Effectiveness of HR Outsourcing in Education Sector J

Effectiveness of HR Outsourcing in
Education Sector
A Project Report submitted in partial fulfillment for award of the

diploma - Post Graduate Diploma in Management (PGDM)
Date of Submission : <date>
Submitted by:
Jyoti
Effectiveness of HR Outsourcing in Education Sector
PGDM/08/808
Faculty Comments
Name of Faculty : Ms. Rekha Gautam
Signature of Faculty :
Date of Presentation :
Date of Checking :
Comments :__________________________________________________
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Declaration
I Jyoti, 808, PGDM final year student of Shri Balwant Institute of Management hereby
declare that the final project report entitled “Effectiveness of HR Outsourcing in Education Sector”
is an original research work and same has not been submitted to any other institute for the
award of other degree. A seminar presentation of the project report was made on
Effectiveness of HR Outsourcing in Education Sector and the suggestions as approved by
the faculty were duly incorporated.
Signature of Project Mentor Signature of Candidate
Countersigned
Project Coordinator
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Acknowledgements
Success of every project depends largely on the SELF & encouragement and guidance of many others. I take
this opportunity to express my gratitude to the people who have been instrumental in the successful
completion of this study project.
With immense pleasure, I would like to present the project report for Effectiveness of HR Outsourcing in
Education Sector. It has been an enriching experience for me which would not have possible without the
goodwill and support of the people around. As a student of Shri Balwant Institute of Management, I would
like to express my sincere thanks to all those who helped me during my project. Words are insufficient to
express my gratitude towards Ms. Rekha Goutam(faculty PGDM HR) who helped me at every step whenever
needed. At last but not the least my grateful thanks is also extended to Director Prof- R.K.Ratan.My thanks to
all my faculty members for the properguidance and assistance extended by them. I am also grateful to my
parents and friends to encourage & giving me moral support. However, I accept the sole responsibility for
any possible error of omission and would be extremely grateful to the readers of this project report if they
bring such mistakes to my notices.
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Abstract
Outsourcing is subcontracting a service, such as product design or manufacturing, to a third-party company.

The decision whether to outsource or to do in house is often based upon achieving a lower production cost,
making better use of available resources, focusing energy on the core competencies of a particular business,
or just making more efficient use of labor, capital, information technology or land resources.
Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business
function to an external service provider. The client organization and the supplier enter into a contractual
agreement that defines the transferred services.
The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining
quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through
offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.
Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance
of this ratio by offering a move from fixed to variable cost and also by making variable costs more
predictable.
The acceleration of the development or production of a product through the additional capability brought by
the supplier
An organization can use an outsourcing agreement as a catalyst for major step change that can not be
achieved alone. The outsourcer becomes a Change agent in the process.
Access to operational best practice that would be too difficult or time consuming to develop in-house.
So, outsourcing is very beneficial for the education sector. It is helpful in the growth of education sector as
well as students also.
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TABLE OF CONTENTS
1 INTRODUCTION.......................................................................................................................................1
REASONS FOR OUTSOURCING..................................................................................................................................1
1.1.1 Specific examples of corporate outsourcing.......................................................................................3
1.2 NEGATIVE IMPLICATIONS.................................................................................................................................3
1.2.1.1 Quality risk..............................................................................................................................3
1.2.1.2 Quality of service....................................................................................................................4
1.2.1.3 Productivity.............................................................................................................................4
1.2.1.4 Staff turnover..........................................................................................................................5
1.2.1.5 Language skills........................................................................................................................5
1.2.1.6 Failure to deliver business transformation..............................................................................5
1.2.1.7 Security...................................................................................................................................6
1.2.1.8 Qualifications of outsourcers..................................................................................................6
1.2.2 Social responsibility............................................................................................................................6
1.2.3 Company knowledge...........................................................................................................................7
1.2.4 Public opinion.....................................................................................................................................7
1.2.5 Standpoint of labor............................................................................................................................7
1.3 SIGNIFICANCE OF THE STUDY............................................................................................................................8
1.4 REVIEW OF EXISTING LITERATURE....................................................................................................................9
1.2.1 UNDERSTANDING HR MANAGEMENT.......................................................................................9
1.2.3 HR SOLUTIONS – MORE AFFORDABLE THAN YOU MAY REALIZE...............................10
2 LEGAL ISSUES IN OFFSHORE OUTSOURCING TO INDIA.........................................................11
2.1 TAXATION...................................................................................................................................................11
2.2 LEGAL SYSTEMS THAT ARE HETEROGENEOUS...................................................................................................11
2.2.1 The Influence of Local Laws.............................................................................................................12
2.3 DISPUTE SETTLEMENT..................................................................................................................................12
2.4 LEGAL ISSUES IN OUTSOURCING TO INDIA........................................................................................................12
2.4.1 Effective Changes in Indian Laws....................................................................................................12
2.4.2 The Proper Law of Contract in India...............................................................................................13
2.4.3 Choice of Law is endorsed by Indian courts.....................................................................................13
2.4.4 Freedom of choice to choose any law..............................................................................................13
2.5 GUIDELINES TO HELP YOU DEAL WITH THE LEGAL ISSUES IN OFFSHORE OUTSOURCING TO INDIA.................................13
3 RIDING THE IT-ENABLED SERVICES WAVE................................................................................14
3.1 TCS AND HDFC JOIN HANDS TO OFFER IT-ENABLED SERVICES (ITES) TO FIRMS OVERSEAS.................................14
3.2 INTELNET: PLANS FOR GROWTH.......................................................................................................................14
3.3 CROSS-INDUSTRY SERVICES............................................................................................................................14
3.4 GLOBAL CLIENTELE.......................................................................................................................................15
3.5 ITES: TRANSFORMING THE INDIAN BUSINESS LANDSCAPE...................................................................................15
3.6 CALL CENTERS: GLOBAL BUSINESS POTENTIAL...................................................................................................15
3.7 OPPORTUNITIES IN BACK-OFFICE PROCESSING.....................................................................................................15
3.8 TAX CONCESSIONS FOR ITES.........................................................................................................................15
4 HIGH QUALITY IN THE INDIAN OUTSOURCING INDUSTRY...................................................16
4.1 DEFINING QUALITY.......................................................................................................................................16
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4.2 THE INDIAN ADVANTAGE..............................................................................................................................16

4.3 QUALITY LAPSES - PEOPLE AND INDUSTRIES....................................................................................................17
4.4 EFFORTS TOWARDS IMPROVING QUALITY.........................................................................................................18
5 INTELLECTUAL PROPERTY OUTSOURCING...............................................................................19
ADVANTAGE: INDIA................................................................................................................................19
5.1 OUTSOURCING GIVES YOU:.............................................................................................................................21
5.2 WHEN TO OUTSOURCE?.................................................................................................................................21
5.3 WHERE TO OUTSOURCE? INDIA, OF COURSE!.....................................................................................................22
5.4 INDIA OFFERS MULTIPLE ADVANTAGES..............................................................................................................22
1.5 CONCEPTUALIZATION...................................................................................................................................23
1.6 FOCUS OF THE PROBLEM...............................................................................................................................24
1.7 OBJECTIVES OF THE STUDY...........................................................................................................................25
1.8 HYPOTHESES................................................................................................................................................26
2 RESEARCH METHODOLOGY............................................................................................................27
2.1 RESEARCH DESIGN.......................................................................................................................................27
2.2 UNIVERSE & SURVEY POPULATION.................................................................................................................28
2.3 SAMPLE.......................................................................................................................................................28
2.4 COLLECTION OF DATA...................................................................................................................................29
2.5 ANALYSIS PATTERN......................................................................................................................................29
3 ORGANIZATION OF THE STUDY......................................................................................................30
EDUCATION...............................................................................................................................................30
3.1 SYSTEMS OF FORMAL EDUCATION....................................................................................................................30
3.1.1 Primary education............................................................................................................................30
3.1.2 Secondary education.........................................................................................................................31
3.1.3 Higher education..............................................................................................................................32
3.1.4 Adult education.................................................................................................................................32
3.1.5 Alternative education........................................................................................................................32
3.1.6 Indigenous education........................................................................................................................33
3.2 PROCESS......................................................................................................................................................34
3.2.1 Curriculum........................................................................................................................................34
3.2.2 Learning modalities..........................................................................................................................34
3.2.3 Teaching............................................................................................................................................35
3.2.4 Technology........................................................................................................................................35
3.3 EDUCATIONAL THEORY..................................................................................................................................36
3.4 ECONOMICS.................................................................................................................................................36
3.5 HISTORY.....................................................................................................................................................37
3.6 PHILOSOPHY.................................................................................................................................................37
3.7 PSYCHOLOGY...............................................................................................................................................38
3.8 SOCIOLOGY..................................................................................................................................................38
3.9 EDUCATIONAL DEVELOPMENT.........................................................................................................................38
3.9.1 Internationalisation..........................................................................................................................39
4 DATA ANALYSIS & INTERPRETATION...........................................................................................41
4.1 QUESTIONNAIRE ANALYSIS............................................................................................................................41
4.2 SWOT ANALYSIS.......................................................................................................................................55
4.2.1 Strengths...........................................................................................................................................55
4.2.2 Weaknesses.......................................................................................................................................55
4.2.3 Opportunities....................................................................................................................................56
4.2.4 Threats..............................................................................................................................................56
4.3 CASE STUDY ANALYSIS.................................................................................................................................56
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4.3.1 Summary...........................................................................................................................................59
4.3.2 Fact Analysis.....................................................................................................................................61
4.3.3 SWOT Analysis.................................................................................................................................62
4.3.4 Problem Solving – Primary Issues & Secondary Issues...................................................................63
Primary Issues:-.......................................................................................................................................63
4.3.5 Recommendations and Suggestions..................................................................................................64
4.3.6 Conclusion........................................................................................................................................65
4.4 PESTE ANALYSIS......................................................................................................................................66
4.4.1 Political/Legal Environment ............................................................................................................67
4.4.2 Economic Environment ....................................................................................................................67
4.4.3 Socio-Cultural Environment.............................................................................................................67
.................................................................................................................................................................67
4.4.4 Technological Environment .............................................................................................................67
5 LIMITATIONS OF THE STUDY..........................................................................................................68
THE PERIOD OF STUDY IS VERY SHORT. .......................................................................................68
DATA PROVIDED BY THE STUDENTS IS NOT ALWAYS ACCURATE.......................................69
LACK OF ATTENTION PAID BY THE STUDENTS. .........................................................................69
GETTING INFORMATION FROM THE STUDENTS OF DIFFERENT B SCHOOL IS A TEDIOUS
AND TIME TAKING TASK.......................................................................................................................69
THE UNIVERSE SELECTED WAS SONIPAT DISTRICT. SO, THE OUTCOME OF THE STUDY
MAY NOT BE GENERALIZED................................................................................................................69
6 CONCLUSION........................................................................................................................................69
7 SUGGESTIONS & RECOMMENDATIONS.......................................................................................70
8 BIBLIOGRAPHY.....................................................................................................................................72
9 ANNEXURE.............................................................................................................................................73
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1 Introduction
Outsourcing is subcontracting a service, such as product design or manufacturing, to a third-party

