Outsourcing In HR

  • Executive Summary

    The aim of this report was to investigate what outsourcing practices exist today in human resource management. There was a necessity to cover a number of crucial topics in order to understand what aspects of human capital management need to be considered, when making a decision to outsource human resource functions. In addition, it was significant to define the implications of HR outsourcing related to organizations and their stakeholders.

    As far as the first aim of the report is concerned, it was necessary to analyze the reasons for human research functions outsourcing. Having studied all the reasons, we have come to the conclusion that there are two groups of factors influencing the decision to outsource, namely internal and external. Internal factors are associated with the benefits to employees, such as ability to focus on core business activities while external factors are related to the benefits the company and stakeholders enjoy, namely cost reduction, increasing brand awareness, and building of strong reputations, etc.

    Further, the paper discussed some trends in human resource outsourcing practices. The trends are mostly related to the use of innovative technologic solutions and active recruitment process with the help of social media.

    The most significant disadvantages were covered in order to ensure that the companies are able to make a weighted decision, which includes the risk management or risk prevention policies. The major disadvantages of HR outsourcing are reduction of some strategically essential capabilities; companies may become excessively reliant on supplies; and outsourcing is occasionally linked to the higher cost.

    Further, the paper discussed decision making process related to the situations, in which it is advisory to outsource HR functions and situations when it is preferable to deal with the HR tasks in-house. This section covers such aspects of business process management as dependency risk, trust, spillover risk and strategic capabilities.

    Moreover, the current work discussed the influence of legal and cultural environment on human resource outsourcing practices. It was highlighted that technological revolution affected the legal environment, which led to drastic changes in HR practices. Cultural aspect has also a great influence on the way HR functions are performed.

    In addition, paper considered the current situation in Europe, the United States and Asia has and provided some comparison in order to define similar or different HR outsourcing practices in these parts of the world.

    Finally, some of the implications for stakeholders and organizations were discussed. It is concluded that there are two categories of implications, such as positive and negative. Some recommendations and conclusions are presented in the final part of the report.

    Writing a response paper on HR outsourcing was pretty interesting for me as for the professional writer who working at papers-land writing agency and proud of fact to be a part of this good team.