|
|
What Are the Advantages and Disadvantages of Outsourcing Human Resources Functions? (Report Date: January 2003, Full Report: 20 pages) Summary This report examines the benefits and shortcomings of outsourcing HR (human resources) functions. The growing trend in outsourcing human resources functions has taken companies all over the world by storm. However, just because the market for outsourcing HR functions is booming does not mean that outsourcing is the ultimate solution in all cases, or that there are no risks involved. Although it is true that outsourcing administrative or peripheral HR activities can be cost-effective and can help human resources professionals be more productive and work more efficiently towards an organisation‰s strategic goals, companies need to be aware of the potential risks and problems that outsourcing can bring, and need to handle the people aspect with great care during the outsourcing process. Caution is essential when considering outsourcing as an option. The decision to outsource needs to be planned and carried out carefully and selectively, and with the backing of HR and employees likely to be affected by the process. If companies are aware of the drawbacks, and take preventative measures to counter potential difficulties that could arise as a result of outsourcing, then it looks likely that the pros of outsourcing will significantly outweigh the cons. This report discusses the advantages and disadvantages of outsourcing human resources functions.
|
