INTRODUCTION ACME TELE POWER LIMITED (ATPL), a part of the ACME Group, provides innovative Green Technology Solutions

to the wireless telecom industry, globally. ACME today offers innovative energy management services at telecom sites with minimum capital expenses (CAPEX) costs for the operator and a radical reduction of operational expenses (OPEX). Vision Being the global benchmark for green energy solutions Mission Making the Green Approach profitable Values INNOVATION: We relentlessly deliver innovative and path-breaking products, processes, services and business solutions. EXECUTION EXCELLENCE: We meet our commitments and create global benchmarks in Execution Excellence in all that we do. CUSTOMER CENTRIC: We empathize with our Customers and deliver solutions that surpass their expectations CONTINUOUS LEARNING: We transform all stakeholders (employees, customer, shareholders, partners and community) through continuous learning to enable them to achieve their qualitative and quantitative goals. RESPECT: We respect every individual. We promote an open and engaged environment that reflects empathy and fairness. We reward only performance

Since inception, ACME Tele Power Ltd. has provided pioneering and innovative solutions to optimise energy usage for the telecom industry. It is the leading supplier of telecom infrastructure solutions in India which are energy efficient, cost effective and eco-friendly. ACME believes its principal differentiator is its ability to provide end-to-end solutions as compared to partial solutions provided by most other competitors. It launched the "Green Shelter", which is a complete package to fit various environment and temperature parameters at telecom sites, avoiding the running of backup systems like diesel generators. At ACME, innovation is the very life-blood of our existence be it in our technology initiatives, products or solutions. Over the years, our innovations have led to the development of energy-efficient, environment-friendly and cost-effective products and solutions for various sectors including Telecom Infrastructure, Power Generation, Alternate Energy, Cold Chain management and Environment. The ACME Group prides itself as a trail-blazer in the development of `green technology. Acme has pioneered the Green Shelter concept, which is a complete package to fit the various environment and temperature parameters for passive infrastructure in the telecom industry. Acme has also developed a slew of innovative products and solutions like nano-cooled shelters and other telecom shelters, fuel cells, water treatment plants, ultra-modern refrigeration and cold storage products, power interface units and thermal management systems. The Company today enjoys an international presence in several countries around the world, through its own establishments, channel partners, and associates. 1

What is Outsourcing & why it is needed in ACME ? Today many Indian and overseas companies have realized the importance of manpower outsourcing. Outsourcing means subcontracting a third party company for the completion of a task or an assigned project. Manpower outsourcing is required when a firm needs to complete a task in which they don't want to hire new employees. Outsourcing is one of the most efficient ways to save cost. From Fortune 500 league to small scale enterprises every business entity understands the advantages up Manpower outsourcing. Business requires skilled manpower with adequate professional qualification. With ever increasing business demands it becomes increasingly difficult for companies to get into the intricacies of screening hundreds of applicants and selecting the best out of them. They prefer to concentrate on the business and stay away from this messy and time consuming process. Now this is where a Manpower Outsourcing Company comes into the scene. *Recruitment and Training. *Supervision. *Govt. Compliances and Payroll Management *HR Policies *Customer Care Currently many information technology (IT) firms and call centers rely on outsourcing. Concept of Manpower Outsourcing Manpower Outsourcing helps the company to avert the gathering of a large number of resumes on daily basis, and then to begin the process of searching and selecting the perfect one among the thousands of candidates. Manpower Outsourcing raises the flexibility in the process of hiring, reduces the responsibility of people, hikes the resume data bank and tears of a company's responsibility from compensations, visionary fund handling, bonuses, maternity benefits, professional taxes- resulting obviously in an overall increase in the core competencies and profit of a company In outsourcing, an external firm or company carries on management or development of a product on behalf of another firm. The concept started when companies were reluctant to hire new employees for short-term jobs. Hiring new employees means more work for HR people, security checks, and other overheads, which was not a worthy undertaking for a small project. Manpower outsourcing answered this problem, as in this case the primary company doesn't hire the worker directly. The external firms who supply the skilled workers are called manpoweroutsourcing firms. Lack of skilled workers is another scenario when manpower outsourcing is required. Many IT firms, at times, require people well- versed in specific technology, which they might not, otherwise, have in their resource pool. In such cases, they can hire skilled professionals also called consultants to complete their tasks. ACME is a solution provider for many telecom companies such as Airtel, Vodafone, Idea, Indus etc, where it has taken AMC for the company products. AMC is given for a fixed term & therefore Manpower required for such work should be taken for fixed term & here manpower outsourcing gives help the company to full fill its requirement. ACME has a monopoly in telecom sector due to which it has got AMC of many of its product for which Temp Manpower is required. TSP, O&M, EMS etc are the some of the projects in which ACME has outsourced manpower. Manpower Outsourcing agencies like Mafoi Management consultants ltd. Team lease pvt. Ltd, Manpower services India pvt.ltd. are helping ACME to full fill its manpower requirement so that Acme could concentrate on its core business.

Manpower Outsourcing Procedure Once a company decides upon outsourcing, they look for an appropriate supplier and ask for Request for Proposal (RFP). Sometimes RFPs from multiple vendors are requested. In RFP, vendors cover the process that they will follow to complete the project, current financial position of the company, technical ability of its employees, and all 2

the information, which can help win over the confidence of the company. Then the company negotiates with companies and decides on their "best and final offer" (BAFO). Both the parties finalize the contract and sign it. Next step is the transition of knowledge and information from the source company to the company providing manpower. Delivery schedule is decided for the delivery of the product. Once the project is finished, the source company can decide to terminate the contract or may renew the contract.

Some of the benefits of outsourcing are listed below First and by far the most important aspect is cost reduction of development of overall project. Hiring manpower from an outsource company who has good and knowledgeable skilled professionals in the field, can improve quality of the product. Lowering pressure on HR department of hiring and maintaining skilled professionals. Companies can put more emphasis on designing and research of a product rather than putting effort on meeting deadlines. Demerits Along with benefits people also see some demerits of outsourcing. Some of the disadvantages of outsourcing are: Manpower outsourcing can impact workers or employees of the company. Sometime companies cut jobs in their companies and outsource the work to a third party. Most often outsourcing companies are not able to meet the standards and timelines. There are also concerns related to fraud and security, as there is always a chance of identity theft or misuse of sensitive information.

Future

Companies today compete to sustain their clients and yet provide a quality service. The only way they can survive is by reducing their running cost. It is one of the best and most efficient ways to reduce the cost of development of a project.

OBJECTIVE

The objective of this research project is to study the concept of manpower Outsourcing & find out the benefits and challenges to manage the Outsourced Manpower in PAN INDIA. One more objective my Project is to find out effective ways to handle such manpower & make a process for the same through which it can be achieved..

LIMITATIONS

Time restrictions Carrying out personal interviews and get the questionnaire filled from people is not an easy task, as many
people don't want to spend their time in filling the questionnaire.

Literature data available on the topic was quite limited to some extent. Gather the information from the different location was not a easy task. Most of the mangers was not ready to talk on the same topic as it was not a important work for them.

Theoretical Perspective Once ACME has decided that which project they want to hire outsourced manpower & what % manpower will be off roll and on roll they finalize the contract of outsourced agency on the basis of different parameters & policy of the company. Once the vendor has been finalized other process gets started 1Recruitment Research points to the importance of good recruitment systems in the organizations. The 1980s brought downsizing, organizations were becoming too effective for their numbers of employees employed by them. Most problems concerning Human resources commences when recruitment is not handled properly. Resignations, low motivation, poor performance may be due to incorrect procedures in the recruitment process. This article discusses the importance of good recruitment at technical and managerial levels and the implications that are encountered as a result of ad hoc recruitment processes. Recruitment is a responsibility of every manager in the Organization. The article is divided into five sections namely: Definition of recruitment; Purposes and Policies of Recruitment; Deficiencies and Problems; Advertisements and Job descriptions; Implications and finally the Summary of this discussion. Recruitment is the premier major steps in the selection process in the Organizations. It has been explained as an activity directed to obtain appropriate human resources whose qualifications and skills match functions of the relevant posts in the Organization. Its importance cannot be over-emphasized and can also be best described as the heart of the organization Process There are two types of recruitment happen in ACME one is bulk hiring & second one or two hiring as & new position come. Once the job description has been shared with vendor & Nature of hiring is confirmed vendor line up the candidates for interview which is scheduled either the ACME premises or at the vendor premises. Hiring can happen any where in India as the company has the presence in all 23 circle (circle Circle is a term used in telecom industry to define a area). At the time of recruitment one of the representatives of vendor coordinates the interview. In bulk hiring they give offer on the sport for that they already get the offer letter printed with living the some filed blank such as Name, Date of joining, place of work & salary. A sample offer letter is given below

Dear Mr.