company. The decision whether to outsource or to do in house is often based upon achieving a lower
production cost, making better use of available resources, focusing energy on the core competencies of a
particular business, or just making more efficient use of labor, capital, information technology or land
resources. It is essentially a division of labour. Outsourcing became part of the business lexicon during
the 1980s.
A precise definition of outsourcing has yet to be agreed upon. Thus, the term is used inconsistently. However,
outsourcing is often viewed as involving the contracting out of a business function to an external provider. In
this sense, two organizations may enter a contractual agreement involving an exchange of services and
payments. Of recent concern is the ability of businesses to outsource to suppliers outside the nation,
sometimes referred to as offshoring or offshore outsourcing (which are odd terms because doing business
with another country does not mean you have to go offshore) In addition, several related terms have emerged
to grasp various aspects of the complex relationship between economic organizations or networks, such as
nearshoring, multisourcing and strategic outsourcing. Almost any conceivable business practice can be
outsourced for any number of stated reasons. The implications of outsourcing objectively and subjectively
vary across time and space.
Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business
function to an external service provider. The client organization and the supplier enter into a contractual
agreement that defines the transferred services. Under the agreement the supplier acquires the means of
production in the form of a transfer of people, assets and other resources from the client. The client agrees to
procure the services from the supplier for the term of the contract. Business segments typically outsourced
include information technology, human resources, facilities, real estate management, and
accounting. Many companies also outsource customer support and call center functions like
telemarketing, CAD drafting, customer service, market research, manufacturing, designing,
web development, print-to-mail, ghostwriting and engineering.
Reasons for outsourcing
Organizations that outsource are seeking to realize benefits or address the following issues:
 Cost savings. The lowering of the overall cost of the service to the business. This will involve
reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access
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to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap
between industrialized and developing nations.
 Focus on Core Business. Resources (for example investment, people, infrastructure) are
focused on developing the core business. For example often organizations outsource their IT
support to specialized IT services companies.
 Cost restructuring. Operating leverage is a measure that compares fixed costs to variable
costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable
cost and also by making variable costs more predictable.
 Improve quality. Achieve a step change in quality through contracting out the service with a
new service level agreement.
 Knowledge. Access to intellectual property and wider experience and knowledge.
 Contract. Services will be provided to a legally binding contract with financial penalties and
legal redress. This is not the case with internal services.
 Operational expertise. Access to operational best practice that would be too difficult or time
consuming to develop in-house.
 Access to talent. Access to a larger talent pool and a sustainable source of skills, in particular in
science and engineering.
 Capacity management. An improved method of capacity management of services and
technology where the risk in providing the excess capacity is borne by the supplier.
 Catalyst for change. An organization can use an outsourcing agreement as a catalyst for major
step change that can not be achieved alone. The outsourcer becomes a Change agent in the
process.
 Enhance capacity for innovation. Companies increasingly use external knowledge service
providers to supplement limited in-house capacity for product innovation.
 Reduce time to market. The acceleration of the development or production of a product
through the additional capability brought by the supplier.
 Commodification. The trend of standardizing business processes, IT Services, and application
services which enable to buy at the right price, allows businesses access to services which were
only available to large corporations.
 Risk management. An approach to risk management for some types of risks is to partner with
an outsourcer who is better able to provide the mitigation.
 Venture Capital. Some countries match government funds venture capital with private venture
capital for startups that start businesses in their country.
 Tax Benefit. Countries offer tax incentives to move manufacturing operations to counter high
corporate taxes within another country.
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 Scalability. The outsourced company will usually be prepared to manage a temporary or

permanent increase or decrease in production.
1.1.1 Specific examples of corporate outsourcing
There are situations when a firm may consider outsourcing some of its R&D work to a contract research
organizations or universities. Reasons why a firm could consider outsourcing are:
 new product design does not work

 project time and cost overruns
 loss of key staff
 competitive response
 problems of quality/yield.
In this context, the two most populous countries in the world, China and India, provide huge pools from
which to find talent. Both countries produce over 200,000 engineers and science graduates each year.
Moreover both countries are low cost sourcing countries.
Outsourcing in the information technology field has two meanings. One is to commission the development of
an application to another organization, usually a company that specializes in the development of this type of
application. The other is to hire the services of another company to manage all or parts of the services that
otherwise would be rendered by an IT unit of the organization. The latter concept might not include
development of new applications.
1.2 Negative implications
1.2.1.1 Quality risk
Quality risk is the propensity for a product or service to be defective, due to operations-related issues. Quality
risk in outsourcing is driven by a list of factors. One such factor is opportunism by suppliers due to
misaligned incentives between buyer and supplier, information asymmetry, high asset specificity, or high
supplier switching costs. Other factors contributing to quality risk in outsourcing are poor buyer-supplier
communication, lack of supplier capabilities/resources/capacity, or buyer-supplier contract enforceability.
Two main concepts must be considered when considering observability as it related to quality risks in
outsourcing: the concepts of testability and criticality.
Quality fade is the deliberate and secretive reduction in the quality of labor in order to widen profit margins.
The downward changes in human capital are subtle but progressive, and usually unnoticeable by the out
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sourcer/customer. The initial interview meets requirements, however, with subsequent support, more and
more of the support team are replaced with novice or less experienced workers. Some IT shops will continue
to reduce the quality of human capital, under the pressure of drying up labor supply and upward trend of
salary, pushing the quality limits. Such practices are hard to detect, as customers may just simply give up
seeking help from the help desk. However, the overall customer satisfaction will be reduced greatly over
time. Unless the company constantly conducts customer satisfaction surveys, they may eventually be caught
in a surprise of customer churn, and when they find out the root cause, it could be too late. In such cases, it
can be hard to dispute the legal contract with the outsourcing company, as their staff are now trained in the
process and the original staff made redundant. In the end, the company that outsources may find that it is
worse off than before it outsourced its workforce.
1.2.1.2 Quality of service
Quality of service is measured through a service level agreement (SLA) in the outsourcing contract. In poorly
defined contracts there is no measure of quality or SLA defined. Even when an SLA exists it may not be to
the same level as previously enjoyed. This may be due to the process of implementing proper objective
measurement and reporting which is being done for the first time. It may also be lower quality through design
to match the lower price.
There are a number of stakeholders who are affected and there is no single view of quality. The CEO may
view the lower quality acceptable to meet the business needs at the right price. The retained management
team may view quality as slipping compared to what they previously achieved. The end consumer of the
service may also receive a change in service that is within agreed SLAs but is still perceived as inadequate.
The supplier may view quality in purely meeting the defined SLAs regardless of perception or ability to do
better.
Quality in terms of end-user-experience is best measured through customer satisfaction questionnaires which
are professionally designed to capture an unbiased view of quality. Surveys can be one of research. This
allows quality to be tracked over time and also for corrective action to be identified and taken.
1.2.1.3 Productivity
Offshore outsourcing for the purpose of saving cost can often have a negative influence on the real
productivity of a company. Rather than investing in technology to improve productivity, companies gain non-
real productivity by hiring fewer people locally and outsourcing work to less productive facilities offshore
that appear to be more productive simply because the workers are paid less. Sometimes, this can lead to
strange contradictions where workers in a developing country using hand tools can appear to be more
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productive than a U.S. worker using advanced computer controlled machine tools, simply because their salary
appears to be less in terms of U.S. dollars.
In contrast, increases in real productivity are the result of more productive tools or methods of operating that
make it possible for a worker to do more work. Non-real productivity gains are the result of shifting work to
lower paid workers, often without regards to real productivity. The net result of choosing non-real over real
productivity gain is that the company falls behind and obsoletes itself overtime rather than making
investments in real productivity.
1.2.1.4 Staff turnover
The staff turnover of employee who originally transferred to the outsourcer is a concern for many companies.
Turnover is higher under an outsourcer and key company skills may be lost with retention outside of the
control of the company. In outsourcing offshore there is an issue of staff turnover in the outsourcer companies
call centers. It is quite normal for such companies to replace its entire workforce each year in a call center.
This inhibits the build-up of employee knowledge and keeps quality at a low level.
1.2.1.5 Language skills
In the area of call centers end-user-experience is deemed to be of lower quality when a service is outsourced.
This is exacerbated when outsourcing is combined with off-shoring to regions where the first language and
culture are different. The questionable quality is particularly evident when call centers that service the public
are outsourced and offshored.
The public generally find linguistic features such as accents, word use and phraseology different which may
make call center agents difficult to understand. The visual clues that are present in face-to-face encounters are
missing from the call center interactions and this also may lead to misunderstandings and difficulties. In
addition to language and accent differences, a lack of local social and geographic knowledge is often present,
leading to misunderstandings or mis-communications.
1.2.1.6 Failure to deliver business transformation
Business transformation promised by outsourcing suppliers often fails to materialize. In a commoditised

market where many service providers can offer savings of time and money, smart vendors have promised a
second wave of benefits that will improve the client’s business outcomes. According to Vinay Couto of Booz
& Company “Clients always use the service provider’s ability to achieve transformation as a key selection
criterion. It’s always in the top three and sometimes number one.” While failure is sometimes attributed to
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vendors overstating their capabilities, Couto points out that clients are sometimes unwilling to invest in
transformation once an outsourcing contract is in place.
1.2.1.7 Security
Before outsourcing an organization is responsible for the actions of all their staff and liable for their actions.
When these same people are transferred to an outsourcer they may not change desk but their legal status has
changed. They no-longer are directly employed or responsible to the organization. This causes legal, security
and compliance issues that need to be addressed through the contract between the client and the suppliers.
This is one of the most complex areas of outsourcing and requires a specialist third party adviser.
Fraud is a specific security issue that is criminal activity whether it is by employees or the supplier staff.
However, it can be disputed that the fraud is more likely when outsourcers are involved, for example credit
card theft when there is scope for fraud by credit card cloning. In April 2005, a high-profile case involving
the theft of $350,000 from four Citibank customers occurred when call center workers acquired the
passwords to customer accounts and transferred the money to their own accounts opened under fictitious
names. Citibank did not find out about the problem until the American customers noticed discrepancies with
their accounts and notified the bank.
1.2.1.8 Qualifications of outsourcers
The outsourcer may replace staff with less qualified people or with people with different non-equivalent
qualifications.
In the engineering discipline there has been a debate about the number of engineers being produced by the
major economies of the United States, India and China. The argument centers around the definition of an
engineering graduate and also disputed numbers. The closest comparable numbers of annual graduates of
four-year degrees are United States (137,437) India (112,000) and China (351,537).
1.2.2 Social responsibility
Outsourcing sends jobs to the lower-income areas where work is being outsourced to, which provides jobs in
these areas and has a net equalizing effect on the overall distribution of wealth. Some argue that the
outsourcing of jobs (particularly off-shore) exploits the lower paid workers. A contrary view is that more
people are employed and benefit from paid work. Despite this argument, domestic workers displaced by such
equalization are proportionately unable to outsource their own costs of housing, food and transportation.
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On the issue of high-skilled labor, such as computer programming, some argue that it is unfair to both the
local and off-shore programmers to outsource the work simply because the foreign pay rate is lower. On the
other hand, one can argue that paying the higher-rate for local programmers is wasteful, or charity, or simply
overpayment. If the end goal of buyers is to pay less for what they buy, and for sellers it is to get a higher
price for what they sell, there is nothing automatically unethical about choosing the cheaper of two products,
services, or employees.
Social responsibility is also reflected in the costs of benefits provided to workers. Companies outsourcing
jobs effectively transfer the cost of retirement and medical benefits to the countries where the services are
outsourced. This represents a significant reduction in total cost of labour for the outsourcing company. A side
effect of this trend is the reduction in salaries and benefits at home in the occupations most directly impacted
by outsourcing.
1.2.3 Company knowledge
Outsourcing could lead to communication problems with transferred employees. For example, before transfer
staff have access to broadcast company e-mail informing them of new products, procedures etc. Once in the
outsourcing organization the same access may not be available. Also to reduce costs, some outsource
employees may not have access to e-mail, but any information which is new is delivered in team meetings.
1.2.4 Public opinion
There is a strong public opinion in the United States against outsourcing (especially when combined with
offshoring), it leads to job displacement. It is difficult to dispute that outsourcing has a detrimental effect on
individuals who face job disruption and employment insecurity; however, its supporters draw on mainstream
economics to argue that outsourcing should bring down prices, providing greater economic benefit to all.
There are legal protections in the European Union regulations called the Transfer of Undertakings (Protection
of Employment). Labor laws in the United States are not as protective as those in the European Union. On
June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its
manufacturing base employment to 20% of the workforce commenting that the U.S. has outsourced too much
and can no longer rely on consumer spending to drive demand.
1.2.5 Standpoint of labor
From the standpoint of labor outsourcing may represent a new threat, contributing to rampant worker
insecurity, and reflective of the general process of globalization. While the "outsourcing" process may
provide benefits in some form and to some degree it may undermine the ability of labor to resist unwanted
changes in the workplace. For example, a corporation may outsource a division of the company to a service
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provider, that may retain the workforce on worse conditions or discharge them in the short term. The affected
workers thus often feel they are being "sold down the river." Careers Impact
Industry Impact. Outsourcing is thus often criticized for violating the American Dream.
1.3 Significance of the Study

