Why do organizations outsource HRM functions? How does outsourcing affect the role of human
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Why do organizations outsource HRM functions? How does outsourcing affect the role of human resource professionals? Would you be more attracted to the role of the HR professional in an organization that outsources many HR activities or in the outside firm that has the contract to provide the HR services? Why? |

Explanation
Outsourcing can be efficient because of the following reasons:
The cost is reduced as the process of hiring and training new personnel for that particular role is omitted.
Experienced HR professionals have seen more of the situation than any new hire. So, they are capable enough to handle different situations in a more efficient manner.
Hiring and training require a lot of money and time as well as the energy of the trainer. All these are saved with the help of outsourcing.
Hiring new personnel is more expensive than outsourcing professionals to perform a given task. As a full-time salary needs to be paid, but in outsourcing only the required services fees can be paid.
Other neglected areas of the organization may be given attention and may be provided with more facilities than before by saving the money and time that was being spent on various HR activities.
Evidence supporting the argument that an individual may prefer to work in a company that outsources HR activities is as follows:
As the major tasks will be outsourced, the HR professional would be able to learn and understand the other activities in detail by providing more attention to the same.
The HR professional may be able to learn the activities conducted within the organization and the outsourcing organization as well. This would add to the knowledge of the HR professional.
Evidence supporting the argument that an individual may prefer to work in a company that provides outsourcing services is as follows:
Outsourcing is a new trend in the field of human resource management and is thus, more attractive in terms of its effectiveness and efficiency. The company that outsources many HR activities attracts the attention of the freshers in HR.
On the other hand, HR service providers are producing experts in the field of HR to cope up with various organizational situations and nurture accordingly. This can be considered a good area of growth for HR professionals.
Sample Response
Various reasons to outsource human resource jobs are as follows:
The cost to hire and train a new employee to perform a particular Human Resource (HR) task is reduced.
Experienced professional and expert insights can be obtained.
Saves time and energy.
Cheaper as compared to assigning a new person in the organization to perform that particular job.
A huge amount of time, money, and energy are saved in outsourcing. The HR experts can pay attention on other activities that require more attention and were neglected before.
The arguments based on the preference of an individual to select outsourcing as an HR activity are as follows:
An individual may prefer to work in a company that outsources HR activities.
An individual may prefer to work in a company that provides outsourcing services.