The power of HR outsourcing

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/ authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this article is to demonstrate how a business can create a high performing workforce that provides a competitive advantage that is difficult to replicate. It seeks to provide a brief history of outsourcing to demonstrate that HR is neither too sensitive nor complex to outsource as a function. It aims to suggest a common sense approach on how to determine which pieces of the HR function could be better delivered by third-party suppliers.Design/methodology/approach -The article is the result of Accenture's work in HR business process outsourcing and its research into the business benefits of outsourcing.Findings -HR functions are increasingly being asked to align HR with business strategy, support growth goals through a scalable infrastructure, and collect and provide data to support fact-based decision making, all while reducing the cost base. Outsourcing can play a strategic role in helping HR departments deliver these goals.Practical implications -The article introduces a framework to assist HR departments in understanding the value that should be created for both the business and the employee at each stage of the employee lifecycle.Originality/value -The article is based on original work conducted by Accenture with clients in many different sectors.

Outsourcing decision: do strategy and structure really matter?

“…It encompasses strategy and structure which helps in identifying a firm as prospectors, defenders, and analyzers (see Miles and Snow, 1978) and core and non-core HR activities (Miles and Snow, 1984). The last few decades have been a witness to the emergence of HR outsourcing as an increasingly important practice followed by organizations (Cooke et al , 2005; Brown, 2010). Besides, it is equally essential for a firm to distinguish between the activities that can be outsourced and those which should be performed internally (McCracken et al , 2017; Lepak et al , 2005).…”

“…Moreover, outsourcing can be done domestically as well as internationally, where international outsourcing is often termed as offshore outsourcing (Chen, 2009; Gregorio et al , 2009; Bertrand, 2011; Kouvelis and Li, 2013). Hence, apart from outsourcing other activities, the firms are also inclined toward outsourcing of human resource (HR) activities (Glaister, 2014; Cooke et al , 2005; Brown, 2010). As per the research conducted by Global Industry Analyst in 2011, the HR outsourcing market is growing continuously and will reach $162 billion by 2015 (Romanos, 2011).…”

The pursuit of HR outsourcing in an emerging economy: The effects of HRM strategy on HR labour costs

“…To achieve this objective, HR managers turn to outsourcing. HRM activities represent an increasingly costly component of the operations of all businesses (Brown, 2011;Susomrith & Brown;. HRM activities represent an increasingly costly component of the operations of all businesses (Brown, 2011;Susomrith & Brown;.…”

“…The growth in HR outsourcing has encouraged research into the best strategic conditions for externalization of HRM activities (Kinange & Murugaiah, 2011;Sheehan & Cooper, 2011). HRM activities represent an increasingly costly component of the operations of all businesses (Brown, 2011;Susomrith & Brown;. By outsourcing their HR activities, organizations seek to reduce their costs while simultaneously enabling the HR function to play a more active strategic role in the life of the business (Cooke Shen, & McBride, 2005;Sheehan & Cooper, 2011).…”