 HR outsourcing in education sector is helpful in controlling the capital cost.
 HR outsourcing is helpful in increasing the efficiency of student.
 It is able to reduce the labor cost.
 HR outsourcing is helpful in increasing the satisfaction level of students.
 It will enhance the capacity for innovation.
 It is helpful in lowering the overall cost of services.
 It is helpful in improving the quality of students.
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1.4 Review of Existing Literature
1.2.1 Understanding HR Management
HR management is a strategic initiative to create the best possible work environment for every employee in
the company.
To start, HR management puts strong focus on your most valuable resource – your employees – as a major
function of business operations. Professional HR outsourcing companies seek candidates with the best mix of
skills, personality, and vision to help grow the culture and future of the company. Then, they determine the
best ways to compensate employees and keep them motivated, such as rewarding them for regularly
exceeding goals and making productive contributions towards company growth.
Once employees are hired, HR management personnel develop their role with the company through training
programs. Known as human resource development (HRD), these initiatives enhance employee activities
through supplemental training, career development, and organizational assistance.
An important function of strategic human resource management is to ensure a safe work environment for
everyone. They want to protect employees' physical safety by caring for the work environment and
preventing injury or illness. An alarm system may protect essentials to the business like computers and
sensitive documents and also provide a feeling of comfort about safety. HR management also details
employees' rights and responsibilities in the company handbook and through government-regulated posters
that detail strict anti-discrimination and sexual harassment policies.
1.2.2 HR management best practices
While they don't directly make money for the company, HR departments help build revenue through strong
execution of ideas and activities. With a series of best practice initiatives, an HR management company can
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assist companies with accelerating adaptation to change through sensitive issues like corporate restructuring
or mergers.
They also create a stronger level of customer service by documenting policies for tending to client needs.
Strategic human resource management helps other departments strategize ways to build the business and
approach new ideas that help the company's growth. To do so, they need the cooperation of HR personnel as
well as every employee.
1.2.3 HR solutions – More affordable than you may realize
The offerings for HR solutions from a human resources outsourcing company (HRO) are so varied that it's
often difficult to determine the individual costs. In general, you pay either a fixed dollar amount per employee
each month, or a percentage of their individual monthly salaries.
With the fixed fee structure, HR solutions will cost $20 to $200 per employee per month. The exact pricing
varies on the functions you need from the HRO and the size of your organization. You may receive a volume
discount on the per employee rate as the number of employees increases. If you're charged a percentage of
individual employee salary for your HR solutions, expect to pay an HRO about 2% to 10% of each
employee's annual salary.
Some HRO providers offer specific human resources management solutions on an a la carte basis. You can
expect to pay a few thousand dollars for developing and placing recruitment advertisements. An audit of your
current HR solutions, such as company policies and employee handbooks, can cost $200 to $500.
Background checks, drug screenings, and psychological evaluations for potential employees will run $25 to
$50 per person.
HR solutions contracts
The typical length of a contract for HR solutions is one year, but most contracts have a 60-day "out clause". If
you don't like the work an HRO provider is doing during the first 60 days, you can cancel the contract without
penalty.
Also, make sure you factor employee raises when finalizing your contract. Since many HRO providers take a
percentage of an employee's salary, they may receive increased fees when that employee's compensation goes
up. If you hire an HRO provider, make sure the percentage is based on the employee's compensation at the
time you signed the contract.
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Now that you have an idea of what human resources management solutions will cost, start your search with a
free Buyer Zone HR Outsourcing request for quotes. You'll be in touch with as many as six different HRO
solutions providers who will provide the services to manage aspects of your company benefits.
2 Legal Issues in Offshore Outsourcing to India
With the rise in outsourcing and with more and more global organizations outsourcing business processes and
IT services to India, there has been a number of legal issues in outsourcing. Companies outsourcing to India
have to face some complex legal issues with outsourcing. If your organization is outsourcing to India, make
sure that your organization is aware of the intellectual property protection and the data privacy and protection
in India. Before outsourcing to India, also make sure that your organization knows about compliance with
applicable Indian laws, enforcing contractual/legal rights in India and dispute resolution procedures.
There are several legal issues in offshore outsourcing and dealing with them effectively can help the
organization who wishes to outsource and the outsourcing service provider, to face the legal issues of
outsourcing. The following are some tips on efficiently dealing with the legal issues of offshore outsourcing.
2.1 Taxation
Offshore outsourcing is often influenced by several international and local issues. The taxation policy of India
also has a big effect on the offshore outsourcing decision. Before outsourcing, find out about the tax
implications that you have to deal with. This is an important legal aspect to deal with, because different
countries have different tax laws. You can meet your outsourcing provider in India and decide about which
tax provision would be appropriate in the legal contract.
2.2 Legal Systems that are Heterogeneous
When you outsource to India or any other country, you will discover that the rules of governance are different
in different countries. In outsourcing, you and your outsourcing provider have to make sure to include two
different legal systems. This heterogeneity in the legal system is an important legal issue with outsourcing
that companies have to deal with. This problem exists, because there is no legal system which can be used
globally. Different countries even have different intellectual property laws. Since there are no standard legal
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rules and regulations to follow, it is best to meet your outsourcing provider and make sure that you adhere to
both the legal systems. This will help you to sort out any legal issues of outsourcing.
2.2.1 The Influence of Local Laws
Some countries have strict data protection and privacy laws, which might be a hindrance in outsourcing. In
such cases, the outsourcing provider and the customer would be legally bound and share equal legal
responsibilities. This might increase the liability of the customer and in some cases can become a legal issue
in outsourcing. Outsourcing service providers also have to protect their business from civil penalties. Conduct
some research on the country that you want to outsource to and if the local laws of that country are a
hindrance, find another outsourcing service provider. The influence of local laws is another major legal issue
in outsourcing.
2.3 Dispute Settlement
Dispute settlement is yet another legal issue with outsourcing. If a customer from U.S wants to sue an
outsourcing provider in China, there would be plenty of disputes. The Chinese outsourcing provider would
not want to go to the U.S and the U.S customer would not want to come to China. There is also the legal issue
of where the case will be filed, as the case has to be fought in the country where the case is filed. These two
countries would also have two different legal systems. When making a settlement contract with your
outsourcing provider, ensure that you mention the system of dispute settlement. Clarifying the legal aspects in
outsourcing and dealing with the problem of dispute settlement can avoid future problems.
2.4 Legal Issues in Outsourcing to India
2.4.1 Effective Changes in Indian Laws
India is the most idea place to outsource to. When you outsource to India, you need not face many legal
issues in offshore outsourcing. There are many global organizations which have been outsourcing to India
and these organizations have not faced any hindrance with the legal issues of outsourcing to India. Indian
laws are always going through amendments and they are often changed to effectively meet the requirements
of today and to be in unison with the latest international laws. India complies to the “agreement on trade
related intellectual property right”. India also accepted the “world trade organization agreement” even when
outsourcing was just starting. The Indian government has brought about many effective changes in patents,
copyrights, designs, trademarks to meet the requirements of today. Such effective changes have transformed
India’s intellectual property laws.
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2.4.2 The Proper Law of Contract in India
When a legal contract has to be made between two countries, the legal regime of any single country becomes
insufficient to deal with the situation. Outsourcing brings about two legal systems into the picture and this is
where the private international law comes into place. Before you sign a legal contract with your outsourcing
provider, make sure that you decide about which law would govern the legal contract. In India, the
outsourcing service providers ensure that the “Proper Law of contract is applied, before a legal contract is
signed.
2.4.3 Choice of Law is endorsed by Indian courts
The courts in India have always endorsed the choice of proper law. If you have expressed the choice of law in
the legal contract, you can be sure that it will be supported in the Indian courts.
2.4.4 Freedom of choice to choose any law
When you outsource to India, you can choose the law that would govern the legal aspects of the contract. You
can also decide which court would conduct the jurisdiction. The sections 13, 15 and 44A of the Indian Civil
Procedure Code and Section 41 of the Indian Evidence Act, govern the conclusiveness and enforcement of
foreign judgments made in India.
2.5 Guidelines to help you deal with the legal issues in offshore outsourcing to India
 If you choose arbitration as the means of dispute resolution, ensure that the place of arbitration
and other important aspects are well defined in the legal contract
 If you choose the Indian law and if you want Indian judgment to be used in your country, then
make sure that your country has a similar law as the Section 44A of the Indian Civil Procedure
Code.
 In case, you sign the legal contract in a country, which is different from the country whose law
you have chosen, make certain that the formal requirements of that place of contract are
fulfilled.
 Make sure that the country whose law you choose supports the proper law for enforcement.
 Ensure that there is a choice of law which governs the legal contract.
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3 Riding the IT-Enabled Services Wave
3.1 TCS and HDFC join hands to offer IT-enabled services (ITES) to firms overseas
India's leading retail housing finance company, the Housing Development Finance Corporation (HDFC) and
Tata Consultancy Services (TCS), the leader in software consultancy services, have set up Intelnet Global
Services, a Rs 40-crore company with 50:50 partnership, to provide IT-enabled services (ITES) to overseas
companies.
3.2 Intelnet: plans for growth
Intelnet's first call center in the software technology park Navi Mumbai is coming up in November 2000 with
200 seats and 500 employees. Ramping up from Navi Mumbai, Intelnet will open centers in Chennai,
Bangalore, and Pune, each with 500 seats. Intelnet will scale up operations over the next few years. The
company proposes to employ 3,000 people by its third year of operation, and within five years, the number
will touch 7,000.
3.3 Cross-industry services
Intelnet will offer:
 Online information and help support through call centers

