Human Resources Outsourcing
ABSTRACT
In this globalization era, Human Resource Outsourcing (HRO) has come to the surface of business life as a solution. When Multi-national companies decided to outsource its Human Resources Operations, they had only one major goal in mind and that is cutting costs. They have decided to outsource end-to-end human resource operations to third party and today it has become the greatest of exposures. This interesting solution is the main reason why this paper was being written. This paper will discuss about the real concept of outsourcing especially human resource outsourcing, advantages and disadvantages of outsourcing, and so forth. By discussing all that, it will be clear why human resource outsourcing is quite a trend among Multi-national companies these days.
OUTSOURCING
It is important to know the definitions of outsourcing before we go to further discussion in this paper. Outsourcing is about using the service of third party in doing particular role or function. Organizations usually seek outsourcing as efficient and cost effective ways to handle global HR operations. In defining outsourcing, every individuals and institutions has their own definition; therefore there are lots of definition that is being quoted in this paper, as follows:
1. According to Wikipedia, outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering firm or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources.
2. Outsourcing is, in simple words, giving the responsibility and the management of an activity to an external supplier (manufacturing activities) or provider (service activities), instead of doing it internally. It is different from subcontracting, which implies an obligation of
In this globalization era, Human Resource Outsourcing (HRO) has come to the surface of business life as a solution. When Multi-national companies decided to outsource its Human Resources Operations, they had only one major goal in mind and that is cutting costs. They have decided to outsource end-to-end human resource operations to third party and today it has become the greatest of exposures. This interesting solution is the main reason why this paper was being written. This paper will discuss about the real concept of outsourcing especially human resource outsourcing, advantages and disadvantages of outsourcing, and so forth. By discussing all that, it will be clear why human resource outsourcing is quite a trend among Multi-national companies these days.
OUTSOURCING
It is important to know the definitions of outsourcing before we go to further discussion in this paper. Outsourcing is about using the service of third party in doing particular role or function. Organizations usually seek outsourcing as efficient and cost effective ways to handle global HR operations. In defining outsourcing, every individuals and institutions has their own definition; therefore there are lots of definition that is being quoted in this paper, as follows:
1. According to Wikipedia, outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering firm or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources.
2. Outsourcing is, in simple words, giving the responsibility and the management of an activity to an external supplier (manufacturing activities) or provider (service activities), instead of doing it internally. It is different from subcontracting, which implies an obligation of
References: Dessler,G. Human Resource Management (Eleventh International Edition). Singapore: Pearson, 2008. Shiravastav,P. Outsourcing. 2007 (journal) Renauz,M Norwood et al. Off-Shoring: An Elusive Phenomenon. 2006 http://en.wikipedia.org/wiki/Outsourcing