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Article
Publication date: 10 April 2009

Jean Woodall, William Scott‐Jackson, Timothy Newham and Melanie Gurney

The purpose of this paper is to explore and describe how the decision to outsource human resources was made by 12 large and five small organisations.

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Abstract

Purpose

The purpose of this paper is to explore and describe how the decision to outsource human resources was made by 12 large and five small organisations.

Design/methodology/approach

Desk research and key informant interviews with senior HR staff who lead the decision to outsource human resources in a purposive sample of organisations identified through an initial search of the professional literature and nomination by an expert panel.

Findings

The research identifies a number of drivers that lead organisations to consider outsourcing their HR. In large organisations cost considerations are dominant, but other factors arise out of the organisational history and context, and very often, senior managers from outside the HR function are very influential. For most organisations, paradoxically, the decision to outsource appears not to be made on the basis of a thorough analysis of costs, with consequences for the quality of HR service offered to line managers, and also for the career paths and skill sets required from HR staff.

Research limitations/implications

This study focuses upon the perceptions and experiences of senior HR managers, but excludes the perceptions and experiences of all staff employed in the HR function. Also, while the use of a qualitative research design makes it possible to uncover the individual perceptions and motivations of the key informants in the sample, there are obvious limitations in respect of statistical generalisation.

Practical implications

The findings relate mainly to the future shape of the HR function in organisations where HR activity is outsourced, with consequent implications for the skill sets and career paths for HR professionals.

Originality/value

The views of HR directors and senior managers have provided a valuable insight into the strategic decision to outsource HR activity and will be of interest to those involved in the same field.

Details

Personnel Review, vol. 38 no. 3
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 14 September 2012

Rita Fontinha, Maria José Chambel and Nele De Cuyper

Outsourced information technology (IT) workers establish two different employment relationships: one with the outsourcing company that hires them and another with the client…

2302

Abstract

Purpose

Outsourced information technology (IT) workers establish two different employment relationships: one with the outsourcing company that hires them and another with the client organization where they work daily. The attitudes that an employee has towards both organisations may be influenced by the interpretations or attributions that employees make about the reasons behind the human resource (HR) management practices implemented by the outsourcing company. This paper aims to propose that commitment‐focused HR attributions are positively and control‐focused HR attributions are negatively related to the affective commitment to the client organization, through the affective commitment to the outsourcing company.

Design/methodology/approach

These hypotheses were tested with a sample of 158 highly skilled outsourced employees from the IT sector. Data were analyzed with structural equation modeling (SEM).

Findings

The paper's hypotheses were supported. It can conclude that, if an employee interprets the HR practices as part of a commitment‐focused strategy of the outsourcing company, it has clear attitudinal benefits. The study found that the relationship between HR attributions and the commitment to the client organization is mediated by the commitment to the outsourcing company.

Practical implications

These findings hint at the critical role of outsourcing companies in managing the careers of these highly marketable employees.

Originality/value

This paper is the first to apply the concept of HR attributions to contingent employment literature in general and to outsourced IT workers in particular.

Article
Publication date: 30 October 2009

Hasliza Abdul‐Halim, Norbani Che‐Ha and Alan Geare

This paper seeks to examine whether the decision to outsource human resource (HR) activities and the performance of the HR department are influenced by the particular business…

3775

Abstract

Purpose

This paper seeks to examine whether the decision to outsource human resource (HR) activities and the performance of the HR department are influenced by the particular business strategy espoused by the organisation. Four distinct strategies are considered: quality‐based, proactive, breadth, and reactive.

Design/methodology/approach

The data for the study were obtained from survey responses from 232 organisations, of which 113 were engaged in HR outsourcing.

Findings

The findings suggest that there is a significant relationship between organisations with proactive strategies and the decision to outsource both traditional and transactional HR functions. Breadth strategies demonstrate a negative significant relationship with outsourcing of traditional functions. Outsourcing of both functions has a significant relationship with HR performance – traditional with a positive impact and transactional with a negative impact.