 Relationship management
 Back office data processing
 Insurance claim processing and revenue accounting, and more.
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These horizontal services will be offered across industry verticals such as financial services, hospitality
sector, airline industry etc. The scope of services would be expanded in the years to come to include services
such as data conversion, web content development etc.
3.4 Global clientele
The JV will leverage the considerable IT and ITES expertise and global client relationships of the two
partners to achieve market leadership. Intelnet plans to market its services to various international customers
including current partners and customers of TCS and HDFC. Chase Manhattan and Standard Life Assurance
are partners of HDFC. These two groups have substantial back office and call center activities, which are
likely to be outsourced to Intelnet.
3.5 ITES: transforming the Indian business landscape
India should see an ITES revolution in the next ten years. According to a NASSCOM estimate, by 2008, this
sector could generate an additional one million jobs and almost Rs. 81,000 crore of annual revenue, most of it
coming from exports.
Current ITES export from India is about US $230 million and it is expected to grow to US $17 billion by
2008. Indian costs are roughly one-third of international costs. There is a tremendous demand for low cost,
good quality work in the ITES sector.
3.6 Call centers: global business potential
Call centers have immense business potential as the current global business of ITES is approximately $10
billion and is estimated to grow to $140 billion by 2008 and $2000 billion by 2010.
3.7 Opportunities in back-office processing
The market opportunity for back-office processing in India is huge, says Morgan Stanley Dean Witter.
According to its estimates, in the United States, total revenue from outsourced call centers amounted to $17
billion in 1998. This business employs 3 per cent of the working US population and the rate of growth of
agent positions is 20 per cent a year.
3.8 Tax concessions for ITES
In the recent amendments to the Budget, the Government of India has extended concessions to IT Enabled
Services, on par with those available to export-oriented units and units set up in the Free Trade Zone and
Software Technology Parks.
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4 High Quality in the Indian Outsourcing Industry
Outsourcing to India is now more about high quality rather than cost. Indian companies are fast scaling up to
match or surpass international quality standards and are ensuring that they stay ahead through stable quality
systems and continuous quality improvement.
The Indian BPO industry, which previously relied on its cost effectiveness to attract customers, is now under
an entirely different dictatorship. Quality is the new buzzword and is dominating business processes and
services like never before. Ninety percent of ITES-BPO companies now have specialized quality departments
that are responsible for ensuring accurate, reliable services to their customers. The spotlight in Indian centers
is now focused on ensuring standards of quality that are at par with, if not superior to their counterparts
abroad.
4.1 Defining Quality
Quality departments have a straightforward approach to identifying the areas that require quality control. The
first step is the identification of parameters that are 'critical to quality'. These parameters are almost always
included in the client's requirements and expectations. Other key factors like accuracy, productivity and
turnaround time are also outlined.
Most companies are now also following the process approach. The process approach is a description of the
linkages between all the activities that work towards meeting the finest quality standards that have been
identified by prevalent quality norms and the client's expectations.
4.2 The Indian Advantage
The Indian advantage lies primarily in the educational and technical qualifications of the personnel, who are
often more qualified than the people working in the parent locations. A survey conducted in 2002 by
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NASSCOM (National Association of Software and Service Companies) showed that an India based ITES-
BPO center in the banking and financial service sector, performs better than a UK or US based facility on
significant factors such as the number of correct transactions/total umber of transactions, total satisfaction
factor, number of transactions per hour and the average speed of answers.
The ITES-BPO industries are most sensitive to incorporating internationally accepted standards of quality
assurance. The NASSCOM survey also found that 50 percent of Indian companies have implemented varied
levels of ISO (The International Organization for Standardization, which conceives sets of quality
management standards) such as ISO 9002, ISO 9001, ISO 9001:2000, ISO 9001:2001.
The survey also says that 45 percent of Indian service providers have certifications like Six Sigma (a
disciplined, statistical quality control method that measures the number of defects compared to the
opportunities to make defects) and CMMI (Capability Maturity Model Integration - which is a process
improvement method that provides a set of best practices that address productivity, performance, costs, and
customer satisfaction.). Moreover, a lot of organizations are upgrading their quality standards to from the ISE
9000 to the new ISO 9000:2000, and from the CMM framework to the new CMMI framework.
4.3 Quality Lapses - People and Industries
Despite superior performance levels and accreditation from international bodies, India still remains at a
disadvantage when it comes to certifications for quality professionals. There are little or no certifications for
quality professionals in India, and those that are available are either US or UK based. Although most
companies make their employees undergo the processes for these certifications, the lack of an indigenous
certification body is being felt, especially due to the scarcity of training centres for quality assurance and
control. The only two popular certifications in the ITES industry are the 'Certified Software Quality Analyst
(CSQA) and the Certified Software Test Engineer (CSTE). Both these certifications are offered by the
Quality Assurance Institute, which is again, an international body. But these too are largely considered
inadequate by most authorities.
Another major problem concerning industries like the customer contact center industry which relies on verbal
one-on-one communication, is the use of incorrect accents and grammar. Quality lapses are felt strongly
because of misunderstandings or the customer's inability to understand Indian accents. Efforts are being made
to improve the quality standards in these areas by deploying specific bodies that evaluate prospective
employees on English speaking abilities such as accent, grammar, fluency and overall communication skills.
The international standard in contact center operations - the COPC certification is now in great demand
among Indian contact centres. While six of the top 25 players already have COPC certifications, 12 more
companies are in the process of being certified.
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4.4 Efforts towards Improving Quality
The frenetic pace, with which Indian players are moving towards achieving internationally recognized quality
control standards, largely arises out of the awareness that the BPO industries cannot sustain themselves on the
advantages of lower costs and English speaking abilities alone. The importance of consistency, low error rates
and customer satisfaction has never been felt as strongly as right now.
Naturally, governing bodies like NASSCOM are holding no bars in its efforts to improve quality regulation.
By the end of 2004, it plans to introduce a common certification programme across India for aspiring
candidates, in terms of the skills and knowledge required by the BPO industry.
Another significant move towards ensuring quality is NASSCOM's initiative towards controlling issues like
copyright infringement. It plans to formulate a comprehensive draft proposal to ensure information security
and data privacy. The proposal will also emphasize the need for internal checks and continuous quality
reviews, both by the internal senior management team as well as by the client team.
NASSCOM also plans to create a common yardstick for BPO organizations. Attempts to create such a
yardstick are being made by Carnegie Mellon University which is involved in developing E-SCM or the E-
Services Capability Model. This model is extremely useful for customers who are selecting a suitable service
provider, as it allows them to compare the capabilities of different service providers, and also compare issues
associated with the initiation and completion of the project.
The concept of benchmarking is also beginning to be used more regularly. Benchmarking is a continuous
process of assessing and comparing an organization's performance with a recognized industry leader. This is
especially useful in knowing where a particular company stands in relation to its competitors. It also makes it
easier to identify which areas need more attention in terms of quality control.
The Quality Assurance Institute holds various training programmes in Six Sigma, COPC Implementation and
Support and non-certified skills like maintaining customer satisfaction, people management, service levels
and transaction monitoring.
For a company, ignoring quality now means certain extinction. Quality therefore, is no longer an option, it is
the only choice.
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5 Intellectual Property Outsourcing
Advantage: INDIA
Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, symbols,
names, images and designs used in commerce. IP plays an important role in an increasingly broad range of
areas, ranging from the internet to healthcare to nearly all aspects of science and technology, law, literature
and the arts. Understanding the role of intellectual property in these areas - many of them still emerging -
often requires significant new research and study.
No person or for that matter no business organization is an island unto itself. No business enterprise is
capable enough to perform all its activities by itself. It has to depend upon some other entities for some of its
functions. Assigning some of its activities by a business to others is by general definition called outsourcing.
Companies take a step back, look at what their competencies are and are not, and if they find some are
deficient, they contract an outside business whose expertise covers those aspects.
With a realization that they can't be all things to all people, service organizations like Intellectual Property
practitioners, lawyers, physicians, surgeons, dentists, clinical laboratories, hospitals are relying on service
providers to manage critical but non-core processes for them. By doing so they are able to focus more on their
core competencies. It is in fact essential for them to do so as these professionals are generally operating with
skeleton staff strength and for the sake of profitability are not in a position to maintain large work force.
Outsourcing of support functions like search, analysis, proof reading, reminders to the customers, pay roll,
drafting and editing of documents, maintaining personal records of customers, research and development
(R&D) et al allows them to focus on their core competencies and remain profitable. It won't be wrong to say
that in 10-15 years from now, service organizations may be outsourcing all work that is "support" rather than
revenue producing to keep themselves afloat.
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The management needs to look at the business from a strategy perspective. Without these aspects taking up
personnel and time, they could focus their capital and energy on other areas. Outsourcing has many benefits,
including the fact that the outsourcer's job is to devote its resources to this one aspect of a business, be it
financial or legal, etc. In general, this would mean that the service level would be higher. These outsourcers
are providing a better service at a much lower cost than the company's costs in performing the function in
house. Outsourcing gives these businesses the opportunity to provide much improved quality of service to
their customers.
Outsourcing of intellectual property functions is not a new phenomenon. For many years now, outsourcing of
mainly support functions has become a major player in the business game of IP practitioner firms in the US.
Despite the anti-outsourcing rhetoric, businesses must remain profitable in today's highly competitive global
economic environment particularly when the IP practitioners and other professional service providers are
operating on razor thin margins. Those firms that outsource some of their functions into other countries are
reaping rewards and meeting the bottom-line goals.
In recent months Microsoft Corp. began using Indian professionals to search for prior art - written
information about an invention - in preparation for filing patent applications. Other Fortune 500 companies,
such as Oracle Corp., have considered it. And law firms, which often follow the lead of their customers on
new initiatives, are finally catching on.
Outsourcing may be a dirty word for some people for political considerations. But in the real world - where
costs and competitiveness matter - Intellectual Property Practitioners, medical practitioners as well as
lawyers, like other professionals, have started to recognize the value of tapping into the highly educated,
English-speaking Indian workforce to carry out tasks that would typically be performed by junior-level
employees. Several outsourcing companies are courting the U.S. legal market, using Indian lawyers,
scientists, and other trained professionals in cities like Hyderabad, Bangalore, and Noida. There are a few
different emerging models. Vendors like Lexadigm Solutions and Lawwave.com rely exclusively on Indian
lawyers to conduct low-level legal work and analysis. Others, like Office Tiger, use a mix of lawyers and
trained professionals to handle legal and non-legal tasks such as managing conflicts databases and document
management and review.
Some law firms and legal departments have opened their own offices staffed by Indian employees, rather than
outsourcing their work to a third-party vendor. This is called offshoring. In 2001 General Electric Co.
established a legal team in Gurgaon, India, with lawyers and paralegals who draft documents like contracts.
Bickel & Brewer, a 34-lawyer Dallas litigation firm, opened a facility in Hyderabad, India, in 1995. Several
hundred Indian employees - both lawyers and others - scan, code, index, and abstract documents. Bickel &
Brewer's offshore practice has been so successful, says partner William Brewer, that the firm spun it off as a
standalone company.
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While cost might be the most obvious incentive for outsourcing all types of Intellectual Property work to
India, a number of other motivating factors are cited. One is the 9-to-13-hour time difference between the
United States and India, which gives U.S. major the sense of operating on a 24-hour-basis. "When I go home
at six I can have them do the grunt work, research, and proofreading that I would otherwise have other people
do," says Solan Schwab, a New York-based solo practitioner who out sources research projects like analyzing
state-by-state insurance regulations with QuisLex, which has 12 lawyers in Hyderabad. "Then when I come to
office in the morning, I receive a beautiful e-mail with research done exactly how I like it."
Schwab sees outsourcing as the answer to the age-old dilemma facing solo practitioners: an erratic work flow
that doesn't justify the overhead of a full-time staff. He estimates that by outsourcing legal work, he spends
about one-third to one-half of what he would spend on hiring a full-time associate.
IP Practitioners say that the financial incentive of outsourcing work is the factor that most impresses their
customers. "None of my customers has opposed this because it saves them money," says Noah Henry
Simpson, of Simpson, Woolley, McConachie of Dallas. "It probably saves them at least half of what they
would usually pay." One would realize that outsourcing work to India is no different from outsourcing
scanning and coding of litigation documents to a vendor or legal work to a temporary lawyer in your own
country.
5.1 Outsourcing gives you:
 A technical and functional edge over your competitors - without capital investment
 Faster development and start up
 Lower cost
 Enhanced performance
 A better-managed e-business infrastructure
 Reliability
 Security
 A more effective operating environment at the backend
5.2 When to outsource?
 When you are too busy handling operations and are losing focus on your core business
 When you are facing a time, money and human resource crunch
 When you have a mission-critical project that needs all your time and energy, plus specialized
skills which aren't readily available
 When you have got to be the first into the market to gain the edge
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5.3 Where to outsource? India, of course!
Intel, IBM, Cisco, Yahoo, Amazon and Oracle find it works! Outsource to India for technological agility,
quality, flexibility, cost control, time-to-market and competitive advantage. India is an important location
and it is the only one in the developing world.
5.4 India offers multiple advantages
1. India is a talent-rich country.

