The Challenges Of Outsourcing Human Resources Commerce Essay

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Heawood(2001) says that, "outsourcing of the Human Resource Functions is not different from outsourcing any other activity in terms of the problems it faces."More and more enterprises are rotating to Human Resources Outsourcing (HRO) as a way of eliminating the problem of management and moving their aim back to people strategies. They are identically looking to save charges, but progressively, organisations are looking in the direction of HRO to supply very good service to their employees.

Marquez (2008) advocates that no service provider is best at all Human Resource purposes and therefore diverse purposes should be bound to distinct vendors to bypass having one throat to choke.

A scheme that numerous companies have engaged to enrich their Human Resource function is keeping the strategic HR purposes and outsourcing the administrative occupations for example payroll, human asset data administration, depart administration, reimbursement & advantages and other administrative jobs. In the past couple of years there have been increasing tendency of companies outsourcing numerous of their more strategic purposes for example teaching and development, recruitment and statutory compliance. (Anonymous, 2008) 

One of the outsourced human resource functions is recruitment and selection process. This is a value adding element for every organization. So the organizations use professionals for this process. There are many outsourced companies that offer employment processing services to their clients. Another outsourced HR function is training and development. It means the selected candidates are being sent to the professionalized firms for training and development

The main objective of this dissertation will be to research best practice framework for outsourcing the HR functions in India, which will give benefit to companies who outsource.

Rationale of Research

Outsourcing is an enterprise form that moves the operational command to a third party that is responsible for the output or services that was previous conveyed out by the business itself (Lankford and Para.1999).Many authors  assertion that the major objective of outsourcing is cost cutting (McFarlan and Nolan, 1995, Loh and Venkatraman, 1992 and Cross, 1995). While Quinn and Hilmer (1994) claim that business outsource to focus on their centre competencies calling it as strategic outsourcing.

The yearn to study on this subject locality began from the investigators individual meet with outsourcing of diverse human asset functions. The yearn intensified when this investigator was granted entire blame for outsourcing human asset function where in there was a need for setting up a method for outsourcing. Fostering this, during the equivalent period media bought towards light various companies that had unpleasant experiences with outsourcing due towards miss management. This steamed the yearn towards innovation onto this issue towards benefit experience and information onto the latest greatest tradition within outsourcing of human resource function.

Objectives of Research

The principle aim of this dissertation is to demonstrate that outsourcing of Human Resource Functions determination ought to be aligned with the key enterprise approach, in other remarks it ought to be an integral part of the company's overall strategy formulation process. This will be progressed to by proposing best Practice Framework for outsourcing Human resource Functions.

The beginning issue of the study task is formulating and showing the study subject. This research subject was picked due to investigators past understanding in Outsourcing Human Resource Functions. The subsequent objectives were formulated under the guidance of researcher's study supervisor.

To analyse if the organisations have clear procedures to follow outsourcing of HR functions.

To determine the purpose of outsourcing the human resource functions like training and development, recruitment etc.

To explore the companies views on outsourcing for HR functions.

To investigate the limitations of outsourcing HR functions and what practices the companies should adopt to overcome the problems.

To give conclusions and recommendations to the organisations being researched.

Research Question

 To advocate the above referred objectives this research shall also react and clarify the chasing questions.

What is outsourcing?

Why outsourcing?

How is outsourcing conceded?

HR outsourcing

To outsource or not? Risks


"The research or scientific hypothesis is a formal affirmative statement predicting a single research outcome, a tentative explanation of the relationship between two or more variables". (Singh and Bajpai). The outcomes of Hypothesis eliminates ambiguity and replies the research problem, but not vital for every study (Kumar, 1999).  This study does not have a hypothesis but was motivated by the individual knowledge in outsourcing Human Resource purposes and considering the ideas and justifications of the outsourcing trend. The aim of this study is to enquire the connections between outsourcing and value for money and to assess its influence on diverse processes.


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