HR BPO service models for small and medium enterprises

Abstract

PurposeThe goal of this research is first to investigate the outsourcing needs of small and medium enterprises (SMEs) in each of the following HR sub‐processes: recruiting, training, HR administration, payroll, and benefit processes. Then, the outsourcing needs are analyzed against the characteristics of the companies such as company size, operating environment, culture and information technology maturity. Lastly, integrated business process outsourcing (BPO) service models are developed according to the characteristics of the company.Design/methodology/approachTo fulfil the objective of this research, the questionnaire is used to assess the outsourcing needs of the companies. The data collected by questionnaire are analyzed against the characteristics of the companies. Then integrated BPO service models are developed based on the analysis of the questionnaire data and the interviews with HR managers. This study used both quantitative and qualitative methodologies.FindingsThis study suggests BPO service industry with two different service models: partially integrated model where e‐recruiting and e‐learning are integrated and fully integrated model where all of the HR‐subprocesses are integrated.Originality/valueAs BPO is expected to be booming in the next few years, this study helps BPO service industry to better serve SMEs in the area of human resource management.