2. India exports software to 95 countries around the globe and has expertise in global methodologies.
3. India enjoys the confidence of global corporations. 82% of the US companies ranked India as their
first choice for software outsourcing. Bill Gates says that India is an IT superpower. His Microsoft
has struck strategic alliances with WIPRO and Infosys to develop applications on the .Net platform.
Jack Welch has opened a $130 million Technology Center in Bangalore. GE's largest R&D center
outside the US has celebrated 10 years of GE Medical Systems in India.
4. India has state-of-the-art technologies for total solutions. Offshore assignments have moved up the
value chain - from data entry to large and complex turnkey projects.
5. The IT Act passed in 2000 brings E-commerce within the purview of law and provides for stringent
punishments to "cyber criminals". With this, India has joined a select band of 12 nations that have
cyber laws.
6. Software Technology Parks of India offer world-class infrastructure and various incentives and
concessions to encourage foreign investment and promote software development in India e.g. 100%
foreign equity is permitted and approved under the Automatic Route with tax holiday until 2010.
To top it, India has effectively provided efficient software solutions to Fortune 500 companies and there are
many global corporations which are relying on software companies in India like Citibank, Morgan Stanley,
Reebok, General Motors, Sony, Coca-Cola, Pepsi, Swissair, United Airlines, Philips et al.
It is not surprising that corporate giants in western countries like United States and Europe are increasingly
looking to India for cost-effective and high-quality support solutions. In fact, a World Bank-funded study in
the United States confirmed that vendors rated India as their number one choice for outsourcing. India has
invested heavily in education and can provide a ready supply of bright people in all fields at a relatively low
cost. A strong supply of high-quality talent, favorable government and tax incentives, and the ability to
complement U.S. time zones with a virtual around-the-clock approach are some of the advantages India has
to offer.
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1.5 Conceptualization
This project is based on Human Resource. In this project I will study the effectiveness of HR Outsourcing in
education sector. Outsourcing is subcontracting a service, such as product design or manufacturing, to a third-
party company. The decision whether to outsource or to do inhouse is often based upon achieving a lower
production cost, making better use of available resources, focusing energy on the core competencies of a
particular business, or just making more efficient use of labor, capital, information technology or land
resources.
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1.6 Focus of the Problem

 The main problem is to find out the effectiveness of HR Outsourcing in the education sector.
 The lectures delivered by the visiting faculties are helpful in increasing the knowledge of the
students.
 The guest lectures actually helps the students.
 The guest lectures leads to the satisfaction of students.
 The students are able to learn from the experts who are coming from outside the country.
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1.7 Objectives of the Study

The main objective of the research is to find out the effectiveness of HR Outsourcing in education sector.
 HR outsourcing in education sector can enhance the knowledge of the student.

 HR outsourcing in education sector can improve the satisfaction level of the students.
 It can reduce the cost or restructure the cost.
 It can enhance the capacity for innovation of the students.
 It can access to the talent.
 It can increase the performance level of the students.
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1.8 Hypotheses
A hypothesis is a proposed explanation for an observable phenomenon. The term derives from the Greek,
hyposthenia meaning "to put under" or "to suppose." For a hypothesis to be put forward as a scientific
hypothesis, the scientific method requires that one can test it. Scientists generally base scientific hypotheses
on previous observations that cannot be satisfactorily explained with the available scientific theories. Even
though the words "hypothesis" and "theory" are often used synonymously in common and informal usage, a
scientific hypothesis is not the same as a scientific theory – although the difference is sometimes more one of
degree than of principle.
A working hypothesis is a provisionally accepted hypothesis.
In a related but distinguishable usage, the term hypothesis is used for the antecedent of a proposition; thus in
proposition "If P, then Q", P denotes the hypothesis (or antecedent); Q can be called a consequent. P is the
assumption in a (possibly counterfactual) What If question.
The adjective hypothetical, meaning "having the nature of a hypothesis," or "being assumed to exist as an
immediate consequence of a hypothesis," can refer to any of these meanings of the term "hypothesis."
 H0: HR Outsourcing is effective in education sector.

 H1: HR Outsourcing is not effective in education sector.
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2 Research Methodology
Research is an academic activity and the term is used in a technical sense. According to Clifford, research
comprises defining and redefining problems, formulating hypothesis or suggested solution, collecting,
organizing and evaluating data making deductions and reaching conclusion, and at least carefully testing the
conclusions to determine whether they fit the formulating hypothesis.
Research methodology is a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically. In it we study the various steps, the research process
that is generally adopted to study the research problem and basic logics behind them. The basic steps in this
research are shown in the chart below
2.1 Research Design

The formidable problem that follows the task of defining the research problem is the preparation of design of
the research project, popularly known as the research design. Decisions regarding what, where, when, how
much, by what means concerns an inquiry or a research study constitute a research design".
A research design is the arrangement of condition for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure.
The research will be Exploratory in nature. Exploratory research studies are also termed as formulative
research studies. The main purpose of such studies is that of formulating a problem for more precise
investigation or to developing the working hypothesis from an operational point of view. The research design
was characterized by flexibility in order to be sensitive to the unexpected and to discover insight not
previously recognized.
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2.2 Universe & Survey Population
Population:
A population is a group of individuals’ persons, objects, or items from which samples are taken for
measurement for example a population of presidents or professors, books or students.
Universe:
 B schools of Sonipat
Sample: A sample is a finite part of a statistical population whose properties are studied to gain information
about the whole. When dealing with people, it can be defined as a set of respondents (people) selected from a
larger population for the purpose of a survey.
2.3 Sample
Sampling:
Sampling is the act, process, or technique of selecting a suitable sample, or a representative part of a
population for the purpose of determining parameters or characteristics of the whole population.
The desirability of a sampling procedure depends on both its vulnerability to error and its cost. However,
economy and reliability are competing ends, because, to reduce error often requires an increased expenditure
of resources. Of the two types of statistical errors, only sampling error can be controlled by exercising care in
determining the method for choosing the sample.
Sampling Type: Convenient sampling
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Sampling Unit: Individual

Sample Size: 60
2.4 Collection of Data
Method of collecting data

 Primary Data: The primary data will be collected by the students of B schools.
 Secondary Data: These will be extracted from existing literature in magazines, Internet, books,
newspapers, etc.
2.5 Analysis Pattern

Analysis of data refers to the analyzing and interpreting the data collected. The data analyzed & interpret with
the help of graphs, table, bar & pie charts etc.
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3 Organization of the Study
Education
Education in its broadest sense is any act or experience that has a formative effect on the mind, character or
physical ability of an individual. In its technical sense education is the process by which society deliberately
transmits its accumulated knowledge, skills and values from one generation to another.
Teachers in educational institutions direct the education of students and might draw on many subjects,
including reading, writing, mathematics, science and history. This process is sometimes called schooling
when referring to the education of teaching only a certain subject, usually as professors at institutions of
higher learning. There is also education in fields for those who want specific vocational skills, such as those
required to be a pilot. In addition there is an array of education possible at the informal level, such as in
museums and libraries, with the Internet and in life experience. Many non-traditional education options are
now available and continue to evolve.
The right to education has been established as a basic human right: since 1952, Article 2 of the first Protocol
to the European Convention on Human Rights obliges all signatory parties to guarantee the right to education.
3.1 Systems of formal education
Education is a concept, referring to the process in which students can learn something:
• Instruction refers to the facilitating of learning toward identified objectives, delivered either by an
instructor or other forms.
• Teaching refers to the actions of a real live instructor designed to impart learning to the student.
• Learning refers to learning with a view toward preparing learners with specific knowledge, skills, or
abilities that can be applied immediately upon completion.By:Brittany Marie Tucker-Spears
3.1.1 Primary education
Primary (or elementary) education consists of the first 5-7 years of formal, structured education. In general,
main education consists of six or eight years of schooling starting at the age of five or six, although this varies
between, and sometimes within, countries. Globally, around 70% of primary-age children are enrolled in
primary education, and this proportion is rising. Under the Education for All programs driven by UNESCO,
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most countries have committed to achieving universal enrollment in primary education by 2015, and in many
countries, it is compulsory for children to receive primary education. The division between primary and
secondary education is somewhat arbitrary, but it generally occurs at about eleven or twelve years of age.
Some education systems have separate middle schools, with the transition to the final stage of secondary
education taking place at around the age of fourteen. Schools that provide primary education, are mostly
referred to as primary schools. Primary schools in these countries are often subdivided into infant schools and
junior schools.
3.1.2 Secondary education
In most contemporary educational systems of the world, secondary education comprises the formal education
that occur during adolescence. It is characterized by transition from the typically compulsory, comprehensive
primary education for minors, to the optional, selective tertiary, "post-secondary", or "higher" education (e.g.,
university, vocational school) for adults. Depending on the system, schools for this period, or a part of it, may
be called secondary or high schools, gymnasiums, lyceums, middle schools, colleges, or vocational schools.
The exact meaning of any of these terms varies from one system to another. The exact boundary between
primary and secondary education also varies from country to country and even within them, but is generally
around the seventh to the tenth year of schooling. Secondary education occurs mainly during the teenage
years. In the United States and Canada primary and secondary education together are sometimes referred to as
K-12 education, and in New Zealand Year 1-13 is used. The purpose of secondary education can be to give
common knowledge, to prepare for higher education or to train directly in a profession.
The emergence of secondary education in the United States did not happen until 1910, caused by the rise in
big businesses and technological advances in factories (for instance, the emergence of electrification), that
required skilled workers. In order to meet this new job demand, high schools were created and the curriculum
focused on practical job skills that would better prepare students for white collar or skilled blue collar work.
This proved to be beneficial for both the employer and the employee, because this improvement in human
capital caused employees to become more efficient, which lowered costs for the employer, and skilled
employees received a higher wage than employees with just primary educational attainment.
In Europe, the grammar school or academy existed from as early as the 1500s; public schools or fee paying
schools, or charitable educational foundations have an even longer history.
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3.1.3 Higher education
Higher education, also called tertiary, third stage, or post secondary education, is the non-compulsory
educational level that follows the completion of a school providing a secondary education, such as a high
school, secondary school. Tertiary education is normally taken to include undergraduate and postgraduate
education, as well as vocational education and training. Colleges and universities are the main institutions that
provide tertiary education. Collectively, these are sometimes known as tertiary institutions. Tertiary education
generally results in the receipt of certificates, diplomas, or academic degrees.
Higher education includes teaching, research and social services activities of universities, and within the
realm of teaching, it includes both the undergraduate level (sometimes referred to as tertiary education) and
the graduate (or postgraduate) level (sometimes referred to as graduate school). Higher education generally
involves work towards a degree-level or foundation degree qualification. In most developed countries a high
proportion of the population (up to 50%) now enter higher education at some time in their lives. Higher
education is therefore very important to national economies, both as a significant industry in its own right,
and as a source of trained and educated personnel for the rest of the economy.
3.1.4 Adult education
Adult education has become common in many countries. It takes on many forms, ranging from formal class-
based learning to self-directed learning and e-learning. A number of career specific courses such as
veterinary, medical billing and coding, real estate license, bookkeeping and many more are now available to
students through the Internet.
3.1.5 Alternative education
Alternative education, also known as non-traditional education or educational alternative, is a broad term that
may be used to refer to all forms of education outside of traditional education (for all age groups and levels of
education). This may include not only forms of education designed for students with special needs (ranging
from teenage pregnancy to intellectual disability), but also forms of education designed for a general audience
and employing alternative educational philosophies and methods.
Alternatives of the latter type are often the result of education reform and are rooted in various philosophies
that are commonly fundamentally different from those of traditional compulsory education. While some have
strong political, scholarly, or philosophical orientations, others are more informal associations of teachers and
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students dissatisfied with certain aspects of traditional education. These alternatives, which include charter
schools, alternative schools, independent schools, and home-based learning vary widely, but often emphasize
the value of small class size, close relationships between students and teachers, and a sense of community.
3.1.6 Indigenous education
Increasingly, the inclusion of indigenous models of education (methods and content) as an alternative within
the scope of formal and non-formal education systems, has come to represent a significant factor contributing
to the success of those members of indigenous communities who choose to access these systems, both as
students/learners and as teachers/instructors.
As an educational method, the inclusion of indigenous ways of knowing, learning, instructing, teaching and
training, has been viewed by many critical and postmodern scholars as important for ensuring that
students/learners and teachers/instructors (whether indigenous or non-indigenous) are able to benefit from
education in a culturally sensitive manner that draws upon, utilizes, promotes and enhances awareness of
indigenous traditions.
For indigenous students or learners, and teachers or instructors, the inclusion of these methods often enhances
educational effectiveness, success and learning outcomes by providing education that adheres to their own
inherent perspectives, experiences and worldview. For non-indigenous students and teachers, education using
such methods often has the effect of raising awareness of the individual traditions and collective experience
of surrounding indigenous communities and peoples, thereby promoting greater respect for and appreciation
of the cultural realities of these communities and peoples.
In terms of educational content, the inclusion of indigenous knowledge, traditions, perspectives, worldviews
and conceptions within curricula, instructional materials and textbooks and coursebooks have largely the
same effects as the inclusion of indigenous methods in education. Indigenous students and teachers benefit
from enhanced academic effectiveness, success and learning outcomes, while non-indigenous
students/learners and teachers often have greater awareness, respect, and appreciation for indigenous
communities and peoples in consequence of the content that is shared during the course of educational
pursuits.
A prime example of how indigenous methods and content can be used to promote the above outcomes is
demonstrated within higher education in Canada. Due to certain jurisdictions' focus on enhancing academic
success for Aboriginal learners and promoting the values of multiculturalism in society, the inclusion of
indigenous methods and content in education is often seen as an important obligation and duty of both
governmental and educational authorities.
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3.2 Process
3.2.1 Curriculum
An academic discipline is a branch of knowledge which is formally taught, either at the university, or via
some other such method. Each discipline usually has several sub-disciplines or branches, and distinguishing
lines are often both arbitrary and ambiguous. Examples of broad areas of academic disciplines include the
natural sciences, mathematics, computer science, social sciences, humanities and applied sciences.
3.2.2 Learning modalities
There has been work on learning styles over the last two decades. Dunn and Dunn focused on identifying
relevant stimuli that may influence learning and manipulating the school environment, at about the same time
as Joseph Renzulli recommended varying teaching strategies. Howard Gardner identified individual talents or
aptitudes in his Multiple Intelligences theories. Based on the works of Jung, the Myers-Briggs Type Indicator
and Keirsey Temperament Sorter focused on understanding how people's personality affects the way they
interact personally, and how this affects the way individuals respond to each other within the learning
environment. The work of David Kolb and Anthony Gregorc's Type Delineator follows a similar but more
simplified approach.
It is currently fashionable to divide education into different learning "modes". The learning modalities are
probably the most common:
• Visual: learning based on observation and seeing what is being learned.

