outsourcing

SEE outsourcing

human resource functions

• Outsourcing allows businesses to focus on their key functions as they grow

• external consultants can review HR functions with no ‘agenda’

• HR functions that are commonly outsourced:
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• recruitment, induction, leadership training, Mediation, Outplacement and payroll

Using contractors

• A contractor is :: an external provider of services to a business. It may be an individual or a business.

  • often used to create cost savings, or greater access to expertise (improves competitiveness)

• See Disadvantages of outsourcing for risks

Domestic subcontracting

• allows firms to focus their resources on core business functions
  • while having external specialists providing detailed assistance on non-core business activities
  • without the requirement of in-house staff

Global subcontracting

• two main types of outsourcing:
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• Process outsourcing:

  • focuses on repetitive, easily measured and document work

• Project outsourcing:

  • found in areas such as HR, marketing, design, and IT
  • works in a longer timeframe, carries more risk

• Global outsourcing carries some risks such as
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• Difficulty in controlling quality/reliability of the services

• cultural (language) differences

• security issues (sharing confidential info)

• high labour turnover rates (workers don’t stick around long)

• Advantages & disadvantages of global outsourcing of human resources

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