Jun 7, 2005

Rumors in the HR market

Dub Dubs has the inside dope...I wonder what that means to these HR consultancies' manpower in India...?

But yes, the outsourcing practice now accounts for a sizeable chunk of the consulting market. Don't believe it? Check this piece of information at the Management Consultants Blog. 38% is a big number by any stretch of thinking. Another interesting thing to note is that HR consulting accounts for 10% of the consulting market. And if the rumors above are true, how much of that 10% will flow into the 38% bucket of outsourcing.

Simply speaking, if a consulting firm gives a client a HR outsourcing strategy and implements it, would it be billed as HR consulting revenue or Outsourcing revenue ?

Sanjay Lakhotia has an interesting experience to share when a client wanted to outsource.

This got me thinking about the motive most clients have around outsourcing and why it ends up not giving the requisite benefit that it should. During conversations with a few clients the feel I got is that clients wanted to download their problems onto someone else, who can be blamed, other than of course show cost reduction. Due to this the situation never improved for most organization, infact it worsened as now there was another inefficient process of handover between the organization and the service provider.