Provisional Offer of Employment

We welcome you to join our organization as 1. Your employment will be valid from extended in writing. to

on the following terms and conditions: for a period of One Year unless and until it is specifically

2. During your employment with us you will be deputed with ACME Telepower Ltd. 3. Your monthly Net Take Home will be Rs. /- Per Month

4. Please note that this is only a provisional offer of employment for a fixed term and is not to be construed as an appointment letter. An appointment letter would be issued to you on your accepting this provisional offer.

5. We reserve to cancel this offer in case you fail to join by be false.

or any information furnished by you is found to

6. Please bring along with you the following documents at the time of joining : 1. 2. 3. 4. 5. Copy of relevant certificates in support of your date of birth Certificates of Educational qualifications Certificates in support of your professional experience and last salary drawn 3 recent passport size photographs Reliving certificate from the last company worked for.

Kindly sign the duplicate copy of this letter as a token of your acceptance of the provisional offer letter. A detailed appointment letter would be sent to you once you fulfill our employment conditions and join duty. Wishing you the very best! Yours truly, For Ma Foi Management Consultants Ltd. Manager Statutory Compliance

Refer the annexure 1.1 for filled POL Detailed appointment letter can be given them on date of joining or after the joining. Some time as the position come same can be filled through internal references. It happens majorly once the project has been started & running smoothly. Secondly this type of recruitment has been seen in filed job where reference comes from the field staff or from the field manger, this type of recruitment is preferred in telecom industry as most of the involved is in field only & their for they are well aware that where the suitable manpower can be found. If the manpower come through internal reference than the same is shared with the vendor in a pwerticular format. One blank format is given below.

Offer Letter Request Format Ma foi

Deputee ID

(To be filled by SSC member) Offer Letter Generated on (Date) Offer Letter Generated by

S.No 1 2 3 4 5 6 7

Particulars Contract Code Client Name Location Deputee Name Date of Birth Date of Joining Designation

Details 15296

Remarks

ACME Tele Power Ltd

8 9 10 11 12 13 14 15 16 17 18 19 20

21

22 23 24 25 26 27

Role ZONE Tenure Reporting to Paid Leave Sourced by Nominee full name & Relationship PAN/GIR Number Gender Father's Name Marital Status Spouse Name Mailing Address Plot No. Street Name Locality City PIN Code Permanent Address Plot No. Street Name Locality City PIN Code Phone Number (Official) Phone Number (Residential) Mobile Number Official Email ID Personal Email ID Qualification Basic Professional Post Graduation / Masters Additional Experience (in months) Full time Part time Other detail (hours of work and remark) Salary Structure ( Any ONE of them) CTC per month NTH per month Gross per month Any other remarks to be mentioned in the Offer

Division / Department 1 year

Ma Foi Recruit or Client Transfer

Single / Married Mandatory if Married.

Options - 10, 12, PUC, BA , Bcometc Options - BE(EE) , CA, MBBS Options - MBA(HR) Any other certifications.

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29

Refer the annexure 1.2 for filled sample

2 Joining & Induction Once the recruitment done & the candidate has accepted the offer letter first thing come to picture is Joining & induction Vendors have their on joining kit which included Personnel details, PF, ESI & other required forms. If the hiring is in bulk than joining happens on the ACMEs premises other wise it happen to local offices. Here we find one more benefit of putting Manpower on other agency roll that its not mandatory for ACME to have a office in all circle but they can have manpower in those circle as the vendors have the reach in all the states & major cities. Same day they open the bank account of the candidate with & provide them bank kit which contain ATM card, pin no & check book. Same day they also give the appointment letter & take the signed copy back. They prepare personal files for each & every manpower. Below is the format of appointment letter where they have different clauses. These clauses can be changed as per the requirement of the ACME.

Welcome Letter -Page 1

To, Mr. , Gurgaon-122001. Dear Mr. I extend a very warm welcome to Randstad , worlds second largest HR Services company. We are delighted to have you as part of our organization. We hope, our association will be professionally meaningful and mutually beneficial. Randstad has been providing exciting, professional employment opportunities to deserving talent and it fulfills increasing needs of staffing flexibility for its customers across industries. Apart from India, Randstad provides its services to its customers across the globe with its major positions in Australia, Belgium, Canada, France, Germany, Luxembourg, the Netherlands, Spain, Switzerland, Poland, Portugal, and the southeastern United States. As you go through your joining formalities and induction, you will gain more clarity on how your relationship with Ma Foi Management Consultants Ltd, (Randstad Group Company in India) will progress your career. We will do our best to help you be a productive member of the family through our various programs. In this direction, we have created some exclusive facilities for you: https://www.mafoi.biz/ourpeople enables you to access and download your monthly pay slips, edit personal details, download forms required for registering for statutory benefits and many others. We invite you to log into this website with your user name and password given below. You have the option of changing your password after logging in. 9

Your User ID : Your Password: In addition to this, we will be providing you with an exclusive Randstad e-mail ID. Any information / communication from us will be routed to this mail ID. You, in turn, can use this ID to communicate with all your contacts including Randstad team. To avail this facility and have the mail ID configured, please log onto http://mail.randstad.co.in. Your User ID and password for the email facility is same as above details for https://www.mafoi.biz/ourpeople Randstad Help Desk is another facility for you to have all your queries addressed. The facility is currently available Monday through Friday, 9am to 7pm. You may contact the Help Desk through one of the three methods below: Log in to https://www.mafoi.biz/ourpeople Call us at 09282348709 or Toll free 1800 425 9944 Email us to flexicare@mafoi.com I wish you all the very best as you embark on an exciting journey with Randstad while enhancing your professional stature, along the way. Sincerely yours,

OL/ACME/MAY/2009

FIXED TERM CONTRACT OF EMPLOYMENT Page 2 We are pleased to offer you employment in our organisation as .at..level, for a fixed period of employment, on the following terms and conditions: 1) Your contract of employment shall be valid for a period of from .. to ... Notwithstanding this, in the event of the project/ work for which you are being employed comes to an end before the aforementioned period, this contract shall be co-terminus with the aforementioned project/work. At the end of the above referred period, the contract will stand terminated automatically without any notice or communication to you, unless they are explicitly extended by us by a letter in writing.

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2) Notwithstanding anything above, depending upon the aforementioned project/work, the Company reserves its right to extend your appointment for such period or periods as may be necessary depending upon the exigencies relatable to the work for which you are hereby engaged. In that event, the Company shall in writing extend your assignment on the terms as may be indicated in such letter and in the event of your acceptance of such extension of the assignment you shall be governed by such terms and conditions as may be indicated therein. 3) During the period of fixed contract, your services could be deputed at the sole discretion of the Management to any of our clients company to do work pertaining to or incidental to the clients business. 4) Details of your salary break up with components is as per the enclosure. 5) You will be entitled to an employers contribution of Provident Fund to the extent of 12% of your basic salary. 6) You will be covered under a Group Accident Insurance Scheme to the extent of Rs/- and medical insurance upto /-, per annum. This policy will come into effect after 30 days of employee joining the company. 7) You will be eligible for .. days of Privileged leave and . casual leaves, during the period of your contract of employment. 8) You will be entitled to all other statutory benefits wherever applicable during the fixed period of contract. 9) This contract shall be terminable by either party giving 15 days notice in writing or salary in lieu of notice, to the other.

Below is the format of the letter of deputation which make work easier for both vendors to depute their employee to the ACMEs premises. Here some clauses are very useful as they clearly differentiate between the regular employee & outsourced manpower & also say that outsourced manpower in any situation can not claim that they are the permanent employee of the company. DEPUTATION - Page 3 Dear xyz, Further to clause 3 of your letter of employment, we are pleased to advise you that your services are being deputed to ACME TELEPOWER LIMITED with effect from. The terms and conditions of your deputation will be as follows: 1) You will, with effect from ., be required to work at our clients office/ premises at any of their locations. 2) During the tenure of the deputation, you will continue to be an employee of Ma Foi . 3) In the day to day functioning or carrying out all responsibilities, you will receive instructions from ACME TELEPOWER LIMITED and will undertake to abide by any suggestions, etc. given by any assigned person(s). 4) 5) You shall also abide by any training that may be offered to you by ACME TELEPOWER LIMITED. You shall be bound to follow the working hours of ACME TELEPOWER LIMITED.

