Full spectrum outsourcing came into existence in the end of 90s and since then has left a mark in the HR BPO sector. Any process that includes the transfer of transactional elements of five or more major HR processes to an outsourcer at one time comes under the full spectrum outsourcing. On the whole, any company that gives the outsourcer control of any combination of HR functions, including benefits, health and welfare, performances, measurements and rewards technology and so on is making use of full spectrum.
But recently the HR BPO sector has seen a drastic make over with radically transforming how HR services are delivered. Organization relying on the outsourcers sheds the burden of holding transactional, repetitive yet important but low vale added parts of HR and concentrate on the five essentials; sourcing, hiring, training, rewarding and developing human capital. According to Naomi Lee Bloom, an expert in the HR BPO industry, about 10% of Fortune 500 companies have some kind of HR BPO deal that covers full spectrum outsourcing.
In fact many experts unanimously believe that HR BPO is the fastest growing segment of the overall business process outsourcing market. And henceforth it has become enormously competitive as many vendors are seeking the deal. Being a profit endearing industry, the outsourcing business has attracted a large number of vendors in the recent years and has been leading towards consolidation. Reason being this demand is mainly because HR BPO can lower the total cost of HR service delivery by 20% to 30% for the part of the service that is outsourced.
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