to upswing in manufacturing, FMCG, IT, Telecom and many other sectors.These sectors work on project basis and hire temporary employees and vendors to work. Basic idea behind this is that whenever the projects get over they will remove the allocated workforce which becomes more easy when it is outsourced to any staffing company.

3)       Start Ups

Start up India stand up India scheme has fueled the growth of HRO companies. It is difficult for most of the startups to head hunt and perform HR function smoothly hence to avoid this tight spot these companies outsource HR functions to HRO which in turn increase the chances of business of these companies. HRO performs all the HR functions for these companies right from Hiring to exit of the employees making the execution easy for startups.

HRO companies such as Adhaan Solutions Pvt Ltd, Randstad, Team lease etc have overcome the aforementioned challenges and are one of the most renowned HRO companies that India has today which are helping a lot of businesses grow by providing them the best HR services.