In business world today, the main focus is delivering company’s core competency as to generate sustainable competitive advantage. The core competency is being described as what company does the best and in the same time, generates profit for the company. As the company focusing on their core competency, other components of the company require as much attention as the core to keep the company stable. However, it difficult for company to maintain all the aspect of their business at top level and even by that will cost them fortune. That’s when Outsourcing concept come into the picture.
Outsourcing is the alternatives for company to hired external company to be their part of function. The execution of specific function for the company will enable the company to focus on their core competency. One of the most commonly function of management to be outsources today is the human resources department. Delmotte, J and Sles, L. (2008) stated that their researches on outsourcing of Human Resources lead to better time management as well as resources that support both tactical and strategic contribution. These factors later on enable stable and longer focus on supporting the core competency of the company. In other words, once company enable their human resource to be handled by the expert of the fields, the company now can focus more on their main competency. As the expert of the field charge on the HR, better result is shown which coming back in enabling company to perform better on the overall view.
Extending the view from another point, the trends of outsourcing not just imply to company function that they are not well managed only. (Kosnik & Hoover, 2006) The situation lead to outsourcing might be caused by lack of expert on that field. Kosnik, T. and Hoover, K. (2006) find in their research that outsourcing in term of staffing firm enable a company to obtain more expert into the workforce. In a way, instead of hiring single personal that course higher,...
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