Thesis On Outsourcing

They believe that outsourcing could benefit to organisations such as reducing overhead costs, gaining expertise from outside agencies, minimizing the regular workload of HR staff and improving quality and efficiency of the organisation.

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Therefore, outsourcing is found to limit the development of distinctive competencies and to create inefficiencies because agencies may be lack of firm-specific knowledge and engage in opportunistic behavior.

(Huselid 1995) In this part, we would discuss whether outsourcing could bring benefits or be harmful to the organisations.

For example, outsourcing permits the firms to redirect their resources from non-core activities towards other activities then results in focusing on customers’ needs and to provide better customer service.

Moreover, if part of HR function, like routine administrative, is being outsourced, the resources of HR could be used on the role of change agent and strategic business partner in the organisations.

As the authors state, firms can gain competitive advantage through outsourcing which could provide better, faster and cheaper the best-in-world HR services (Jeffay, Bohannon and Laspisa 1997, p.42).

Thesis On Outsourcing Harriet Tubman Essays

Switser (1997) also has similar point of view, he pointed out that outsourcing the transaction-based HR activates can free HR managers and other managers to struggle with strategic business issues (Switser 1997).So far it seems a lot of positive outcomes of outsourcing.However, one of the benefits – cost reduction, which is deemed as the firm desire benefit from outsourcing, is a controversial topic and raise counter-argument in some literatures.Because of the globalization and increasing environmental complexity, therefore, in my point of view, researchers should not confine to some regions.Next issue to be discussed in this paper is about whether HR outsourcing is a tool for achieving competitive advantage.In the article, the authors mention there are three benefits of outsourcing that also are reasons for the firms to outsource their HR functions.These benefits include enhanced value of the firms, increase speed to change and reduced costs.We use cookies to offer you a better experience, personalize content, tailor advertising, provide social media features, and better understand the use of our services.To learn more or modify/prevent the use of cookies, see our Cookie Policy and Privacy Policy.Many surveys and academic researches were conducted in the past decade and shows that the use of HR outsourcing is growing and continuing to increase.More firms have started to outsource their HR functions for a variety of reasons.