• Auditory: learning based on listening to instructions/information.
• Kinesthetic: learning based on hands-on work and engaging in activities.
It is claimed that, depending on their preferred learning modality, different teaching techniques have different
levels of effectiveness. A consequence of this theory is that effective teaching should present a variety of
teaching methods which cover all three learning modalities so that different students have equal opportunities
to learn in a way that is effective for them. Guy Claxton has questioned the extent that learning styles such as
VAK are helpful, particularly as they can have a tendency to label children and therefore restrict learning.
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3.2.3 Teaching
Teachers need to understand a subject enough to convey its essence to students. While traditionally this has
involved lecturing on the part of the teacher, new instructional strategies such as team-based learning put the
teacher more into the role of course designer, discussion facilitator, and coach and the student more into the
role of active learner, discovering the subject of the course. In any case, the goal is to establish a sound
knowledge base and skill set on which students will be able to build as they are exposed to different life
experiences. Good teachers can translate information, good judgment, experience and wisdom into relevant
knowledge that a student can understand, retain and pass to others. Studies from the US suggest that the
quality of teachers is the single most important factor affecting student performance, and that countries which
score highly on international tests have multiple policies in place to ensure that the teachers they employ are
as effective as possible.
3.2.4 Technology
Technology is an increasingly influential factor in education. Computers and mobile phones are used in
developed countries both to complement established education practices and develop new ways of learning
such as online education (a type of distance education). This gives students the opportunity to choose what
they are interested in learning. The proliferation of computers also means the increase of programming and
blogging. Technology offers powerful learning tools that demand new skills and understandings of students,
including Multimedia, and provides new ways to engage students, such as Virtual learning environments.
Technology is being used more not only in administrative duties in education but also in the instruction of
students. The use of technologies such as PowerPoint and interactive whiteboard is capturing the attention of
students in the classroom. Technology is also being used in the assessment of students. One example is the
Audience Response System (ARS), which allows immediate feedback tests and classroom discussions.
Information and communication technologies (ICTs) are a “diverse set of tools and resources used to
communicate, create, disseminate, store, and manage information.” These technologies include computers,
the Internet, broadcasting technologies (radio and television), and telephony. There is increasing interest in
how computers and the Internet can improve education at all levels, in both formal and non-formal settings.
Older ICT technologies, such as radio and television, have for over forty years been used for open and
distance learning, although print remains the cheapest, most accessible and therefore most dominant delivery
mechanism in both developed and developing countries.
The use of computers and the Internet is in its infancy in developing countries, if these are used at all, due to
limited infrastructure and the attendant high costs of access. Usually, various technologies are used in
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combination rather than as the sole delivery mechanism. For example, the Kothmale Community Radio
Internet uses both radio broadcasts and computer and Internet technologies to facilitate the sharing of
information and provide educational opportunities in a rural community in Sri Lanka. The Open University of
the United Kingdom (UKOU), established in 1969 as the first educational institution in the world wholly
dedicated to open and distance learning, still relies heavily on print-based materials supplemented by radio,
television and, in recent years, online programming. Similarly, the Indira Gandhi National Open University in
India combines the use of print, recorded audio and video, broadcast radio and television, and audio
conferencing technologies.
The term "computer-assisted learning" (CAL) has been increasingly used to describe the use of technology in
teaching.
3.3 Educational theory
Education theory is the theory of the purpose, application and interpretation of education and learning. Its
history begins with classical Greek educationalists and sophists and includes, since the 18th century,
pedagogy and andragogy. In the 20th century, "theory" has become an umbrella term for a variety of
scholarly approaches to teaching, assessment and education law, most of which are informed by various
academic fields, which can be seen in the below sections.
3.4 Economics
It has been argued that high rates of education are essential for countries to be able to achieve high levels of
economic growth. Empirical analyses tend to support the theoretical prediction that poor countries should
grow faster than rich countries because they can adopt cutting edge technologies already tried and tested by
rich countries. However, technology transfer requires knowledgeable managers and engineers who are able to
operate new machines or production practices borrowed from the leader in order to close the gap through
imitation. Therefore, a country's ability to learn from the leader is a function of its stock of "human capital."
Recent study of the determinants of aggregate economic growth have stressed the importance of fundamental
economic institutions and the role of cognitive skills.
At the individual level, there is a large literature, generally related back to the work of Jacob Mincer, on how
earnings are related to the schooling and other human capital of the individual. This work has motivated a
large number of studies, but is also controversial. The chief controversies revolve around how to interpret the
impact of schooling.
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Economists Samuel Bowles and Herbert Ginits famously argued in 1976 that there was a fundamental
conflict in American schooling between the egalitarian goal of democratic participation and the inequalities
implied by the continued profitability of capitalist production on the other.
3.5 History
The history of education according to Dieter Lenzen, president of the Freie Universität Berlin 1994 "began
either millions of years ago or at the end of 1770". Education as a science cannot be separated from the
educational traditions that existed before. Adults trained the young of their society in the knowledge and
skills they would need to master and eventually pass on. The evolution of culture, and human beings as a
species depended on this practice of transmitting knowledge. In pre-literate societies this was achieved orally
and through imitation. Story-telling continued from one generation to the next. Oral language developed into
written symbols and letters. The depth and breadth of knowledge that could be preserved and passed soon
increased exponentially. When cultures began to extend their knowledge beyond the basic skills of
communicating, trading, gathering food, religious practices, etc, formal education, and schooling, eventually
followed. Schooling in this sense was already in place in Egypt between 3000 and 500BC.
Nowadays some kind of education is compulsory to all people in most countries. Due to population growth
and the proliferation of compulsory education, UNESCO has calculated that in the next 30 years more people
will receive formal education than in all of human history thus far.
3.6 Philosophy
Philosophy of education is the philosophical study of the purpose, process, nature and ideals of education.
Philosophy of education can naturally be considered a branch of both philosophy and education. Philosophy
of education is commonly housed in colleges and departments of education, yet it is applied philosophy,
drawing from the traditional fields of philosophy (ontology, ethics, epistemology, etc.) and approaches
(speculative, prescriptive, and/or analytic) to address questions regarding education policy, human
development, education research methodology, and curriculum theory, to name a few.
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3.7 Psychology
Educational psychology is the study of how humans learn in educational settings, the effectiveness of
educational interventions, the psychology of teaching, and the social psychology of schools as organizations.
Although the terms "educational psychology" and "school psychology" are often used interchangeably,
researchers and theorists are likely to be identified as educational psychologists, whereas practitioners in
schools or school-related settings are identified as school psychologists. Educational psychology is concerned
with the processes of educational attainment in the general population and in sub-populations such as gifted
children and those with specific disabilities.
Educational psychology can in part be understood through its relationship with other disciplines. It is
informed primarily by psychology, bearing a relationship to that discipline analogous to the relationship
between medicine and biology. Educational psychology in turn informs a wide range of specialities within
educational studies, including instructional design, educational technology, curriculum development,
organizational learning, special education and classroom management. Educational psychology both draws
from and contributes to cognitive science and the learning sciences.
3.8 Sociology
The sociology of education is the study of how social institutions and forces affect educational processes and
outcomes, and vice versa. By many, education is understood to be a means of overcoming handicaps,
achieving greater equality and acquiring wealth and status for all (Sargent 1994). Learners may be motivated
by aspirations for progress and betterment. Education is perceived as a place where children can develop
according to their unique needs and potentialities. The purpose of education can be to develop every
individual to their full potential. The understanding of the goals and means of educational socialization
processes differs according to the sociological paradigm used.
3.9 Educational Development
In developing countries, the number and seriousness of the problems faced are naturally greater. People in
more remote or agrarian areas are sometimes unaware of the importance of education. However, many
countries have an active Ministry of Education, and in many subjects, such as foreign language learning, the
degree of education is actually much higher than in industrialized countries; for example, it is not at all
uncommon for students in many developing countries to be reasonably fluent in multiple foreign languages,
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whereas this is much more of a rarity in the supposedly "more educated" countries where much of the
population is in fact monolingual.
There is also economic pressure from those parents who prefer their children making money in the short term
over any long-term benefits of education. Recent studies on child labor and poverty have suggested that when
poor families reach a certain economic threshold where families are able to provide for their basic needs,
parents return their children to school. This has been found to be true, once the threshold has been breached,
even if the potential economic value of the children's work has increased since their return to school.
A lack of good universities, and a low acceptance rate for good universities, is evident in countries with a
high population density. In some countries, there are uniform, over structured, inflexible centralized programs
from a central agency that regulates all aspects of education.
• Due to globalization, increased pressure on students in curricular activities

• Removal of a certain percentage of students for improvisation of academics (usually practised in
schools, after 10th grade)
India is now developing technologies that will skip land based phone and internet lines. Instead, India
launched EDUSAT, an education satellite that can reach more of the country at a greatly reduced cost. There
is also an initiative started by the OLPC foundation, a group out of MIT Media Lab and supported by several
major corporations to develop a $100 laptop to deliver educational software. The laptops are widely available
as of 2009. The laptops are sold at cost or given away based on donations. These will enable developing
countries to give their children a digital education, and help close the digital divide across the world.
In Africa, NEPAD has launched an "e-school programme" to provide all 600,000 primary and high schools
with computer equipment, learning materials and internet access within 10 years. Private groups, like The
Church of Jesus Christ of Latter-day Saints, are working to give more individuals opportunities to receive
education in developing countries through such programs as the Perpetual Education Fund. An International
Development Agency project called nabuur.com, started with the support of American President Bill Clinton,
uses the Internet to allow co-operation by individuals on issues of social development.
3.9.1 Internationalisation
Education is becoming increasingly international. Not only are the materials becoming more influenced by
the rich international environment, but exchanges among students at all levels are also playing an increasingly
important role. In Europe, for example, the Socrates-Erasmus Programme stimulates exchanges across
European universities. Also, the Soros Foundation provides many opportunities for students from central Asia
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and eastern Europe. Some scholars argue that, regardless of whether one system is considered better or worse
than another, experiencing a different way of education can often be considered to be the most important,
enriching element of an international learning experience.
3.9.2 Religion and Education
In Islam education is very important for both males and females, particularly young children. Contrary to
common perception, the seeking of all types of knowledge - be it academic, vocational, religious or secular -
is encouraged at all ages. However, learning at an early age is thought to allow the mind to concentrate
without the stresses and responsibilities of later adult life.
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4 Data Analysis & Interpretation
4.1 Questionnaire Analysis