Research limitations/implications

The paper focuses on the perceptions, knowledge and experience of senior HR managers. Therefore there are understandable limitations in respect of generalisation. In addition, the impact of HR outsourcing on the performance of the HR department focuses only on the reduction of the number of HR employees from the department.

Practical implications

The results indicate that HR outsourcing has the potential to empower HR managers, allowing them to focus on strategic activities that add more value to their organisation. Also, the results show that HR reduces actual HR labour costs.

Originality/value

The study applies to a very under‐researched area.

Details

Journal of Human Resource Costing & Accounting, vol. 13 no. 4
Type: Research Article
ISSN: 1401-338X

Keywords

Article
Publication date: 1 April 2004

Mark Power, Carlo Bonifazi and Kevin C. Desouza

As businesses struggle to lower cost and grow revenues, outsourcing initiatives are underway in many small, medium, and large global companies. Outsourcing strategies are…

11480

Abstract

As businesses struggle to lower cost and grow revenues, outsourcing initiatives are underway in many small, medium, and large global companies. Outsourcing strategies are considered by many as a “silver bullet” to resolve organizational problems. They have been touted as the “holy grail” to reduce costs, focus on core business processes, improve product and service offerings, and speed up time to market. These benefits are only achieved by organizations that master the art of devising, deploying, and maintaining outsourcing relationships, for many these benefits remain elusive. The following article identifies the ten traps of outsourcing.

Details

Journal of Business Strategy, vol. 25 no. 2
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 8 February 2008

Bhimrao Ghodeswar and Janardan Vaidyanathan

This paper sets out to review the different types of outsourcing, its drivers and process, and to identify world‐class capabilities that host organisations can leverage.

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Abstract

Purpose

This paper sets out to review the different types of outsourcing, its drivers and process, and to identify world‐class capabilities that host organisations can leverage.

Design/methodology/approach

This paper is primarily based on a review of literature.

Findings

Outsourcing helps the organisation to achieve higher levels of value creation for the final customer. Drivers of outsourcing emanate from organisational initiatives, improvement focus, financial and cost objectives, or growth objectives. A wide range of core and non‐core critical business processes are increasingly being outsourced covering a large spectrum of sectors and operations, enabling host organisations to gain access to world‐class capabilities.

Originality/value

This paper identifies critical drivers of outsourcing and the process by reviewing available literature in this area. In doing this an attempt is made to find answers to some fundamental questions. What are the main types and drivers of outsourcing? What are the different phases in the process of outsourcing? This paper discusses in detail the significant drivers and process of outsourcing; and the world‐class capabilities accessible by the host organisation. Case studies are used to illustrate these aspects further.

Details

Business Process Management Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 11 October 2019

Mohsen Shafie Nikabadi and Delshad Hoseini

The production of a good or service requires that the supplier performs a wide range of activities. Many companies are trying to fit outsourcing with the dimensions of their…

Abstract

Purpose

The production of a good or service requires that the supplier performs a wide range of activities. Many companies are trying to fit outsourcing with the dimensions of their organization. Outsourcing is increasingly being used among Iranian companies in the field of the electric power industry. Human resources are among the factors that consider outsourcing as an obstacle for their growth because staffs declare that the development of outsourcing is a serious threat for unemployment of them and ultimately expulsion from work. Thus, this study surveys the dynamic effects of human resources and work experience on outsourcing decisions. This paper aims to propose a model for dynamic strategic outsourcing focusing on human resource and work experience.

Design/methodology/approach

Presenting a model for strategic outsourcing can help organizations to resolve their outsourcing problems. The data needed for examining the dynamic impact of human resources and work experience on outsourcing have been compiled using library and field studies. The method used in this study is an integrated approach, so the model could consider the general effects of manpower and present a systematic view. After interviewing with experts in power industry, the causal relationships of the variables were determined, and a dynamic model based on the applications of the dynamic system was developed in VENSIM software. The research model will be completed in a three-year period (2016-2019) in the power industry of Iran.

