Human Resources Cost Management Research In Business Process Outsourcing Projects

With globalization, market change and development of information technology, there’s a chance for global resource redistribution, so that a business management form of business process outsourcing has emerged. Business process outsourcing means traditional and high-tech firms transfer their un-core processes to other professional firms to deal with in order to enhance their own core process to improve operation efficiency, cut cost, adapt rapidly to environment and improve competitiveness. Currently BPO is widely applied to information technology services, HR, bank transactions, customer services, research, products design etc. Compared to first stepped in BPO countries such as India and Philippine, China lags a little behind. However, there’s great progress in recent years. Until2011, there’re16,939BPO firms with3.182million employees and contract of87.38billion dollars and transaction of53.96billion dollars in mainland.BPO demand employees with various skills. Normally, employees should master at least one foreign language and be adaptive to international working environment. Young age, high degree and proficient skills are most typical. Due to ever-changing demands, training cost is climbing higher and frequent. And for the hidden elements, such as communication with foreign customers, time difference and business travel, there’s less time interacting with family which leads to high resignation rate. The most important part of BPO is to manage human resources cost. Good management of HR cost means success of the project. HR cost management theory has developed for several years, and principles of BPO theory are becoming mature, but there’s little practice research between them. The purpose of this thesis is to discuss the traits of BPO HR cost management, to use positive analysis to reveal important elements, and provide management methods.The thesis consists of five parts. General Discussion. It provides motives and background to point out BPO HR cost management traits and necessity. In summary of papers covers BPO motives, impact and HR cost management progress and perspectives. At last it provides framework, research method, innovations and shortcomings.Theory Analysis. Firstly introduces BPO industry traits, categories, project progress, combined with its industry statistics reports to summarize HR management importance and difficult. And then introduces purpose, principles, and content of HR cost management to conclude that HR cost should be analyzed before detailed policies are made. Based on theories analysis of BPO and HR cost management, it presents the cost method to record activities, and carries out cost analysis, prediction, control and decision.Research on HR cost management of Dalian HP GBS SPS projects. Based on previous conclusion, it picks SPS projects to discuss relationship between HR cost and WBS recorded activities. With application of SPSS, collected data and data from questionnaires, it decides the result and discusses the relationship. It comes to the conclusion that WBS recorded activities can reflect HR cost, and management should be carried out based on it.Management suggestions on BPO projects HR cost. Based on previous discussion, it provides detailed management methods such as volume and value prediction, cost management techniques and evaluation.Conclusion. It concludes the thesis and provides perspective for future development.