Ques1: Are you satisfy with the employment which exists in your institute
Type of Highly Satisfied Dissatisfied Highly

employment Satisfied Dissatisfied
Permanent full 38 15 5 6
time
Permanent part 12 36 7 5
time
Contractual full 20 18 22 6
time
Contractual part 14 20 17 9
time
Casual 5 25 18 13
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Interpretation:- 38 students are highly satisfied with the permanent full time faculty.
36 students are satisfied with the permanent part time faculty.
22 students are dissatisfied with the Contractual full time faculty.
20 students are satisfied with the Contractual part time faculty.
25 students are satisfied with the Casual faculty.
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Ques2: Are you aware about the concept of Outsourcing?
Basis No. of respondent

Fully aware 50
Partial aware 10
Not aware 0
Interpretation:- 50 students are fully aware about the concept of outsourcing.
10 students are partial aware about the concept of outsourcing.
Ques3: What is the level of outsourcing activities in your college?
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0-25% 16
25-50% 33
50-75% 10
75-100% 1
Interpretation:- 33 respondents said that 25-50% activities are outsourced in their college.
16 respondents said that 0-25% activities are outsourced in their college.
10 respondents said that 50-75% activities are outsourced in their college.
Ques4: According to you outsourcing is beneficial for institute?
Benefits Highly Satisfied Average Dissatisfied Highly

Satisfied Dissatisfied
Cost savings 37 14 7 1 3
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Knowledge 34 20 6 0 0
Contract 20 16 15 8 2
Improve quality 25 25 10 0 1
Interpretation:- 37 respondents said that the outsourcing is helpful in cost saving.
34 respondents said that the outsourcing is helpful in increasing the knowledge.
35 respondents said that the outsourcing is helpful in improving the quality.
Ques5: Is it helps in increasing the performance of students?
Performance Strongly Agree Agree Average Disagree Strongly

Disagree
Increase in knowledge 43 14 2 2 0
Increase in confidence 19 33 5 1 0
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Enhance capacity for 24 18 14 4 2

innovation
Access to talent 24 16 11 7 2
Interpretation:- 43 respondents said that outsourcing is helpful in increasing the knowledge.
33 respondents said that outsourcing is helpful in increasing the confidence.
24 respondents said that outsourcing is helpful in enhancing capacity for innovation.
24 respondents said that outsourcing is helpful in accessing the talent.
Ques6: Is it helps in increasing the satisfaction level of students?

0-25% 1
25-50% 14
50-75% 33
75-100% 12
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Interpretation:- 33 respondents said that 50-75% of satisfaction level enhanced due to outsourcing.
14 respondents said that 25-50% of satisfaction level enhanced due to outsourcing.
12 respondents said that 75-100% of satisfaction level enhanced due to outsourcing.
Ques7: Fixed term versus permanent employee ratio in the institute

0-25% 21
25-50% 21
50-75% 18
75-100% 2
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Interpretation:- 21 respondents said that 0-25% & 25-50% is the ratio of fixed term versus permanent
employee.
18 respondents said that 50-75% is the ratio of fixed term versus permanent employee.
Ques8: Does the institute currently have outsourced manpower?

Yes 51
No 9
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Interpretation:- 51 respondents said that the institute currently have outsourced manpower.
9 respondents said that the institute currently has outsourced manpower.
Ques9: What reasons lead Education sector to adopt outsourcing?

Shortage of Manpower 21
Cost restructuring 21
Commodification 11
Contract 7
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Interpretation:- 21 respondents said that Cost restructuring, Shortage of Manpower lead education sector to
adopt outsourcing.
11 respondents said that Commodification lead education sector to adopt outsourcing.
7 respondents said that Contract lead education sector to adopt outsourcing.
Ques10: What is the nature of provision on outsourcing? Are they binding? Are they recommendation?

Binding 10
Recommendation 22
Requirement of today’s era 15
Gaining Competitive advantage 13
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Interpretation:- 22 respondents said that nature of outsourcing is recommendation.
15 respondents said that it is the requirement of today’s era.
13 respondents said that it is the requirement of gaining competitive advantage.
Ques11: What activities are outsourced by the college?

Training 13
Development 6
Lectures 28
Seminars 13
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Interpretation:- 28 respondents said that lectures are outsourced by the college.

13 respondents said that training and seminars are outsourced by the college.
6 respondents said that developmental activities are outsourced by the college.
Ques12: On a 5-point scale state what have been the trends in use of HRO in the past 3-
5 years
1 2 3 4 5
Increased Marginal Increase Remained the Marginal Decrease Decreased
same
22 27 7 2 2
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Interpretation:- 27 respondents said that there is a marginal increase in the HRO.

22 respondents said that there is an increase in the HRO.
Ques13: Do you think Outsourcing has influenced a change in the careers of students
today?

Strongly Agree 21
Agree 36
Disagree 2
Strongly Disagree 1
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Interpretation:- 36 no. of respondents are agree that Outsourcing has influenced a

change in the careers of students today.
21 no. of respondents are strongly agree that Outsourcing has influenced a change in
the careers of students today.
Ques14: In terms of providing Outsourcing services in education sector, which of the

following are simple to provide and which among these is complicated?
How effective are you in Simples Simple Neutra Complicat Most

t l ed Complicat
ed
Increasing the strategic 13 24 12 8 4
ability of the student of the
institute
Establishing a good 4 28 13 8 8
rapport/trust with the
student
Improving the self- 19 15 13 4 10
confidence of the students
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Interpretation:- 24 respondents said that it is simple in Increasing the strategic

ability of the student of the institute.
28 respondents said that it is simple in Establishing a good rapport/trust with the
student.
19 respondents said that it is simplest in Improving the self-confidence of the students.
4.2 SWOT Analysis
4.2.1 Strengths
The study tells that outsourcing helps in education sector by different ways. Some of these are as follows:
 Cost saving
 Increase knowledge
 Enhance capacity for innovation of students
 Easy in establishing good raport with the students
4.2.2 Weaknesses
 The respondents may not give right information so there may be difference in the findings as
compared with reality.
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 The project is based on the primary as well as secondary data so there should be change in the
concept of outsourcing in today’s scenario.
4.2.3 Opportunities
 It helps in knowing how the outsourcing works in the education sector.
 It helps in knowing the effectiveness of the outsourcing.
 It is helpful in gaining competitive advantage.
4.2.4 Threats
 The interaction time of fascilitator and students is low.
 The fascilitator may disguise the students.
 There may be quality problem.
 The immediate affects of outsourcing such as lay-offs as well as the shifting of the employment
activities.
4.3 Case Study Analysis
LEEDS MET INDIA, BHOPAL
ABSTRACT
Outsourcing has helped many industries reduce costs and increase profits. But businesses have not yet been
able to convey the real-time benefits of outsourcing. This has led to increased sensitivity to the outsourcing of
jobs, which have seemingly led to loss of employment opportunities in the local economic system.
“Seemingly” as this is not the case. For short while it may seem that people are losing their jobs to
outsourcing, but in the long run, as profits rise, the economy improves and with that new jobs are created.
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OUTSOURCING
Outsourcing is often defined as the delegation of non-core operations or jobs from internal production to an
external entity that specializes in that operation. Outsourcing is a business decision that is often made to focus
on core competences. It also implies transferring jobs to another country, either by hiring local subcontractors
or building a facility in an area where labor is cheap. It became a popular buzzword in business and
management in the 1990s. Outsourcing has really made its mark in the business entities. The decision to
outsource is like the decision to expand a business overseas, to incorporate computer technology, or to hire
new workers. Outsourcing can change the way companies do business-through people, process and
technology. Whether B2B or B2C, whether SMS’s or large diversified companies or small home offices,
every company can leverage the power of outsourcing for business transformation. Lately however, the
concept of outsourcing has been criticized. The negative attitude towards
Outsourcing have been mostly discussed by masses in the US and UK, due to unemployment in the
mentioned countries. People in countries like the US, feel that outsourcing is threat to their economy.
Economist Thomas Sowell from the University of Chicago said “anything that increases economic efficiency,
whether by outsourcing or a hundred other things, is likely to cost somebody's job. There are other problems
too.
Problem of unemployment
It cannot be denied that the immediate affects of outsourcing such as lay-offs as well as the shifting of
production and jobs to foreign locations causes problems for both low and high-end employees.
Quality problem
As "outsourced" workers are not the paid agents of the company, it is argued that there is less incentive for
the agent to show loyalty or work ethic in its representation of said Company. It has been therefore argued
that quality levels of customer service and technical support of outsourced tasks are lower than where they
have remained 'in-house'.
Other problems
These include unfavorable contract lengths, loss of competitive edge, problems in contract renewal,
contractual misunderstandings, foreign accents and irritated customers, unions, employees etc. But this trend
is not entirely damaging, there several marked benefits associated with it.
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Focus on core business
Back office operations of a company require high maintenance and specialized attention. Yet most of them
are critical for the company's everyday activities. By outsourcing their back office operations businesses can
concentrate on their core competencies while their back office operations are being managed smoothly by a
specialized third party company.
Cost and Efficiency saving
Lowering the overall cost of the service to the business. This involves defining quality levels, repricing, re-
negotiation and cost-restructuring.
Staffing Flexibility
Access to larger talent pool and sustainable source of skills. This increase quality as well as quantity of
goods.
Increase in Business
By employing skilled manpower in larger numbers at lower costs companies can really increase their
productivity. This in turn would result in better customer satisfaction and increased profitability.
Competitive Advantage
In today’s fast paced global economy a company needs to provide high-quality services at cheap prices to its
customers in order to retain them. Outsourcing in this case can help the company maintain lower rates with
better service solutions, thereby giving them a better market position.
Tax Benefits
By selecting the right BPO destination companies can save up on taxes and can improve their margins. The
Outsourcing market is estimated to grow tremendously in the coming years with an increasing number of
companies planning to outsource and as the number of companies are rising, there will be large variety and
less risks as businesses will have more experience and clearer objectives.
CONCLUSION
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As competition is increasing day by day, outsourcing is becoming need of the hour. To remain competitive a
company needs to maintain both quality and low prices and outsourcing is the best way out to handle this
situation. Though in short run, outsourcing seems damaging for people in developed countries but in long run
the overall economy improves and new jobs are also created.
4.3.1 Summary
Outsourcing has helped many industries reduce costs and increase profits. But businesses have not yet been
able to convey the real-time benefits of outsourcing. This has led to increased sensitivity to the outsourcing of
jobs, which have seemingly led to loss of employment opportunities in the local economic system.
“Seemingly” as this is not the case. For short while it may seem that people are losing their jobs to
outsourcing, but in the long run, as profits rise, the economy improves and with that new jobs are created.
Outsourcing is often defined as the delegation of non-core operations or jobs from internal production to an
external entity that specializes in that operation. Outsourcing is a business decision that is often made to focus
on core competences. It also implies transferring jobs to another country, either by hiring local subcontractors
or building a facility in an area where labor is cheap. It became a popular buzzword in business and
management in the 1990s. Outsourcing has really made its mark in the business entities. The decision to
outsource is like the decision to expand a business overseas, to incorporate computer technology, or to hire
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new workers. Outsourcing can change the way companies do business-through people, process and
technology. Whether B2B or B2C, whether SMS’s or large diversified companies or small home offices,
every company can leverage the power of outsourcing for business transformation. Lately however, the
concept of outsourcing has been criticized. The negative attitude towards
outsourcing have been mostly discussed by masses in the US and UK, due to unemployment in the mentioned
countries. People in countries like the US, feel that outsourcing is threat to their economy. Economist Thomas
Sowell from the University of Chicago said “anything that increases economic efficiency, whether by
outsourcing or a hundred other things, is likely to cost somebody's job. There are other problems too.
outsourcing such as lay-offs as well as the shifting of production and jobs to foreign locations causes
problems for both low and high-end employees.
As "outsourced" workers are not the paid agents of the company, it is argued that there is less incentive for
the agent to show loyalty or work ethic in its representation of said Company. It has been therefore argued
that quality levels of customer service and technical support of outsourced tasks are lower than where they
have remained 'in-house'.
Back office operations of a company require high maintenance and specialized attention. Yet most of them
are critical for the company's everyday activities. By outsourcing their back office operations
businesses can concentrate on their core competencies while their back office operations are being managed
smoothly by a specialized third party company. Cost and Efficiency saving. By employing skilled manpower
in larger numbers at lower costs companies can really increase their productivity.
In today’s fast paced global economy a company needs to provide high-quality services at cheap prices to its
customers in order to retain them.
By selecting the right BPO destination companies can save up on taxes and can improve their margins. The
Outsourcing market is estimated to grow tremendously in the coming years with an increasing number of
companies planning to outsource and as the number of companies are rising, there will be large variety and
less risks as businesses will have more experience and clearer objectives.
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4.3.2 Fact Analysis