Findings

For completing projects in an organization, cooperation between internal employees and external contractors is needed; thus, results based on both external contractors and internal staff have shown that outsourcing through working of a number of contractors will be more effective than frequent use of one contractor. On the other hand, improving the quality of projects could be done by training new employees using skilled and expert employees.

Originality/value

Existence of one-dimensional models (only with qualitative factors or only with quantitative factors) in the context of outsourcing in the past studies has prompted to study different types of factors together as a dynamic model. This paper presents a quantitative and qualitative model in the field of strategic outsourcing with emphasis on human resources and work experience. In the past studies, there was no way to formulate the qualitative factors, and they simply used the data from the organization, and the only formulation in their works was based on quantitative factors. But in this study, both factors with dynamic modeling have been formulated.

Details

Kybernetes, vol. 49 no. 9
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 21 November 2016

Hasan Gilani and Shabana Jamshed

This paper aims to focus on “Recruitment Process Outsourcing” (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of…

4433

Abstract

Purpose

This paper aims to focus on “Recruitment Process Outsourcing” (RPO) as a key element of improvement in corporate brand of organisation through using the talent and capabilities of employees. This research explores the linkages and interconnection between the concepts of RPO and its contribution towards the employer branding process. The review of the literature on RPO and employer branding identifies an emergence of conceptual framework based around outsourcing effectiveness and its impact on employer branding.

Design/methodology/approach

Exploratory research was carried out using case study analysis to give clear and deep understanding of the RPO and its impact on employer branding. This was conducted by using the semi-structured interviews with the HR and marketing managers using the qualitative method. The findings propose a conceptual framework which is representative for the organisations engaged in RPO.

Findings

The key findings include talented employees’ role in improving the brand image of any organisation; the development of customers’ perceptions through their attitude and behaviours; the reduction in the HR costs through RPO Services, the responsibility of the organisation taken by RPO which provides the chance for HR professionals and top management to focus on core activities; and the organisational care in selection of the RPO service provider as per their criteria.

Research limitations/implications

This research has been limited to assessing the impact of RPO on the employer branding of manufacturing organisations purely due to access issues. The research clearly establishes a good link between the operationalisation of RPO and its direct influences on an organisation’s employer branding through its outsourced employees. The research clearly highlights the importance of and the vital role played by the outsourced employees and how they need to be nurtured through a strong corporate culture and make them great brand ambassadors.

Practical implications

At the practical level, this study has several managerial implications, as the findings provide a good understanding of the concept of RPO and how it impacts the employer brands of the organisation. The research gives confidence to the HR managers and directors on the importance of outsourced staff members and the need to address the issues concerning the employee branding of an outsourced member of staff. The outcome of the research gives a conceptual model which represents the impact of an outsourced employee on the employer branding process of the organisation. This conceptual model highlights the many different factors that need to be addressed by a HR manager to keep consistency in employee branding of the organisation.

Social implications

The social implications of this research relate to the wellbeing and motivated staff members of an organisation, even though they do not work directly under the brand of the company they serve in. As mentioned in the research findings, the complications of the RPO process usually has drastic and serious impacts on employee attitudes and feelings when it comes to issues like change management, job satisfaction and the sense of belonging to the organisation. By addressing the different factors explored in the conceptual model of this research, an outsourced employee can feel equally motivated and belonging to the organisation they serve in, just as any other permanent member of staff who acts like an ideal brand ambassador for the employer branding of the organisation.

Originality/value

This research is original and adds value to the dynamics of RPO processes by exploring the impact of the process on employer branding of the organisation through its brand ambassadors. This research paves way for further research to be carried out within service organisations where employees play a vital role in being the brand ambassadors of their employer brands.

Article
Publication date: 4 July 2016

Pournima Sridarran and Nirodha Gayani Fernando

In this present globalised era, outsourcing has become a very popular and much sought after procurement strategy for facilities management (FM). Generally, a sustainable…

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Abstract

Purpose

In this present globalised era, outsourcing has become a very popular and much sought after procurement strategy for facilities management (FM). Generally, a sustainable procurement system should be capable enough to deliver the services free of disruptions. However, outsourcing can bring about changes in working patterns, organisational culture and management styles which can possibly disrupt the activities of an organisation. In order to avoid such disruptions, organisations need to adopt a measured approach towards this change. Accordingly, the purpose of this paper is to investigate the importance of change management to enable sustainable outsourcing of FM services.

