Critical Factors in Human Resource Outsourcing

Outsourcing has infiltrated the world of human resource management in a major way. Over time the number of organizations skilled in performing specific human resource activities has grown to the point where there is now a general provider or a specialist provider organization that can perform almost...

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Bibliographic Details
Published in:Journal of management research 2013-10, Vol.13 (4), p.187-195
Main Authors: Caruth, Donald L, Caruth, Gail D, Haden, Stephanie S. Pane
Format: Article
Language:English
Subjects:
Confidentiality
Decision making
Economies of scale
HR outsourcing
Human resource management
Knowledge
Outsourcing
outsourcing activities
outsourcing advantages
outsourcing disadvantages
outsourcing relationships
Personnel policies
Studies
Subcontractors
Success factors
Succession planning
Trends
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Summary:Outsourcing has infiltrated the world of human resource management in a major way. Over time the number of organizations skilled in performing specific human resource activities has grown to the point where there is now a general provider or a specialist provider organization that can perform almost any human resource management task or activity. This article aims to identify some of the key elements necessary for successful outsourcing. For outsourcing of human resource management activities to be truly effective, companies must understand what can be outsourced as well as what cannot be outsourced. This article presents a hierarchy that identifies the kinds of activities that lend themselves to outsourcing and then it identifies the characteristics that preclude certain functions from being outsourced. Successful outsourcing of human resource activities also demands that organizations know and understand the advantages and disadvantages of outsourcing. Another prerequisite for successful outsourcing is to understand what actions are necessary to create a successful ongoing relationship between the company doing the outsourcing and the subcontractor or outsourcing firm.
ISSN:0972-5814
0974-455X
0974-0287