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The outsourcing of certain human-resource management activities such as benefits and
payroll has existed for decades, but in the last five years full-service business-process
outsourcing has come of age. Faced with massive overcapacity and the implosion of
several business sectors at once, managers have searched for new ways to reign in expenses,
become more productive and restore focus to their business’ core competency.
This development has not been without controversy. Familiar arguments include ideas that
human resource outsourcing (HRO) will change everything about the human-resource
profession, careers will be uprooted and technology will rule absolutely. It is no wonder that
when a company is considering outsourcing, criticism of the practice can be rife.
However, the reality of HRO is different. As HRO has grown, customers and HR professionals
have learned that it is neither a substitute for effective people matters nor a tool for
eliminating jobs. Rather, HRO arrangements have proved to be strategic partnerships that
help to put people matters at the top of corporate strategic decision-making.Previously published in: Journal of Small Business & Enterprise Development, Volume: 13, Number 3, 2005
Emerald Group Publishing Limited; June 2005
56 pages; ISBN 9781845443016
Read online, or download in secure PDF format
56 pages; ISBN 9781845443016
Read online, or download in secure PDF format
