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Human Resource Outsourcing

Companies outsource many of their human resource functions. Answer the following questions about HR outsourcing:

1. What factors should be considered when making the outsourcing decision?
2. What specific human resource activities are appropriate for outsourcing? Why?
3. What types of activities should not be outsourced? Why? Provide specific examples.

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RESPONSE:

1. What factors should be considered when making the outsourcing decision?

i) Saving the company money
ii) Leading to service improvement
iii) Leading to employee and customer satisfaction
iv) Maximizing resource availability across their organization.

And,

v) if it is considered too risky to outsource

The three most common metrics that companies use to monitor the success of their outsourcing relationships (meaning then that they are probably appropriate for outsourcing) are hard-dollar cost savings measurements, service-level-improvement metrics and employee-satisfaction surveys, used by 77 percent, 59 percent and 56 percent of respondents, respectively. In other words, the criteria are cost benefits, service improvement and customer based. If outsourcing human resource activities means saving money, service improvement and customer satisfaction, it could (and probably will) be outsourced (http://www.accenture.com/xd/xd.asp?it=enweb&xd=_dyn%5Cdynamicpressrelease_712.xml).

"Many companies today view HR outsourcing as one of the most viable options to save money and improve services while also making a strategic contribution to the business," said David Clinton, president of Accenture HR Services, an Accenture business ...

Solution Summary

Relating to HR outsourcing, this solution responds to the questions in 676 words with examples and reference for further research.

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