Master Thesis On Outsourcing

Master Thesis On Outsourcing-38
For example, outsourcing permits the firms to redirect their resources from non-core activities towards other activities then results in focusing on customers’ needs and to provide better customer service.Moreover, if part of HR function, like routine administrative, is being outsourced, the resources of HR could be used on the role of change agent and strategic business partner in the organisations.

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Besides, if the firms use sole supplier, monitoring costs are added to retain sufficient expertise to supervise and monitor the performance of the supplier in order to avoid the supplier perform inadequately (Siegel 2000).

As a result, costs for outsourcing may be greater than the costs if the firm handles HR functions internally.

In addition, outside agencies also could provide specialists and legal advices for such firms in which internal expertise unlikely could be employed due to the high cost.

As a result, firms can improve compliance with governmental regulations and minimized penalties (The 2002; Mobley and Maurer 1998).

However, Huselid (1995) argues that outsourcing some HR functions may reduce competitive advantage.

He points out that some HR functions are seen as cost centers but other may create value as part of a firm’s strategic infrastructure..pass_color_to_child_links a.u-inline.u-margin-left--xs.u-margin-right--sm.u-padding-left--xs.u-padding-right--xs.u-absolute.u-absolute--center.u-width--100.u-flex-align-self--center.u-flex-justify--between.u-serif-font-main--regular.js-wf-loaded .u-serif-font-main--regular.amp-page .u-serif-font-main--regular.u-border-radius--ellipse.u-hover-bg--black-transparent.web_page .u-hover-bg--black-transparent:hover. Content Header .feed_item_answer_user.js-wf-loaded . As the authors state, firms can gain competitive advantage through outsourcing which could provide better, faster and cheaper the best-in-world HR services (Jeffay, Bohannon and Laspisa 1997, p.42).Switser (1997) also has similar point of view, he pointed out that outsourcing the transaction-based HR activates can free HR managers and other managers to struggle with strategic business issues (Switser 1997).In today global business environment, firms are facing the increasing of the competitiveness, new technology and corporate restructuring, such factors force firms to seek and sustain competitive advantages by emphasizing on profitability and productivity of each department.For this reason, today some firms embrace outsourcing concept through outsourcing all or part of HR functions could reduce cost and increase the effectiveness of HR department.Therefore, it was found that arguments are raised in many strategic HR literatures.In this paper, we will examine a prescriptive article “Beyond Benefits: The Changing Face of HR Outsourcing” and discuss different perspectives on the related issues which are provided by other authors in other SHRM literatures.Indeed, these are not only the benefits to the firms.Another benefit does not mention in the article including free sources for other purpose.


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