Outsourcing major driver of productivity

Outsourcing is a major contributor to higher productivity, says a study released here Monday.

Outsourcing is a "major driver" of productivity improvement, as human resource (HR) managers face continuous pressure from corporate executives to increase productivity with existing resources, said the study by Chapel Hill, North Carolina-based Best Practices, LLC, a research and consulting company. The study states that companies that wish to leverage outsourcing in HR administration must be cautious of how and where they implement it. For example, on the one hand companies save up to 30 percent in costs when outsourcing their leave of absence function compared to the benchmark class average cost. On the other hand, other processes, such as employee verification, are more efficiently handled internally. The study, entitled "Achieving HR Administration Excellence - Shared Services, Outsourcing and Cost Reduction", tries to provide insights into structure and staffing efficiency specific to HR records management and data support/shared services.