Wednesday, April 20, 2005

Ganesh Chella's article on HR outsourcing in Deccan Herald

XLer Ganesh Chella, founder and CEO of Totus Consulting, a strategic
HR Consulting firm. ( has written an
article in today's Deccan Herald looking at the myths of HR

Read the article online at

Interesting part of the article is towards the end, I quote
"On the contrary, India must be the country hiring the most in the
world. In fact, HR in India would rank as the most dynamic and
turbulent in the whole world today. So many new jobs, so many to
hire, so many to train, so many to retain and so many to keep happy!
After many years of fighting for identity, HR in India has come of
age. HR and organisation building issues are centre of the plate in
any Indian CEOs agenda today. CEOs are willing to spend as much as
it takes to manage their people and people processes well. It may
never get any better for HR. Under such circumstances, cost
arbitrage is the last thing on their mind.

What is on the minds of our CEOs is the competence gap. They are
most worried about the acute shortage of HR talent and HR

At a time when good HR support is needed the most, it is just not
available in the measure they would like. The situation is
compounded by the fact that there is virtually very little India
centric thought leadership on HR issues.

While economic development in the US in the 1960s, 70s and 80s was
supported by a significant number of organisation development and HR
thought leaders and their research initiatives, we cannot say that
of India. We continue to inappropriately apply ideas from the
western world.

What India lacks is both original thought and strategic HR support.
This is a gap that CEOs will not live with. They have already begun
to access help from outside and if the growing number of boutique
and large HR consulting firms are any evidence, real HR outsourcing
is actually happening in India. There are of course a few important

The focus will be on augmenting internal competence and not really
on outsourcing the function. It will not be driven by cost.

Thankfully, this is will be supported by a growing awakening about
the need to renew and strengthen the employee relations role and

So we might conclude that many business leaders in India (with the
exception of the very large ones) will seek strategic and specialist
HR support from outside in significant measure while they strengthen
internal HR to play the equally important role of focusing on
business partnering and employee relations. "

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