6) You shall take care not to disclose confidential information / trade secrets, etc that you may come across in the course of your responsibilities to anyone outside ACME TELEPOWER LIMITED and use such information only in connection with the service provided to ACME TELEPOWER LIMITED. 7) You shall at no point of time stake any claim or right to claim employment, damage, loss or compensation of any sort whatsoever against ACME TELEPOWER LIMITED. This arrangement is purely a contractual agreement between Ma Foi and ACME TELEPOWER LIMITED for the time specified. 11

8) You shall not engage in any act subversive of discipline in the course of your duty/ies in the property of ACME TELEPOWER LIMITED or outside, and if you were at any time found indulging in such act/s, we reserve the right to initiate disciplinary action as is deemed fit, against you. 9) You shall be responsible for protecting the property of ACME TELEPOWER LIMITED entrusted to you in the due discharge of your duties and shall indemnify ACME TELEPOWER LIMITED when there is a loss of any kind to the said property. 10) In respect of your employment you will be governed by the guidelines of Ma Foi and this contract appointment not provide you any right of employment with the Company you have been deputed to. All the other terms and conditions of your employment remain unchanged. Please sign the duplicate copy of this letter as a token of having read and acknowledged the contents and return it to us. With warm regards, Yours truly, SALARY DETAILS FORMAT-Page 4
NAME : Mr. CENTRE : Delhi DESIGNATION: P.O.E D.O.B: FATHER'S NAME : Basic House Rent Allowance Deputation Allowance Bonus/Ex-gratia Gross Salary Provident Fund ( Employer's Contribution) ESI ( Employer's Contribution) Insurance CTC (Cost to the Company) LESS Provident Fund (Employee's Contribution) ESI ( Employee's Contribution) Total Deduction Gross Salary - Total Deduction = Net Take Home ACME () Dep ID: Location: Gurgaon Level: Cost to the Company (Rs.) Monthly Annual

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HEALTH AND SAFETY POLICY Page 5 1.Introduction Ma Foi recognizes people as its most important asset and is committed to ensuring safe and healthy work environment for all its employees and people visiting its premises. Ma Fois corporate policy necessitates a specific Health & Safety Policy for its outsourced employees. Given that our deputees are deputed to various client sites where each clients Health & Safety Policy would be different, it is our commitment to ensure that our deputees have safe working conditions, where risks if any, are well managed and our clients treat all our deputees as they would treat their direct employees in matters of health & safety. This document is to be read and thoroughly understood by all Ma Foi deputees at the time of joining an assignment; it requires them to be aware of the policy and our recommendations for safe working practices We assure that we will not depute a deputee to a client site which causes an Occupational Hazard or risk to Health. We will only work with clients who are aligned to our Health & Safety Policy for Deputees. Additionally, we advise our deputees and employees to bring to our notice situations that a deputee might encounter and could be a potential health & safety issue. We also ask our deputees not to endanger themselves or their colleagues at work by violating any safety rules and to comply with work place instructions besides ensuring that they wear Personal Protective Equipment where advised. Our deputees are asked not to interfere with or misuse anything provided for their safety, health and welfare. This is a condition of employment with Ma Foi. Management reviews will be held each year to review implementation of this policy and draw upon further improvements for the following year. These improvements will include the policy itself and the associated business processes to attain objective of this policy. 2. Health & Safety Policy Health & Safety in the work place is every ones responsibility. Ma Foi regards promotion of Health & Safety measures as a mutual objective for the management and employees, including deputed employees. Ma Foi has factored in statutory requirements while arriving at this Health & Safety Policy. General Safety 1. Ensure that you are aware of your own responsibilities in respect of relevant health, safety and environmental matters 2. Follow instructions the way it is meant to be. Use entries and exits, lifts in the manner it is meant to be. 3. Ensure you have your Deputee ID card on your person at all times with your photograph, Ma Foi contact details and Nos. displayed in a clear manner 4. If you have a visitor, ensure your visitor signs in and receives a security pass. Do not take your visitor into the client premises without permission 5. If you identify a suspect package, do not touch it, inform your office facilities or securities manager 6. You will not enter your work premises while under the influence of alcohol, drugs or any substance which may endanger your health or safety and/or that of any other person 7. Beware of fact that many things which may be obvious get overlooked while working. Thus, appropriate care and concentration is required at work to ensure general safety. 13

Fire Safety 1. Ensure familiarity with the fire safety procedures in work place. Most organizations have fire safety training as a statutory requirement. Ensure you attend the same, after seeking necessary permission from your reporting manager. 2. Understand different kinds of fire fighting equipments installed at your work place 3. Be familiar with the sound of the fire alarm and know the emergency/fire exits. These are not normal entry/exits. These exits are signed with the statutory fire exit signs 4. Attend fire drill if any at your work place and undergo evacuation training 5. Avoid taking personal risks; do not try to tackle fire on your own. Accident & First Aid Familiarize yourself with the First Aid arrangements at your work place. Do not leave vehicles or items relating to your work in places other than that which is designated. This will help prevent accidents. 1. Follow rules on speed limit and wearing safety gear as is prescribed at the work environment that you are at. 2. If your office premises require you to wear a helmet while entering or exiting, comply with the same. 3. In the event of an accident, do not handle it on your own; follow procedures that you may have been trained in; inform the facilities manager or emergency numbers provided 4. Understand accident report procedures at your work site 5. Always let someone know where you are going and your expected time of return As a Ma Foi deputee, you have the right to: 1. Work in places where all the risks to your health and safety are properly controlled 2. To stop working and leave the area if you think you are in danger 3. To inform your employer about health and safety issues or concerns Recommendations for Common Safe Working Practices 1. Do not smoke in areas prohibited 2. Do not overload electrical outlets 3. Do not expose electric conduits/plugs/sockets to water 4. If your work requires you to lift weight frequently, understand load management procedures at work 5. Do not operate machinery unless you have been trained and authorized to do so. 6. Never throw anything from any height. 7. If you use tools as part of your work use only the right and authorized tools 8. Report any Health and Safety incidents whether they result in injury or not to your respective Ma Foi anchor 9. Co-operate in the investigation of accidents with the objective of introducing measures to prevent recurrence After the completion of the joining formalities they just give a small presentation to them which tell both about the Acme & the vendor through which the manpower is hired. They tell them about the policies which will be applicable for them, also provide the form through which they could claim their reimbursement. They also take them through their appointment letter & explain each & every thing that how could they check their salary slip personal details on web portal, they also let them know about they clauses & their meanings to them. Here one thing is very clear that here Manpower is outsourced not the HR process & hence the employees are not the employee of ACME but they are deputed to ACME for a fixed period.

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3 Training After Induction employee need to be trained as per the work requirement of the organization. Here vendor do not play any role. Training is the total responsibility of ACME, mostly employees goes for on job training they attach one or two associates with one trained person who tell them daily troubleshooting on sites. It took three two four month to one associates to groom & give desired out put. Training is also happen on regular interval to update the associates about the new product & new tools. In the training they also get the instrument kit which is called as a Tool Kit. They get the knowledge that how the tolls given to them can be used in their work as they all have the technical background & have the knowledge about the use of the same. But what will be the use in the particular job profile that they learn here. 4 Imprest: Once the candidate has joined & started his job in filed he need money to roam here & their to complete his duties he need to visit from one location to other with required material for which he need money therefore ACME pays them imprest amount. This amount gets paid within a first week of joining & therefore an advance amount ACME gives to their vendor in then beginning of the contract. Its a rolling amount & whatever amount vendor pay they raise a invoice for the same & Acme pay the same so that the total amount remain same Imprest is certain amount as an advance to new joinees immediately after, once a new employee joins their organization. This amount is supposed to be used by new joinees for their expenses such as travel expenses, or for the payment of telephone bills etc., by the time their first salary and reimbursement gets processed. This particular amount which is paid by the ACME to new joinees as an advance amount is termed as imprest. The amount paid as an imprest by the company may or may not be a fixed amount. The Vendor representative process the imprest on the basis of details provided by the ACME HR, immediately after a new employee joins. After making all the calculations a separate invoice is raised for the same and it is delivered to the company. Here Vendor needs to ensure that imprest amount must be paid to the new joinees max to max within a week time once a new employee joins the client company.

5 PAYROLL Once the employee has Joined & started woking its responsibility of both vendor & ACME that they get their wages on time. To mange the salary & other payment the term is known as Payroll let me brief the payroll first with its benefit when it happens for Outsourced manpower. The term 'payroll' encompasses every employee of a company who receives a regular wage or other compensation. Payroll includes all forms of compensation, such as salaries, wages, reported tips, commissions, bonuses, vacation allowances, sick-leave pay, employee contributions to qualified pension plans, and the value of taxable fringe benefits. For corporations, it includes amounts paid to officers and executives; for unincorporated businesses, it does not include profit or other compensation of proprietors or partners. Payroll is reported before deductions for Social Security, income tax, insurance, union dues, etc. Thus payroll function establishes authorization for payroll event as it provides inputs for Pay rates, Exemptions, Deduction, Taxes, Insurance, and other programs. Some of the major payroll activities are: Payroll Processing and Pay Slip Generation Bank & Cash Payment Report Attendance Report & Leave management

