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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.
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