Design/methodology/approach

Within commercial building context, the questions of “why change is not managed during outsourcing of FM services” and “how can it be managed” are investigated through case studies.

Findings

Organisations encountered various disagreements due to inadequate management of change during outsourcing. If the changes emanating from outsourcing are not managed satisfactorily, it would result in possible disruptions. However, to make changes happen successfully is one of the most challenging tasks faced by the leadership and corporate management of the organisations.

Originality/value

In order to facilitate the practitioners in the industry, this paper finally offers a framework for change management during outsourcing based on the findings.

Details

Built Environment Project and Asset Management, vol. 6 no. 3
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 12 June 2007

Chad Lin, Graham Pervan and Donald McDermid

The main purpose of this paper is threefold: to understand public‐sector outsourcing in Australia; to examine the linkage between IS/IT outsourcing and the use of evaluation…

5491

Abstract

Purpose

The main purpose of this paper is threefold: to understand public‐sector outsourcing in Australia; to examine the linkage between IS/IT outsourcing and the use of evaluation methodologies; and to identify issues that are critical in evaluating and managing IS/IT outsourcing contracts in public‐sector organizations.

Design/methodology/approach

A survey of the top 500 Australian organizations and two in‐depth case studies of two Australian public‐sector organizations were conducted.

Findings

Several key issues for IS/IT outsourcing were identified – problems in evaluating outsourcing contracts, embedded contract mentality, ability to manage contracts, and staff transition management.

Practical implications

Outsourcing organizations need to implement changes carefully and assess their in‐house capabilities. They also need to fully understand and apply the IS/IT investment evaluation and benefits realization processes. In order to reach the magnitude of improvements ascribed to IS/IT outsourcing organizations need to undertake proper risk assessment and effectively manage outsourcing relationships. These all have to be done before and during the vendor/technology selection assessment and contract negotiation process.

Originality/value

IS/IT outsourcing in the public sector is particularly under‐studied. This study identifies several key issues for organizations undertaking IS/IT outsourcing. Recommendations are provided to assist outsourcing organizations in dealing with these issues.

Details

Information Technology & People, vol. 20 no. 2
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 3 April 2007

Kai S. Koong, Lai C. Liu and Yong Jian Wang

This paper seeks to provide taxonomy and assessment methodologies for executives of global conglomerates with a selection of variables which can help them evaluate outsourcing

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Abstract

Purpose

This paper seeks to provide taxonomy and assessment methodologies for executives of global conglomerates with a selection of variables which can help them evaluate outsourcing decisions.

Design/methodology/approach

A range of established theories, which addressed outsourcing decisions, are identified. The major determinants of global outsourcing were then formulated into an integrated model. Each of the variables identified was validated using multiple theories. Finally, a weighted score index was used to demonstrate how the variables can be used to evaluate outsourcing decisions.

Findings

It provides an overview of outsourcing theories about the variety of major reasons and their associated determinants as well as attributes that are relevant to decision‐makers. It showed that the individual theories can be integrated into a global taxonomy. This taxonomy can be assessed using a weighted‐index because the inputs and computation processes contain realistic qualitative and quantitative information.

Research limitations/implications

It is an assessment methodology that requires input and judgment from a variety of experts. Persons having such expertise may be fairly costly and difficult to find.

Practical implications

A very simple, yet comprehensive, and useful taxonomy for executives making outsourcing decisions. The assessment index is a proven methodology that is used by business consultants for a variety of related applications involving decision choices.

Originality/value

This paper fulfills the need for a more comprehensive view and a systematic approach to the assessment of outsourcing decisions. The index of attributes identified and the evaluation technique proposed are a practical approach.

Details

Industrial Management & Data Systems, vol. 107 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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