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 Statutory Compliances & Reports of Provident Fund (PF), Employees State Insurance Corporation (ESIC), Employees Deposit Linked Insurance (EDLI),Professional Tax (PT), Income Tax (IT) MIS report on Promotion, Increment, Gratuity, Bonus, etc. Full and Final Settlement Reimbursement Management Income Tax Management Arrears Calculation Its a very huge responsibility of a vendor to complete a smooth payroll cycle as the whole reputation of a successful vendor or a successful Manpower agency is depend that how strong they are in payroll system. ACME is dealing with internationally known agencies such as Mafoi, Manpower etc because they have very systematic & flexible payroll system for outsourced manpower. FINANCIAL DRIVERS BEHIND PAYROLL OUTSOURCING There are three basic financial drivers behind payroll outsourcing: Save money (ongoing expenditures) Avoid capital outlay (Often a more important Consideration than direct cost savings) Turn a fixed cost into a variable one (Thus, if the workforce shrinks, cost for payroll processing can be reduced accordingly.) Avoiding capital outlay is perhaps the greater concern for many organizations especially for public-sector organizations, many of which are operating with decades-old legacy mainframe systems and can scarcely afford routine software upgrades. From a services standpoint, outsourcing invariably means upgrading to new, often state-of-the art services that provide a better work environment for employees while giving HR professionals the tools they need to manage more effectively. Employees can learn the status of a paycheck online, sign up for online training via the organizations intranet, file an insurance claim, or download their organizations medical benefits policy from home. HR professionals get such capabilities as automated payrolla big plus for organizations with their primarily unionized workforces and complicated payrolls. Outsourcing also enables companies to centralize highly decentralized processes that are repeated at multiple locations, through the shared-services model. The resulting efficiencies enhance organizations ability to hire and keeptalented workers. Through technology tools and processes that most public-sector organizations could not afford to build internally, outsourcing thus can provide improved and more convenient services. From the ACME perspective, the outsourcing business model is typically built on a number of important central principles: Extensive automation to improve transactional efficiency. Centralization of Processes No liabilities 16

The last factor is fundamental to the outsourcing business equation to reduce the cost and therefore the price of service delivery, the outsourcer needs to realize economies of scale from managing high volumes of transactions in the same way. Thats not to say that outsourcers wont change their business practices to suit the unique business needs, its just that they will have to charge for doing so. In many respects, this commitment to standardization can be a positive factor. Outsourcers are specialists in their field and standardize not just on the processes that suit their way of working, but on the best practices that they have learned and applied over the years. Because so many in-house payroll operations evolve in a piecemeal manner, this approach can provide a refreshing opportunity to push through change. In addition, fitting in to the service providers way of working may be less problematic than instituting wholesale internal change. But this approach may impose some constraints on the way an organization conduct its payroll business. To begin with, in an in-house payroll setup, organizations typically have flexibility to handle last-minute adjustments or to cater for late batches of data from regional centers. Outsourcers, however, have limited flexibility in terms of when they can take delivery of data and may impose an earlier cut-off point than their customers are accustomed to. Likewise, requests for out-of-cycle checks which are relatively easy to handle in-housemay incur charges. In addition, because the data is handled out-of-house, some errors will only be discovered once the payroll run is complete and wont be corrected until the next pay cycle, which complicates financial reporting. By contrast, when its managed in-house, payroll tends to be more of an iterative process where accuracy can be continually improved, which may be a further factor in reducing errors and retroactive adjustments. It is also important to take into account the parameters within which outsourcing service providers operate. What the outsourcer is taking on is management of payroll transactions and associated processes, including administrative factors such as check printing. But unless the arrangement is a full-blown BPO deal that covers HR data, the client will still be responsible for capturing the initial pay-related data that needs to be processed. That includes: New hires and terminations. Hours worked and overtime incurred for hourly workers. Sickness absence. Salary adjustments. Changes to benefit entitlements. Changes in status (e.g. marriage). Exception processing.

While payroll itself is not tremendously complicated, organizational satisfaction with payroll is all about how quickly and accurately exceptions are handled and processed. Regardless of whether payroll is outsourced or done in-house, sufficient expertise must be maintained internally to deal with the inevitable exceptions. As a result, there will still be a significant level of internal resource required for the overall payroll process. ACMEs Manpower is spread out in Pan India & here again outsourcing give them a best solution as the outsourced agency do all the work & ACME just need to pay the amount to one vendor only & as per the contract CONTROL AND RESPOSIBILITY Control is one of the most sensitive factor that come to bear in a decision to outsource, impacting every department involved in the payroll process and sometimes generating resistance. At an administrative level, it tends to be a territorial issuea concern prompted by the knowledge that large chunks of process are going to be assumed by a third party. 17

At board level, the issue is more strategicwill the customer have sufficient influence over the provider to ensure that payroll services are delivered according to contractual agreements, and are there mechanisms in place to enforce agreements and, if necessary, wrest back control over the process? Theoretically, an outsourcing agreement should have no negative impact on the level of control enjoyed by the customer indeed, it might even improve it. Outsourcing contracts are governed by service level agreements based on key performance indicators (KPIs), governing the speed with which payroll is processed and employees queries resolved, the volume and content of management reports, and so forth. In some instances, that definition of service expectation will exceed whats required of in-house operations, which may be run with less stringent scrutiny over service quality and deliverable that allows organizations to exercise tighter control over operational efficiency. This is not, of course, an argument exclusively in favor of outsourcing. Increasingly, high-performing organizations apply the same kinds of KPIs to their in-house operations, setting up the department as a virtual service provider and treating the rest of the organization as a customer. It doesnt require outsourcing for disciplined performance management practices to be applied. In addition, its important to be sensitive to the difficulties of defining and enforcing service level agreements and other terms of engagement with third parties. One multinational leisure group that switched from an in-house operation to a payroll and HR BPO arrangement spent six months negotiating the statement of work, terms and conditions, and service level agreements with the service providerseveral weeks of which came down to debating the meaning of the word mostly in the context of service provision. And, from an enforcement perspective, its easier to replace internal management or individual members of an in-house payroll team than it is to force through change at the supplier side. Finally, whatever the degree of control exercised by the customer, there will always be limits on the level of responsibility assumed by the service provider. While a service provider will take on responsibility for transaction processing and administrative tasks, legal responsibility for meeting taxation and regulatory requirements remains with the customer. Although leading service providers have extensive expertise in these fields, ultimately their role is to execute to client wishes. PROCESS AT ACME To process the salary of outsourced manpower acme has fixed a cut off date, which is mentioned in the contract as per the cut off date Acme Has to give all the inputs, like Joining, resignation salary revision, re-designation & deduction. Once the input has been frizzed vendor send the master data to ACME. & they send the attendance to the format given by the Vendor. Acme HR shares their sheet with region & accordingly they send the paydays, leave, absent & other remarks which need to be incorporated in the salary once the data come to ACME HR he sends the same to concerned vendor for the Salary processing & then vendor sends a final draft invoices to acme HR after getting it verified ACME HR gives its final go ahead.

PAYROLL PROCESS AT VENDOR END 1 Determining The Salary Structure: Once personal information and all other details regarding the employee updated in the online system, the next step is to determine the proper salary structure on the basis of CTC or NTH details provided by the company, along with the offer letter request for that particular employee. This is a very crucial step, as the Vendor needs to ensure that the salary structure of employee determined by him must satisfy all the statutory compliance requirements such as, contribution towards PF, ESI, 18

Insurance and Ex Gratia or Bonus, as per the range and limits determined by the various government authorities. The Vendor must ensure that the salary structure determined by him must be such that, that the basic salary of an employee must be more than the minimum wages set by the government for that particular state where the employee is going to be employed. 2 Fulfill The Statutory Compliance Requirements: Each Vendor needs to make ensure, that every employee must fulfill all the requirements of statutory compliance, by the time offer letter for the same is generated by him. In order to complete all statutory compliance requirements, an Vendor has to ensure that every employee must fill and submit the following forms: Personal Information Form ESIC Form PF Nomination Form Form v (For Gratuity) SSN Form

3. Invoice Cycle On the basis of all details provided along with attendance, the Vendor representative enters all the data in the online system and the following calculations are made: LOP i.e. Loss Of Pay (if any) for any particular employee Salary arrears (if any) for any particular employee No. of leaves taken by individual employee No. of leaves balance for individual employee Leave encashment (if any) No. of days payable for individual employee Deductions to be made (e.g. Contribution towards Tax, PF, ESI, Insurance etc.) Float (service fee charged by the service provider company from the client company, against payroll processing of each individual employee)

On the basis of these calculations, the final salary to be paid to an employee during a particular month is calculated. Thus after freezing the final data a claim i.d. is generated and it is sent to finance department for generating the invoice. The finance department calculates service tax and other taxes, and generates the invoice. Then it is finally delivered to Company. 4 Pay sheet Approval Once the payroll data is freeze, pay sheet for all individual employees gets uploaded online. The final pay sheet includes all details regarding the payroll inputs of individual employees that have been entered online by the concerned representative of Vendor. The Vendor approves all pay sheets before the cut off date decided by the corporate, so that data can be provided to bank for check printing and fund transfers before the payout date.

19

It is one of the crucial steps in payroll process for the vendor payroll team, since the unapproved pay sheets are not considered for salary payout and because of that it might be possible that employees may not receive their salary on time, even though they might have finished the other steps of payroll process timely. 1. Collection & Payout After all the calculation a final back sheets where all the calculation of paid days, rears, deduction etc. are maid is given to ACME with the front sheet where they show total payment to be done. Invoice contains the total CTC as per the pay days calculation + service fee (vendor float) + service tax. Once Acme receive the same they get it cross checked & same is sent to account department for payment. Account department do the payment after completing its on process. 2. Salary Disbursal Once the salary payout is done, the Vendor has to dispatch all salary cheques or drafts (if any) either to Manger or to the individual employees. The Vendor needs to make sure, that all salary cheques or drafts must be dispatched to the right person at right place timely, as soon as the salary payout is done.

