The Times of India — HR Outsourcing: New Mantra for Indian Companies, page 1, May 2004 The Times of India — HR Outsourcing: New Mantra for Indian Companies, page 2, May 2004

The Times of India, 03 May 2004 — "HR Outsourcing: New Mantra for Indian Companies" · Interview with Anil Mahajane, Talent Hunt Private Limited · Published via Press Trust of India (PTI)

Publication Details

Publication
The Times of India
News Agency
Press Trust of India (PTI)
Date
03 May 2004
Interviewee
Anil Mahajane
Organisation
Talent Hunt Private Limited

A New Outsourcing Revolution Taking Shape at Home

At a time when India was rapidly becoming the global hub for IT and business process outsourcing, another revolution was beginning to take shape much closer to home. Indian organisations were starting to explore whether specialised Human Resources functions — recruitment, payroll, training and administration — could themselves be outsourced to external experts.

A Hewitt Associates survey, "Outsourcing in the Asia-Pacific", confirmed the situation: many companies in the region were either unfamiliar with HR outsourcing processes or unaware of the players operating in the space. Anil Mahajane was one of the few practitioners speaking publicly about what the industry would need to overcome.

~$2B
Latent market size for HR outsourcing in India (2004 estimates)
$27M
Active market value at the time of publication
~50%
Annual sector growth rate

Observations from Anil Mahajane

"HR outsourcing in India has not seen the required momentum and is limited to a trickle effect, with companies outsourcing a few selected low-end HR processes." — Anil Mahajane, The Times of India, May 2004
"Even though across the globe companies are realising that headcount is directly related to the revenue and are outsourcing most of their transaction and administration related work, the general opinion among the Indian companies is that it is still economical to manage all their HR process internally." — Anil Mahajane, The Times of India, May 2004
"Here people are also not very clear about what exactly manpower outsourcing is all about." — Anil Mahajane, The Times of India, May 2004
"Most companies are not sure about the end result, which they will receive from the vendor." — Anil Mahajane, The Times of India, May 2004
"Currently there are no standard benchmarks available so pricing varies a lot from vendor to vendor for similar services. This gives the customer the feeling that they are not getting best value for their money." — Anil Mahajane, The Times of India, May 2004

Why Indian Companies Were Still Hesitant

The article identified several factors hampering the growth of HR outsourcing in India beyond cost and awareness:

  • Fear of job losses — internal HR teams were understandably resistant to outsourcing their own functions
  • Confidentiality concerns — losing control over employee data was a significant deterrent
  • Quality uncertainty — companies were unsure what they would receive from vendors
  • Pricing inconsistency — without benchmarks, vendor quotes varied widely, eroding confidence
  • Security and ethics — concerns about data breaches and outsourcing vendor accountability

Despite these headwinds, the article noted that the industry was entering a transition phase as the economic climate improved and awareness grew.

The "New Mantra" That Became a Business Necessity

What was described in 2004 as a "new mantra" is today an integral element of how organisations manage their workforce. Modern businesses of all sizes rely on specialised HR partners for:

Recruitment Process Outsourcing (RPO) Executive Search Payroll Administration Background Verification Shared HR Services Learning & Development HR Technology Platforms Published May 2004

This Times of India article is among the earliest mainstream discussions on HR outsourcing in India, capturing a critical moment in the industry's evolution — and demonstrating Anil Mahajane's early grasp of the structural shifts ahead.

← TOI: US, UK Techies Seek Jobs in India Back to Media Recognition Rediff: The New Mantra Is HR Outsourcing →