Human Resource Outsourcing Essay - 2095 Words

LITERATURE REVIEW OUTSOURCING: Outsourcing is a strategic activity in which some of the internal activities of the organisation are delegated to external firms because of various reasons such as: - To bring in better focus for organisation - To exercise better control over operating costs - To get greater flexibility to define the requisite service readily available - To sustain the same level of competency over a period of time Usually the firms to which the activities are outsourced are specialized in their area of work and so the parent firm gets the advantage of getting the work done through competent employees. Therefore, outsourcing gives competitive advantage to the companies which can be easily sustained by them without†¦show more content†¦Improved employee morale: Knowing that the organisation is using highly qualified specialists may cause employees to feel that the organisation has the employees’ best interests in mind. Improved service quality: Surveys have shown that improved service quality often outranks cost savings as a catalyst for outsourcing and researchers suggest that improved service can be achieved if companies oversee the entire outsourcing process, including selecting the right provider, setting goals for those providers, measuring performance, and increasing communication efforts. DISADVANTAGES Increased direct costs: Many day to day costs are hidden costs. When these are identified as specific costs through the outsourcing agency, these costs may appear to be high. Decreased employee morale: Employees have to deal with people outside the organisation whereas previously they had to deal with individuals they knew and worked with. This creates a sense of depersonalisation and thus results in decreased employee morale. Poor service quality: While enhanced service is a goal of outsourcing, whether the goal is really achieved is still up for debate. The research doesn’t always suggest that service quality is improved through outsourcing. A recent study found that while cost saving can be done by outsourcing, usersShow MoreRelatedHuman Resources Outsourcing : Outsourcing2141 Words   |  9 Pagescompetitive benefits, the human resources outsourcing management is facing a tremendous challenge. Human resources outsourcing (HR Outsourcing) one kind of choice provide by human resource service working mode. It is a HR service mode that offer variety human source management outsourcing to third party provider which can improve efficiency, save costs and win the competitive advantages of strategic management of HR. Keywords: Human Resources Outsourcing; HR Outsourcing Service Providers; HR Services;Read MoreOutsourcing The Human Resource Function1422 Words   |  6 PagesOutsourcing the human resource function has many advantages and disadvantages for organizations. 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