Reimbursement: Reimbursement is also an important factor for Outsourced manpower. Once you have given them Imprest amount that money gets exhausted within one month & therefore they need more money to do their job. ACME has the reimbursement policy which says that all the Outsourced employees need to send the filled reimbursement for to their respective manger after fifteen days so ACME Has two reimbursement cycles in a month for outsourced manpower through which he imprest amount get rotating & employee gets his financial need fulfilled. After receiving the claim form ACME HR cross check the same as per the entitlement & make a excel sheet below are the forms & summary sheet of the reimbursement claim through which outsourced manpower claim their reimbursement

20

Summary of Travelling/ other Expenses

Emp.Name: Emp.Code: ICICI Bank A/c.No. Department: Designation : Claim Period:From Region/Circle/Zone: Location : Claim No.: To

Sr.No. Particulars

Amount

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11)

Air/Bus/Train Fare Boarding/Lodging Local Conveyance Telephone/Mobile Expenses Postage & Courier Printing & Stationary Business Promotion Purchase of Materials & Gas IT Expenses(Internet) Loading & Unloading Charges Misc.Expenses Total Expenditure:

Authorised By: (Name & Sign.)

* This format is used by the Deputees

21

22

23

24

On the basis of details provided to the vendor they enter reimbursement inputs in the online system and after making all calculations, approve all the data. Thus once all the data is approved, a sheet i.d. is generated and it is send to finance department for generating the invoice. After calculating processing fee and other taxes such as FBT, the invoice is generated by the finance department and then it is finally delivered to ACME. Again the invoice goes under the same process as the salary invoice & acme do the Payment to respective Vendor. After being cleared from the ACME vendor do the reimbursement payout. Once the reimbursement payout is done, the Vendor has to dispatch all reimbursement cheques or drafts (if any) either to Manager or to the individual employees and needs to make sure that all reimbursement cheques or drafts must be dispatched to the right person at right place timely as soon as the reimbursement payout is done.

PERFORMANCE MANAGEMENT SYSTEM Once the associates has spent some time with organization & start performing. Their performance need to be recognized & appreciated so that the motivation levels do not come down. Normally the appraisal happens at the end of financial year. For the appraisal its again responsibility of ACME & after following all the process whatever is the final amount this information gets shared with the respective vendor Then the vendor processes the hike or re-designation letters & sends the same to the respective employees. Below is the format of Salary revision letter

Date: SRL/ACME/ To Mr. Address SALARY REVISION

Dear Mr., With reference to your fixed term contract of employment dated.., we are pleased to inform you that your salary structure would stand revised as follows with effect from . 25

(All figures in Indian Rupees) Basic House Rent Allowance Conveyance Allowance Medical Allowance Professional Development Allowance Deputation Allowance Bonus/Ex-gratia Special Allowance Other Allowance Gross Salary Provident Fund ( Employer's Contribution) Insurance CTC (Cost to the Company) LESS: Provident Fund (Employee's Contribution) Total Deduction Net Take-Home (Gross Salary - Total Deduction)

Monthly

Annual

All other terms and conditions remain unchanged.

Yours truly,

As the contract is for fixed term after one year if ACME wants to continue the services of that particular employee they inform the same to vendor & then Vendor give the letter of Extension of services again for a fixed period. when the contract comes to end between Vendor & the associates they ask the same to Acme wether it need to be extended further or not then acme take the decision as per the project requirement.

Below is the format of the letter of Extension of contract

26

Date EL/ACME Mr.

EXTENSION OF CONTRACT Dear Mr. This is with reference to our letter dated .. pertaining to our fixed term contract of employment. Further to clause 2 of the said letter, we are pleased to extend the contract for a further period of 01 Year with effect from to ... All other terms and conditions of your employment remain unchanged.

Please sign the duplicate copy of this letter as acknowledgment of your acceptance of the same.

Yours truly,

Below is the letter format of re designation -

15/01/2008 AL/ITGIC/JAN/2008

To Mr XYZ DELHI

27

SUB: Change in Designation

Dear ,

This is to inform you that your designation .has been changed to with effect from ...

All other terms and conditions of your employment remain same.

With regards,

Reward & Recognition

Sarahna Award Objective: To encourage and recognize any stretched effort and/or a notable contribution made by contractual/ Piece rate/ Outsourced manpower within or outside his/ her job responsibilities at ACME The purpose of this award is to create a culture of appreciation and it has no bearing on terms of employment of contractual and piece rate/ Outsourced manpower.

Coverage: All contractual and piece rate/outsourced Manpower

Evaluation Criteria: Some of the broad guidelines on what may comprise of exceptional effort / contributions are as follows: Beyond the call of duty assignments Exceptional performance Demonstrating ACME values under stressful and difficult situations Instances of Customer Delight Managing critical situations effectively Taking successful initiatives

The above are indicative and not exhaustive.

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Process: 1 2 3 4 5 6 Each Head of Department /Functional Head will be assigned an employee welfare amount sanctioned for Kudos/ Sarahna Award. The HoD/ Functional Head can recommend a contractual and piece rate/outsourced manpower for the award by filling up the nomination form (format attached) The HoD/ Functional Head would then submit the nomination form to HR coordinator either in hard copy or through email HR, after receiving the nomination, would recommend it to the concerned contractor. The contractor, after acknowledging the nomination, would himself/ herself arrange for the award and the amount will be reimbursed by the company The HoD/ Functional Head will congratulate the recipient and provide the token of appreciation in person, in presence of his team members

What is the Reward? The award comprises of a token of appreciation of value up to a maximum limit of Rs.500/- per occasion. The value will be decided and recorded by HoD/ Functional Head in the nomination form.

Full And Final Settlement: Once the employee resign due to his personal reason or some other resign the process of full & final began. Outsourced manpower need to submit his resignation to his manger intimating his last working day & need to serve notice period as per the appointment letter. He submits his al the tool kit & other company asset to his manger which he has taken for the work. Here the resignation letter is addressed to the respective vendor only not to the ACME as they are the employee of Vendor. Therefore their resignation should be marked to vendor only. Every vendor has a resignation format which they had made online in the web portal of the associate. Below is the format of resignation for one of the vendor

Resignation Letter
Date: Associate Name: Employee Code : To Dear Sir / Madam, 29

Sub: Resignation I have been deputed for an Assignment services in the said Assignment. at ACME Tele Power Ltd and I am presently rendering my

Due to personal reason/ my seeking better prospects I am unable to continue my services and for the said reason I am tendering my resignation. Request you to accept my resignation and relieve me from the services on ______________ While completing my F & F you are authorized to deduct any amount due towards my official mobile connection provided for the Assignment by ACME Tele Power Ltd at the time of my joining. I am thankful to Manpower for giving me an opportunity. I request an Assignment experience letter may be issued to me. Thanks & Regards, Associate Name Associate Signature Associate Current Address Associate Contact No Confirmation from ACME on receipt of the following S. No 1 2 3 4 Item Tool Kit Mobile Sim Card ID card Site Keys Yes / No Name, designation & signature of the receiver

Once the ACME HR gets the resignation, the same details they shared with the respective Vendor & put a stop payment on the all transaction.

For vendor full and final settlement of an employee gets start once they get the deduction details along with the resignation of the employee. Then vendor prepare a full & final statement for that they consider The amount which is due and need to be paid to that particular employee. The amount which is due and need to be deducted from that particular employee.

The Vendor calculates the amount to be paid to such employee as the full and final settlement on the basis of details provided by the ACME. All calculations are made on the basis of CTC of that particular employee. Once all the calculation is done by the Vendor, an invoice is raised for the same and delivered to the Acme. The ACME makes the payment to the vendor and thus finally the full and final amount is paid to the particular employee. He receive the same along with full & final settlement sheet, experience letter & relieving letter below are the format for the same which vendor is using in ACME 30

Date: RL/ACME/

Mr.

RELIEVING LETTER

Dear Mr., With reference to your resignation letter dated , we record our acceptance with regret.

We hereby confirm to relieve you from our services, from the close of working hours of

We wish you success in all your future endeavours. Yours truly, Below is the format of the experience letter

Date:

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr.

had been in employment with Ma Foi Management ' from to

Consultants Ltd. and had been deputed to ACME Telepower as a . Wishing him the very best in his future endeavors.

Yours truly,

31

Termination OF Employee There are the some incidents where employees need to be terminated due to non compliance or some other reason This process is clearly mentioned in the appointment letter of the Outsourced manpower. Below is the format of termination of the services.

