Cost mitigation impact and measurement material in outsourcing HR functions in Indian banks

Abstract

Human resource management is an important operation in banking organizations. In private banks of India, employees are recruited through human resource managers. However, many banks do not give importance on making HR management as a department. They outsource recruitment process to third party HR management organizations. This outsourcing material process is applied to reduce operational requirements and management activities. This is because; banks mainly give importance on accounting operations. In Indian private banks, recruitment process is not followed as Government banks. This is mainly because; Government banks in India recruit employees through all India examinations that are given by millions of candidates. It is a long-term process. On the other hand, private banks usually hire candidates through their own recruitment systems or by notifying some third-party HR management companies to hire candidates for them. However, the question is that if the material outsourcing process of HR management in private Indian bank does help in cost mitigation or not. The main intention of outsourcing HR activities for Indian private banks is to mitigate cost of recruitment and human resource management. However, it is also necessary to measure the impact of cost mitigation strategies and to measure the impact. In this process, there are many techniques that private banks of India can use. The aim of this article is to evaluate the HR management outsourcing strategies of private banks of India. The next process will be to evaluate the process to evaluate impact of cost mitigation strategies and to measure the impact. Lastly, some recommendations for the banks will be highlighted that will be based on evaluating the strategies that they can implement to make the outsourcing activities more effective and beneficial.