 Outsourcing has helped many industries reduce costs and increase profits
 Real-time benefits of outsourcing
 Delegation of non-core operations or jobs from internal production to an external entity that
specializes in that operation.
 Problem of unemployment
 Quality problem
 Focus on core business
 Cost and Efficiency saving
 Staffing Flexibility
 Increase in Business
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 Competitive Advantage
 Tax Benefits
4.3.3 SWOT Analysis

Strength:-
 Cost and Efficiency saving
 Staffing Flexibility
 Tax Benefits
Weakness:-
 Problem of unemployment
 Quality problem
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Threats:-
 Failure of outsourcing activities
 Increase in the cost
Opportunity:-
4.3.4 Problem Solving – Primary Issues & Secondary Issues
Primary Issues:-
 The immediate affects of outsourcing such as lay-offs as well as the shifting of production and jobs
to foreign locations causes problems for both low and high-end employees.
 As "outsourced" workers are not the paid agents of the company, it is argued that there is less
incentive for the agent to show loyalty or work ethic in its representation of said Company.
 It has been therefore argued that quality levels of customer service and technical support of
outsourced tasks are lower than where they have remained 'in-house'.
Secondary Issues:-
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These include
 Unfavorable contract lengths
 Loss of competitive edge
 Problems in contract renewal
 Contractual misunderstandings
 Foreign accents and irritated customers, unions, employees etc.
4.3.5 Recommendations and Suggestions

 The activities should be outsourced to increase the quality.
 The length of contract should be favorable.
 There should be no any problems in contract renewal.
 There should be no any loss of competitive edge.
 There should not be any contractual misunderstanding.
 The main focus should be on quality improvement.
 There should not be any problem of unemployment due to outsourcing.
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4.3.6 Conclusion
• This has led to increased sensitivity to the outsourcing of jobs, which have seemingly led to loss of
employment opportunities in the local economic system.
• Outsourcing is often defined as the delegation of non-core operations or jobs from internal
production to an external entity that specializes in that operation.
• Outsourcing is a business decision that is often made to focus on core competences. It also implies
transferring jobs to another country, either by hiring local subcontractors or building a facility in an
area where labor is cheap.
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• As "outsourced" workers are not the paid agents of the company, it is argued that there is less
incentive for the agent to show loyalty or work ethic in its representation of said Company.
• By selecting the right BPO destination companies can save up on taxes and can improve their
margins.
• There will be large variety and less risks as businesses will have more experience and clearer
objectives.
4.4 PESTE Analysis
PESTE analysis is concerned with the environmental influences on a business.
The acronym stands for the Political, Economic, Social and Technological issues that could affect the
strategic development of a business.
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Identifying PESTE influences is a useful way of summarising the external environment in which a business
operates. However, it must be followed up by consideration of how a business should respond to these
influences.
PESTE analysis is a useful tool for understanding the “big picture” of the environment in which you are
operating, and the opportunities and threats that lie within it. By understanding the environment in which you
operate (external to your company or department), you can take advantage of the opportunities and minimize
the threats.
Specifically the PESTE analysis is a useful tool for understanding risks associated with market growth or
decline, and as such the position, potential and direction for a business or organization.
4.4.1 Political/Legal Environment

 Environmental regulation and protection
 Employment
 Government organisation / attitude
 Competition regulation
4.4.2 Economic Environment

 Exchange rates
 Policy towards unemployment
 Government spending
 Economic growth
4.4.3 Socio-Cultural Environment

 Income distribution
 Demographics
 Labour / social mobility
 Attitudes to work and leisure
 Education
4.4.4 Technological Environment

 Internet
 Impact of changes in Information technology
 Energy use and costs
 New discoveries and development
 Government spending on research
 Government and industry focus on technological effort
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5 Limitations of the Study

 The period of study is very short.
 Less control over how tasks are completed.
 Open access to sensitive information.
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 Data provided by the students is not always accurate.
 Lack of attention paid by the students.
 Getting information from the students of different B school is a tedious and time taking task.
 The universe selected was Sonipat district. So, the outcome of the study may not be generalized.
6 Conclusion
 All the B school prefer outsourcing.
 It is helpful in cost saving.
 It is beneficial to increase the knowledge of the students.
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 It is helpful in increasing the competence level of the student.

 It is simple in establishing a good rapport/trust with the student.
 It is simplest in improving the self-confidence of the students.
 It is simple in increasing the strategic ability of the student of the institute.
 There is a marginal increase in the Human Resource Outsourcing.
 There is an increase in the Human Resource Outsourcing.
 Cost restructuring, Shortage of Manpower lead education sector to adopt outsourcing.
 Outsourcing has influenced a change in the careers of students today.
 Lectures are outsourced by the college.
 Training and seminars are outsourced by the college.
 The developmental activities are outsourced by the college.
 It is the requirement of gaining competitive advantage.
 It is helpful in increasing the knowledge.
 It is helpful in increasing the confidence.
 Outsourcing is helpful in enhancing capacity for innovation.
 Outsourcing is helpful in accessing the talent.
 The outsourcing is helpful in cost saving.
 The outsourcing is helpful in increasing the knowledge.
 The outsourcing is helpful in improving the quality.
7 Suggestions & Recommendations

 Area of outsourcing activities should be increased.
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 Make the outsourcing activities more attractive.

 Make a preplanning for the outsourcing to gain competitive advantage.
 The main focus while outsourcing the activities should be on quality not on quantity.
 The fascilitator should have knowledge about the concept.
 The fascilitator should maintain good rapport with the student.
 The fascilitator should access the talent.
 The fascilitator should be helpful in increasing the satisfaction level as well as performance
of the students.
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8 Bibliography
 en.wikipedia.org/wiki/Education
 www.answers.com/topic/educationsimple
 .wikipedia.org/wiki/Higher_education
 forums.hardwarezone.com.sg/archive/index.php/t-2608671.html
 www.buyerzone.com ›
 humanresources.about.com/cs/strategichr/a/outsourcing.htm
 www.hr.com/ - United States
 beakware.com/resources/default.php
 www.humanresourcesiq.comen
 wikipedia.org/wiki/Human_resources
 Research Methodology – C.R.Kothari
 Human Resource Management – K.Aswathapa
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9 Annexure
Questionnaire on Outsourcing in Education Sector
Name:
Course:
Contact No.:
College Name:
Ques1: Are you satisfy with the employment which exists in your institute
Type of Highly Satisfied Dissatisfied Highly

employment Satisfied Dissatisfied
Permanent full
time
Permanent part
time
Contractual full
time
Contractual part
time
Casual
Ques2: Are you aware about the concept of Outsourcing?

o Fully Aware
o Partial Aware
o Not Aware
Ques3: What is the level of outsourcing activities in your college?

o 0-25%
o 25-50%
o 50-75%
o 75-100%
Ques4: According to you outsourcing is beneficial for institute?
Benefits Highly Satisfied Average Dissatisfied Highly

Satisfied Dissatisfied
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Cost savings
Knowledge
Contract
Improve quality
Ques5: Is it helps in increasing the performance of students?
Performance Strongly Agree Average Disagree Strongly

Agree Disagree
Increase in
knowledge
Increase in
confidence
Enhance
capacity for
innovation
Access to talent
Ques6: Is it helps in increasing the satisfaction level of students?

o 0-25%
o 25-50%
o 50-75%
o 75-100%
Ques7: Fixed term versus permanent employee ratio in the institute

o 0-25%
o 25-50%
o 50-75%
o 75-100%
Ques8: Does the institute currently have outsourced manpower?

o Yes
o No
Ques9: What reasons lead Education sector to adopt outsourcing?

o Shortage of Manpower
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o Cost restructuring
o Commodification
o Contract
Ques10: What is the nature of provision on outsourcing? Are they binding? Are they recommendation?
o Binding
o Recommendation
o Requirement of today’s era
o Gaining Competitive advantage
Ques11: What activities are outsourced by the college?

o Training
o Development
o Lectures
o Seminars
Ques12: On a 5-point scale state what have been the trends in use of HRO in the past 3-
5 years
1 2 3 4 5
Increased Marginal Increase Remained the Marginal Decrease Decreased
same
❏ ❏ ❏ ❏ ❏
Ques13: In terms of providing Outsourcing services in education sector, which of the

following are simple to provide and which among these is complicated?
How effective are you in Simples Simple Neutra Complicat Most

t l ed Complicat
ed
Increasing the strategic □ □ □ □ □
ability of the student of the
institute
Establishing a good □ □ □ □ □
rapport/trust with the
student
Improving the self- □ □ □ □ □
confidence of the students
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Ques14: Do you think Outsourcing has influenced a change in the careers of students
today?
o Strongly Agree
o Agree
o Disagree
o Strongly Disagree
Ques15: Please list anything that you would like to share about Outsourcing in your
experience or any comments about this questionnaire.
Ans:
SBIM 76

Effectiveness of HR Outsourcing in Education Sector J

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Effectiveness of HR Outsourcing in

A Project Report submitted in partial fulfillment for award of the

Date of Submission : <date>

Name of Faculty : Ms. Rekha Gautam

Signature of Project Mentor Signature of Candidate

Outsourcing is subcontracting a service, such as product design or manufacturing, to a third-party company.

4.2 THE INDIAN ADVANTAGE..............................................................................................................................16

Outsourcing is subcontracting a service, such as product design or manufacturing, to a third-party

Reasons for outsourcing

 Scalability. The outsourced company will usually be prepared to manage a temporary or

1.1.1 Specific examples of corporate outsourcing

 new product design does not work

1.2 Negative implications

1.2.1.1 Quality risk

1.2.1.2 Quality of service

1.2.1.4 Staff turnover

1.2.1.5 Language skills

1.2.1.6 Failure to deliver business transformation

Business transformation promised by outsourcing suppliers often fails to materialize. In a commoditised

1.2.1.8 Qualifications of outsourcers

1.2.2 Social responsibility

1.2.3 Company knowledge

1.2.4 Public opinion

1.2.5 Standpoint of labor

1.3 Significance of the Study

 HR outsourcing is helpful in increasing the efficiency of student.

 It is able to reduce the labor cost.

 HR outsourcing is helpful in increasing the satisfaction level of students.

 It will enhance the capacity for innovation.

 It is helpful in lowering the overall cost of services.

 It is helpful in improving the quality of students.

1.4 Review of Existing Literature

1.2.1 Understanding HR Management

1.2.2 HR management best practices

1.2.3 HR solutions – More affordable than you may realize

2 Legal Issues in Offshore Outsourcing to India

2.2 Legal Systems that are Heterogeneous

2.2.1 The Influence of Local Laws

2.3 Dispute Settlement

2.4 Legal Issues in Outsourcing to India

2.4.1 Effective Changes in Indian Laws

2.4.2 The Proper Law of Contract in India

2.4.3 Choice of Law is endorsed by Indian courts

2.4.4 Freedom of choice to choose any law

3 Riding the IT-Enabled Services Wave

3.2 Intelnet: plans for growth

3.3 Cross-industry services

Intelnet will offer:

 Online information and help support through call centers

3.4 Global clientele

3.5 ITES: transforming the Indian business landscape

3.6 Call centers: global business potential

3.7 Opportunities in back-office processing

3.8 Tax concessions for ITES

4 High Quality in the Indian Outsourcing Industry

4.1 Defining Quality

4.2 The Indian Advantage

4.3 Quality Lapses - People and Industries

4.4 Efforts towards Improving Quality

5 Intellectual Property Outsourcing

5.1 Outsourcing gives you:

5.2 When to outsource?

5.3 Where to outsource? India, of course!