Date : 11/12/2008 TL/ACME/DEC/2008

Mr.Sushil kumar Sharma 58 , Mangal Nagar P.O- Vaishali Jaipur

RAJASTHAN

TERMINATION OF CONTRACT
Dear Mr.Sharma, Refer to clause 10 of our Offer Letter dated Aug 07, 2008. We are hereby terminating your fixed term contract with Ma Foi Management Consultants Limited with effect from 04/12/2008

Yours truly,

32

This is a complete life cycle of the outsourced manpower in ACME. Like a regular employee they enjoy all the other facilities the only difference is that they are not the employee of the ACME but they are deputed to here to work & therefore all the responsibilities goes to the agency through which the manpower is hired & they are supposed to complete & take care of the life cycle of the Employee. These agencies are professionals in the same filed & have more than 50k Manpower in PAN INDIA basis. They have all the machinery & manpower to do the work in professional way & help the Organization like ACME. Where there are so many things to do. To complete the task they have team of professional. A company is called client or account for them. To complete the day to day activity they assign the account to a particular member called key account manger. He coordinates to all the team member of other location, therefore for ACME he is the one point of contact.

Below are the some key players of Outsourced Manpower in India. KEY PLAYERS IN FLEXI STAFFING

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METHODOLOGY AND PROCEDURE OF WORK RESEARCH OBJECTIVE

Primary Objective The main objective of my research was to find out the fitment of Outsourced manpower in current industry & find out Operational roadblocks and various other factors that affect the efficiency and quality Outsourced Manpower & to find out a better way to handle this Manpower.

Secondary Objective The secondary objective of my research was to prepare a process on the basis of the findings of primary objective so that out sourced manpower could be handled in better way. Research Design To achieve the primary objective I designed a questionnaire including 18 questions in total, 11 objective & 7 detailed and got it filled by various mangers of different business vertical. In order to achieve the secondary objective of my research, I took suggestions from the respective reporting mangers, discussed the same with contractors through which the manpower is taken & then discussed the same inputs with my Guide. Most of the data gathered, is through internet and by conducting the personal interviews with the vertical heads, HR operation Head. It also helped in collecting the information and data, which helped in analysis as well as exploring the practicalities of implementation of the process in effective way. Research Methodology

Survey Method For my research, I conducted the survey of the various with vertical heads such as Project & services, operation & maintenance, TSP, Account, HR & R&D. The survey contains one questionnaire. It includes 15 questions which are required to collect the relevant information in order to achieve the objective of this project. However, the questionnaire designed, is such a way that it could collect the information regarding the Outsourced employee as well as could get the same compared with the process of ACME roll employee & to get the suggestion so that effective process for outsourced employees could be maid.

34

SAMPLE QUESTIONNAIRE NAME: ORGANISATION: DESIGNATION: DEPARTMENT: 1. How effective you find outsourced manpower in your department. Poor Average Good Excellent

2. Are they fully involved in the project as regular the employee? Yes No Cant say

3. Is there any difference in the salary payout date of outsourced manpower than regular employees? 1 Day 2 -3 Day 1 Week More than 1 week

4. Is it fine to engage more than one Outsourced agency for a single project or not? Please specify. Yes No No idea

5. Are you fully aware about the process for outsourced employee? Yes 35

No Cant say

6. Do you feel that Outsourced employee fully aware of the process? Yes No Cant say

7. What is the frequency of the issues of Outsourced manpower? Daily Weekly Monthly None

8. Are you aware in case of any issue who is the concern person from ACME & VENDOR? Yes No Cant say

9. Is outsourced Employee getting reward & recognition as the regular Employee gets? Yes No Cant say

10. Do you feel full & final process of outsourced associate is fine? If not please suggest. Yes No Cant say

36

11 Are you getting good manpower through outsourced agency? Yes No Cant say

12. Do you feel the process for Outsourced manpower is good enough or it need to be modified? Please give suggestion. 1.. 2.. 3..

13. Please specify: Total no. of outsourced manpower in your department 1.. 2.. 3..

14. Please specify: Total no. of outsourced agency engaged with: 1.. 2.. 3..

15 Please specify: Major issues of Outsourced Manpower. 1.. 2.. 3..

16. Do you know what the benefits are or harm to involving outsourced manpower in the project. 37

1.. 2 3..

17. Do they get salary & other compensation on time? If not your suggestion. 1.. 2 3..

18.

Will you prefer to engage outsourced manpower to complete the project assigned to you in future.

1.. 2 3..

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ANALYSIS OF DATA ORGANISATION: Acme Telepower Ltd. DESIGNATION: DEPARTMENT: Total No. 1. Outsourced manpower effectiveness Poor 10 Average 30 Good 40 Excellent 20

Effectivness

Excellent 20%

Poor 10%

Average 30% Good 40%

Interpretation: 40% Mangers thinks that Outsourced manpower is good for the organization. 30% Mangers thinks that Outsourced manpower is so-so for the organization. 105 Mangers think that Outsourced Manpower is use less for the organization.

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2. Involvement in the project-

Yes 90

No 7

Cant Say 3

Involvement in the project

90

80

70

60

50

40

30

20

10

0 Yes No Cant Say

Interpretation: 90% Mangers thinks that Outsourced manpower is fully involved in the project work. 7% Mangers thinks that Outsourced manpower do not get involved in the project work. 3% Mangers dont have any idea about the involvement of manpower in their Project

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3. Payout Date:

Same Day 70

2 -3 Day 20

1 Week 8

More than 1 week 2

Payout Date
More than 1 week 2%

1 Week 8% 2 -3 Day 20%

Same Day 70%

Interpretation: 70 times salary payout happens with the salary of Onroll Employee. 20 times salary payout is delayed by 2-3 days. 8 times salary payout is delayed by 1 week. 2 times salary payout is delayed by more than 1 week.

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4. Collection Date: Yes 75 No 20 Cant Say 5

100 90 80 70 60 50 40 30 20 10 0
Yes No Can't Say

75

20 5

Interpretation: 75% Managers think that there should be more than one outsourced agency so that their would be a competition between them to give best services. 20% Managers thinks there should be only one Agency so that it could be taken care by one person only. Rests 5% dont have any idea about it.

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5. Awareness of the policy of outsourced employee:

Yes 50

No 40

Cant Say 10

100 80 60 40 20 0
Yes No Can't Say

50 40

10

Interpretation: Only 50 % managers were aware about the policy of outsourced employee. 40 % managers were not aware about the policy of outsourced employee Rest 10% dont have any idea about the processes.

43

6. Awareness of the policy among outsourced employee.

Yes 70

No 25

Cant Say 5

100 90 80 70 60 50 40 30 20 10 0
Yes No Can't Say

70

25 5

Interpretation: 70 % associates were aware about the policy. 25 % associates were not aware about the policy Rest 5% doesnt have any idea about the processes.

44

Frequency of the issues of outsourced employees.

Daily 20

Weekly 60

Monthly 25

None 5

100 90 80 70 60 50 40 30 20 10 0
Daily

60

20

15 5

Weekly

Monthly

None

Interpretation: 60% employees complain about the issues on weekly basis. 20% employees complain about the issues on daily basis. 15% employees complain about the issues on monthly basis. 5 % employee who sits in the office dont have any issues.

45

Awareness about the coordinator from ACME & Vendor Side

Yes 55

No 35

Cant Say 10

100 90 80 70 60 50 40 30 20 10 0

55 35

10

Yes

No

Can't Say

Interpretation: 55 % associates were aware about the coordinator from ACME & Vendor Side. 35 % associates were not aware the coordinator from ACME & Vendor Side. Rest 10% doesnt have any idea the coordinator from ACME & Vendor Side. 46

Awareness about the Full & Final Policy & Process

Yes 15

No 80

Cant Say 5

100 90 80 70 60 50 40 30 20 10 0
Yes No Can't Say

80

18 2

Interpretation: 80% managers were not aware about the full & final process even they have doubt that there is a such policy for Outsourced Employee also. Only 18 % managers were aware about the policy & were following it. Rest 2% doesnt have any idea such policy. 47

10 Good Quality Manpower

Yes 65

No 25

Cant Say 10

100 90 80 70 60 50 40 30 20 10 0
Yes No Can't Say

65

25 10

Interpretation: 65% Managers thinks that they are getting good manpower through outsourced agency. 15% Managers thinks that they are not getting good manpower through outsourced agency. Rest 10% doesnt have any idea about the Quality of the Manpower.

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11 Department wise manpower

Operation & Maintenance 1200

Project & Services 425

SCM 100

TSP 195

Others 150

2000
1800 1600

1400
1200 1000

1200

800
600 400 200 0 Operation & Maintenance Project & Services SCM TSP Others 100

425
195 150

Interpretation: 1200 manpower was involved in Operation & Maintenance work. 425 manpower was involved in Project & services. 100 No of manpower was working for SCM. 195 Manpower was working for TSP 150 Employees was working in different supporting departments.

