HRM Outsourcing, Essay Example

Importance of HR Outsourcing

Outsourcing implies contracting labor in which case the company’s HR plays a vital role in outsourcing successful transition. Due to globalization which is associated with current global business, it has been imperative to minimize complexities associated with the management of daily issues of human resources more accurately to facilitate handling of core business of the organization. Outsourcing firms are usually ready to render their services to meet the requirements of human resources of an organization. Most of these firms have the potential of meeting the general HR requirements of the organization with a high degree of efficiency (Marquez, 2007).

However, some other firms are only able to meet specific requirements of HR

The role played by HR outsourcing in an organization includes the following:

  • Management of organization structure in addition to meeting the requirements of staffing
  • Recruitment of staff, their training as well as development
  • A follow-up of the objectives of the departments, strategies as well as goals
  • Training of staff and managers
  • Administration of benefits
  • Overseeing the programs of employee orientation

The Human Resource department in an organization has the duty to oversee employees transfer together with their statistical data in as far as the outsourcer is concerned. Monitoring the project success is also an important consideration. On successful completion of the project followed by the onset of renewal stage of the project, involvement of Human Resource department is also a preliquisite in issues of transfer of data and renegotiation of the project or its extension (Burman, 2006).

HR Outsourcing relate to strategic HRM

The need to identify appropriate strategies of cutting costs and the shrinking labor force in an organization requires the collaboration of HR outsourcing to strategic HRM in the organization. Sometimes an organization is caught in a situation of overburdening their employees or being behind their anticipated schedule. At this point, the strategic HRM option is outsourcing. Due to the economic climate that is prevalent in the current business scenario, the organizations are forced to embrace the option of outsourcing in an attempt of maintaining their competitive edge. Outsourcing some business processes in specific functions is gaining popularity with the aim of attaining improved service delivery and also facilitates the professionals in HR to be active in strategic roles in organizations.

Based on some surveys, some reasons and specific functions that companies outsource became evident. HR departments intend to focus on organization strategy as they save money for their organizations. Improvement of compliance and the level of accuracy also featured as an important accomplishment behind outsourcing. Most organization also lack basic experience among their internal labor force and this gap can only be filled by outsourcing. Advantages associated with the advancement in technologies are also better achieved through outsourcing. The core businesses of the organization are better achieved by outsourcing as the company is put in a better position of rendering services that it could not achieve without outsourcing.

Through outsourcing, the company is able achieve influential and also strategic role of HR function. Any organization is required to carefully consider outsourcing decision because it may not yield positive benefits to all organizations (Blyth, 2006).  The efforts associated with transferring the responsibilities in a smooth manner are an important consideration in the process of outsourcing. Reduction of costs, improvement of HR delivery effectiveness of, achieving of greater expertise, an upward movement of HR in the value chain and aid the growth of the organizational should be the set objectives of strategic HRM behind outsourcing



Blyth, A. (2006). “A sea change for outsourcing”. Director, 59(10), 39, 41.

Burman, R. (2006). “Thinking of Outsourcing to India? Think Again”. Workspan, 42-44.

Marquez, J. (2007). “Not in for Outsourcing”. Workforce Management, 86(3), 1, 18-21.