Master Thesis On Outsourcing

In the article, the authors mention there are three benefits of outsourcing that also are reasons for the firms to outsource their HR functions.These benefits include enhanced value of the firms, increase speed to change and reduced costs.

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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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).

Because of the globalization and increasing environmental complexity, therefore, in my point of view, researchers should not confine to some regions.

Next issue to be discussed in this paper is about whether HR outsourcing is a tool for achieving competitive advantage.

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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