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12 Agency wise manpower

Manpower 1200

Mafoi 425

Teamlease 195

Other 250

2000 1800 1600 1400 1200 1000 1200

800
600 400 200 0 Manpower Mafoi Teamlease Others 100 425 295

Interpretation: 1200 Manpower was through Manpower Agency. 425 Manpower was through Mafoi. 100 Manpower was through Teamlease. 295 Manpower was through different Agencies.

50

13 Agency wise manpower

Manpower 1200

Mafoi 425

Teamlease 195

Other 250

2000 1800 1600 1400 1200 1000 1200

800
600 400 200 0 Manpower Mafoi Teamlease Others 100 425 295

Interpretation: 1200 Manpower was through Manpower Agency. 425 Manpower was through Mafoi. 100 Manpower was through Teamlease. 295 Manpower was through different Agencies.

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14 Major issues of Outsourced Manpower

Salary 49

Reimbursement 24

Appointment Letter 12

Other 15

MAJOR ISSUES

Other 15% Appointment Letter 12%

Salary 49%

Reimbursement 24%

Interpretation: 1200 Manpower was through Manpower Agency. 425 Manpower was through Mafoi. 100 Manpower was through Teamlease. 295 Manpower was through different Agencies.

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SUGGESTIONS AND RECOMMENDATIONS After Going through the need of the Outsourced manpower, it has been found that outsourced manpower is very useful in todays scenario until everything is going to smooth. Outsourced manpower is not needed so many person from the Human Resource team to take care but one or two person can handle two to three thousand manpower alone. One person can handle the full life cycle of the Outsourced manpower & therefore the structure to handle the outsourced manpower is suggested as below

Sr. Manger HR

HR Executive

Representative of Outsourced Manpower Agency

Representative of Outsourced Manpower Agency

It need to be noted here that one person of HR can handle the things but he have to work proactively & have to fellow a well defined process below are the some factors which he need to take care Guidelines to be followed by HR Person 1 Strictly follows the process. 2 Modify the process as per the requirement of project. 3 Work proactively. 4 Need to educate other about the Policy & process. 5 He need to in regular communication with the field mangers. 6 Their should be a regular communication between vendor & HR person also. 7 Any HR Issues should be directed to Vendor only & employee should be directed to vendor only for their issues. Acme just needs to put an eye on the same so that it should be resolved on time. 53

8 No payment should be maid to Outsourced employee directly from ACME. 9 Should not make the Outsourced employee feel that they are not a part of the Company. 10 last but not least that their issues need to be attended as the issues of regular employee of company. On the basis of my study & the suggestion of the mangers I have designed some process under the guidance of my guide for Outsourced Manpower. We believe that if the process could be followed properly their would be no grievances of off roll manpower & whole process will be run smoothly.

RECRUITMENT PROCESS Below are the suggestions for the recruitment process

All the new joinees should be sent to vendor after the approval of Head of the department only for this their should not be direct communication between Manger & vendor. Every critical information such as salary & designation should be decided by HR only.

3 4

It should be taken care with speed so that work should not hamper due to Manpower. No Manpower should be engaged in the work without informing to Vendor.

5 6

Each Outsourced manpower should be informed formally that they are the employee of Vendor not ACME. Induction should happen through vendor only & need to be informed that they are deputed to their client for a fixed period or as per the requirement of project.

54

Below is the process flow chart for the recruitment of Outsourced manpower

RECRUITMENT PROCESS FOR OFF ROLL ASSOCIATES

0 DAY

No
1ST DAY

Yes
2ND DAY

No

Yes
10 TH DAY

Yes

11TH DAY

12TH DAY

1ST DAY OF JOINING

4TH DAY FROM D.O.J.

(Initiated By)

(Recommended By)

(Approved By)

55

PAYROLL PROCESS

PAYROLL PROCESS FOR OFF ROLL ASSOCIATES

16TH OF EVERY MONTH

17TH OF EVERY MONTH

17TH OF EVERY MONTH

NOT OK

OK
18TH OF EVERY MONTH

21TH OF EVERY MONTH

23RD OF EVERY MONTH

NOT OK

OK
25TH OF EVERY MONTH

26TH OF EVERY MONTH

28TH OF EVERY MONTH

29TH OF EVERY MONTH

30TH OR 31ST OF EVERY MONTH

(Initiated By)

(Recommended By)

(Approved By)

56

POINTS TO BE TAKEN CARE FOR PAYROLL

1 2 3 4 5 6 7 8 9

Even the whole payroll & payment vendor is responsible, It need to controlled at ACMEs End, otherwise vendor will not take the things seriously & issues will occur. Attendance should be controlled by the HR & only paid days should be sent to Vendor. Leave records should be maintained at Vendor End. Back sheets of salary should be checked properly & should be verified with the attendance sent to vendor only then payment should be maid. Account should also do the payment in such a way that vendor could get time to mange cheques & bank transfer. Payment to the employees by vendor should also need to be monitored properly so that their would be no grievances due to the salary. Payment information that wether the salary is paid through cheque or its bank transfer should be informed to the respective manger. HR needs to check the salary transferred by the vendor. Pay sheet or wage register should be checked after every payout.

10 Calculation of ESI & PF should be checked. 11 Remittance details of PF,ESI & PT should be taken every month from Vendor & need to checked properly 12 Salary slip should contain The Information of deduction or addition clearly. 13 Paid days should be mentioned clearly 14 PF & ESI no should be mentioned in the salary slip 15 If salary paid through cheque, its no should be mentioned in the salary slip. 16 If the salary is taxable then proper intimation for the tax shaving should be given by the Vendor. 17 PF, ESI challan should be submitted on monthly basis. 18 Any new joinee should be updated in the master file on same day 19 Any designee should be updated in the master data at the same time as the information received from the field. 20 Salary should be paid on time & this will remove the 60% grievances.

REIMBURSEMENT PROCESS Outsourced manpower should be informed properly about their entitlement & process of reimbursement. Most of the grievances come due to this only as neither the associate nor the Mangers are aware of the process. Employee pays the same from his pocket due to which he also become bit lazy to submit the bills & this cause a delay in payment. After studying the work nature of the employee I have suggested below process so that reimbursement could be paid on time.

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POINTS TO BE TAKEN CARE FOR REIMBURSEMENT

1 2 3 4 5 6 7 8 9

Entitlement & forms should be given at the time of Joining. Any change in policy should be informed through proper channel. Payment of reimbursement should happen through Vendor only no direct payment to the employee. Bills should be verified with the circle head. Each & every employee should be informed about the reimbursement cycle. They should submit the bill on time & as per the guidelines of the process. Reimbursement more than two month should not be entertained. Payment of reimbursement should be done on time. Reimbursement should be given same importance as the salary.

10 Tracking of the reimbursement payment should be done after every payout done by Vendor. 11 Information about the payout & what amount of payout is disbursed should be shared with managers. 12 Any deduction in the reimbursement should be informed to the associates. 13 Their should be a upper cap on the reimbursement amount. 14 If possible fix the reimbursement for a particular project. 15 If reimbursement is fixed than need to be taken care that it get updated automatically in the fixed salary every time Performance management system Their was no performance review earlier which was causing lot of issues & unrest among the employee. Therefore we have suggest a policy for the Outsourced manpower also so that they could also feel pride for their work & other associates could get motivation seeing other apprised, still there are so many things which could be taken care. Points to be remembered 1 2 3 4 5 6 7 8 9 Their should be a clear policy for Appraisal. Time line & eligibility criteria should be clearly defined. Cut off date of salary revision & employee joining should be justified. Salary revision % should be fair & should be conveyed effectively. Reward should be given for a genuine achievement. Reward should be given in front of all employee Reason of reward should be communicated for all. Their contract renewal should happen on time. Letter of renewal salary revision should reach to them on time.

10 Mangers should personally give the Letter to them. 60

REWARD & RECOGNITION PROCESS

PROCESS FOR SARAHANA AWARD

Step 1

Each Head of Department /Functional Head will be assigned an employee welfare amount sanctioned for Kudos/ Sarahna Award.

Step 2

The HoD/ Functional Head can recommend a contractual and piece rate/outsourced manpower for the award by filling up the nomination form (format attached)

Step 3

The HoD/ Functional Head would then submit the nomination form to HR coordinator either in hard copy or through email (format attached)

Step 4

HR, after receiving the nomination, would recommend it to the concerned contractor (format attached)

Step 5

The contractor, after acknowledging the nomination, would himself/ herself arrange for the award and the amount will be reimbursed by the company

Step 6 .

The HoD/ Functional Head will congratulate the recipient and provide the token of appreciation in person, in presence of his team members 61

Below is the evolution criteria for the Sarahana award-

Evaluation Criteria: Some of the broad guidelines on what may comprise of exceptional effort / contributions are as follows: Beyond the call of duty assignments Exceptional performance Demonstrating ACME values under stressful and difficult situations Instances of Customer Delight Managing critical situations effectively Taking successful initiatives

The above are indicative and not exhaustive.

Full & final process for off roll associates

Once the associates have decided to quit his exit from the system should also happen systematically. Employee should not feel that he was misbehaved at last time or company has become arrogant to his decision. From the questionnaire we came to know that most of the managers are not aware about the full & final process of outsourced manpower even they have a doubt that there is a such policy for the outsourced manpower. Only few managers know that there is a full & final process for the outsourced manpower & it should be followed. According to the managers they are working on low profile therefore there is no need of full & final, but some managers thinks that as they are working for our organization so there should be full & final process for them & there should be retention plan for the outsourced manpower. They have shown the recruitment & training charges are much higher than the expectation of the leaving employee. On the feedback received from the managers I have discussed same with the departmental head of different project & then discussed same with the HR operation manager. On the feedback received I had made a process of full & final for the Outsourced manpower. Flow chart of the full & final process is given below. The same has well accepted by the Mangers & now every exit his happening through the process mentioned below.

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Flow Chart Full & final process for off roll associates

Step 1

Associates Submit resignation to respective mangers (addressed to respective Vendor)

Step 2

Manger sends no dues confirmation or asset details to HR

Step 3

HR sends the Resignation letter to respective vendor with no dues confirmation or amount deduction details

Step 4

Vendor prepares the full & final invoice & sends the same to Acme HR

Step 5

Acme clears the payment & sends the cheque to vendor

Step 6

Vendor sends the cheque with full & final statement to the associate & confirm the same to ACME HR.

(Initiated By)

(Recommended By)

(Approved By)

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Policies for off roll associates

Imprest
It is a one time payment paid to the technicians & engineers only. The Maximum limit of imprest is Rs. 7000 per employee which will paid within a weeks time of information of joining received from the region .Imprest will be adjusted in the full & final settlement of the associate.

Leave Policy
Associates are eligible for one day paid leave every month. Unavailed leave carried forward but will lapse at the end of the calendar year. These leaves will not be enchased. The associate should proceed on leave after getting approval from the supervisor.

Off Roll To On Roll Conversion

There are three criteria for taking off Roll associate to On Roll 1 Should have completed min one year of service with Acme. 2 Should be outstanding Performer for this period. 3 Should have minimum certificate (2 year course)

Salary revision
Salary revision will be done after completion of one year of the service with Acme & approved by the vertical head.

(Initiated By)

(Recommended By)

(Approved By)

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Conclusion

Outsourced Manpower is a very good option available in today scenario. As the industries are growing & they are concentrating more on core business its better to use outsources manpower for the work. It is very cheap & responsibility goes to agency only. It has been also seen that outsourced manpower is a very good resource where the project involved field jobs as the lots of HR work need to be done to control such manpower & through the outsourced agency it could be controlled very easily as they already have the offices in pan India & their process, complacencies everything remain in place. The efficiency and quality of the outsourced Manpower & process is depends upon: It has been seen that wether the employees are outsourced or not HR policies are process should be in place & get communicated clearly to both employees & the manger. Here the roll of the outsourced agency is very important & the success of the process depends on the services provided by them. Therefore its suggested to work with only professional manpower agencies & before getting the contact signed their process need to be understood clearly. How effectively the entire process has been communicated to the both employee & the Mangers. Because most of the problem occurs due to miss communication. Where mangers thinks that outsourced manpower is good & they can best execute the project through these manpower they were unhappy with the process. Even the processes were in place it was not communicated to the manager. When the policies are in place & communicated well also it is important that the same should be get followed as per the TAT because success of the policy depends on it & for that both the outsourced agency & Acme IS responsible to get the things done on time. In the payroll process it depends that what level of accuracy the calculations have been done during the payroll process for it the input should come on time & should be accurate. Outsourced manpower are equally good as the on roll manpower & give equally good result. We can get better result if they get the feeling that even they are employees of an outsourced agency their learning & experience will be counted of ACME only. For this ACME should ensure that they should grow while they are working for the Acme. It should also be noticed that wether the outsourced system is flexible enough to rectify the errors (if any), occurred during the implantation process, and to overcome the negative impact, that could be caused, in a quick successation of time.

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SUMMARY OF PROJECT REPORT

1 Outsourcing clearly provides an opportunity to increase the efficiency and quality of payroll service while spreading the costs over time. These benefits are typically achieved through extensive automation, centralization of activities such as support, and standardization. Manpower Outsourcing helps the company to avert the gathering of a large number of resumes on daily basis, and then to begin the process of searching and selecting the perfect one among the thousands of candidates. Manpower Outsourcing raises the flexibility in the process of hiring, reduces the responsibility of people, hikes the resume data bank and tears of a company's responsibility from compensations, visionary fund handling, bonuses, maternity benefits, professional taxes- resulting obviously in an overall increase in the core competencies and profit of a company

There are a number of potential drawbacks, however, including: Service providers impose standard working practices on customers, which may reduce flexibility in key areas such as payroll cut-off times and error correction. It may be harder or costlier to get access to information. A cost is associated with managing the service relationship.

Under a managed services agreement, the client will continue to be responsible for running significant parts of the of the related process (e.g., capturing pay data). The client also retains legal responsibility for tax and regulatory issues. 2 Improving Outsourced management by implementing an system incurs significant up-front costs as well as ongoing outlay. Modern, Internet-based systems can provide many of the benefits offered by outsourcing, however, in terms of automation of manual processes, introduction of best practices, centralization of support, and error reductionand sometimes at a cheaper cost. Running payroll in-house may also offer advantages over some forms of outsourcing, including: Greater flexibility in overall management, rather than conforming to outsourcers standardized processes. Improved access to management data. The ability to run HR on the same database, streamlining workflows and data management.

3. Organizations should not assume that outsourcing will always be a cheaper alternative. A true cost comparison between the two approaches should be based on an assessment of the total outlay over three to five years. Key factors include: The up-front cost of running an in-house application includes the license fee and implementation costs. The latter can be reduced depending on the choice of supplier and the amount of customization work required. The ongoing costs include staffing, training, support, cost of future upgrades (if required), and maintenance fees.

In addition to contracted fees, any assessment of outsourcing costs should examine the impact of future business growth (because the cost of any per employee fee agreements will rise as headcount climbs), cost of retained 66

payroll-related activities (such as time recording), and cost of managing the business relationship. Prospective customers may also want to make contingency for unpredicted costs that fall outside the scope of the agreement.

Manpower outsourcing can impact workers or employees of the company. Sometime companies cut jobs in their companies and outsource the work to a third party. Most often outsourcing companies are not able to meet the standards and timelines.

There are also concerns related to fraud and security, as there is always a chance of identity theft or misuse of sensitive information. First and by far the most important aspect is cost reduction of development of overall project.

Hiring manpower from an outsource company who has good and knowledgeable skilled professionals in the field, can improve quality of the product. Lowering pressure on HR department of hiring and maintaining skilled professionals.

10 Companies can put more emphasis on designing and research of a product rather than putting effort on meeting deadlines

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SAMPLE QUESTIONNAIRE NAME: ORGANISATION: DESIGNATION: DEPARTMENT: 1. How effective you find outsourced manpower in your department. Poor Average Good Excellent

2. Are they fully involved in the project as regular the employee? Yes No Cant say

3. Is there any difference in the salary payout date of outsourced manpower than regular employees? 1 Day 2 -3 Day 1 Week More than 1 week

4. Is it fine to engage more than one Outsourced agency for a single project or not? Please specify. Yes No No idea

5. Are you fully aware about the process for outsourced employee? Yes No Cant say 68

6. Do you feel that Outsourced employee fully aware of the process? Yes No Cant say

7. What is the frequency of the issues of Outsourced manpower? Daily Weekly Monthly None

8. Are you aware in case of any issue who is the concern person from ACME & VENDOR? Yes No Cant say

9. Is outsourced Employee getting reward & recognition as the regular Employee gets? Yes No Cant say

10. Do you feel full & final process of outsourced associate is fine? If not please suggest. Yes No Cant say

11 Are you getting good manpower through outsourced agency? Yes No Cant say

12. Do you feel the process for Outsourced manpower is good enough or it need to be modified? Please give suggestion. 1.. 2.. 3..

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13. Please specify: Total no. of outsourced manpower in your department 1.. 2.. 3..

14. Please specify: Total no. of outsourced agency engaged with: 1.. 2.. 3.. 15 Please specify: Major issues of Outsourced Manpower. 1.. 2.. 3.. 16. Do you know what the benefits are or harm to involving outsourced manpower in the project. 1.. 2 3.. 17. Do they get salary & other compensation on time? If not your suggestion. 1.. 2 3.. 18. Will you prefer to engage outsourced manpower to complete the project assigned to you in future.

1.. 2 3..

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REFERENCES

I have got good theoretical material from below mentioned Url http://www.acmetelepower.com/ http://www.mafoi.com/ http://www.teamlease.com/ http://www.manpower.com/

While taking ideas for the process I got a very good help from the books of the syllabus of HR it has given a very good idea on the flow of information & documentation. On the basis of the knowledge which I got from the syllabus books & the personal experience all the process are running fine in the organisation and very well appreciated by the Mangers

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