Competitive Edge Through HR Outsourcing

Organizations getting their real human source of information function done out side the organization is known as HR outsourcing. By using HR outsourcing an organization hands over its individuals reference issues to be settled by the 3rd party and the third solves all issues related to individuals source. Through outsourcing a business can avoid its inner cost to some extent and it'll progress services at low priced because third party consultant retains highly capable HR experts with them. If firm tries to hire those people it might be very costly for this. HR outsourcing gives access to those pros at minimum cost and organizations progress solution.

Now days, group want to move towards HR outsourcing. Many of the organizations now adopt this idea and because of outsourcing, they are simply performing better. In my research I've tried to determine whether adopting HR outsourcing provides an edge to the organization or not. I established our preliminary hypothesis that corporation gets competitive advantages if indeed they go for HR outsourcing. To be able to get results I've conducted a tiny size research and based on this research I concluded my results.


Does a business gain competitive benefits through HR outsourcing?


HR outsourcing is attaining immense importance in the current era. A lot of the organizations are actually adopting HR outsourcing. It gives organizations double benefit, first of all they can avail services of key real human resource specialists without employing them and secondly organizations can get these benefits incurring suprisingly low cost. The basic objective of doing this research is to find out the impact of HR outsourcing on organizational performance. In this particular research I've tried to discover that organizations gain competitive gain through HR outsourcing. What positive things they achieve through HR outsourcing. I've accumulated data from key HR staff employed in leading organizations. This research will assist almost every group that is working at broader level. By analyzing the findings of the research organizations can get the theory whether they should take up HR outsourcing or not. This research will also be helpful for those organizations that are thinking about HR outsourcing. I have also discovered that what benefits organizations achieve through HR outsourcing and what are other possibilities to gain other different benefits.


In the occurrence of theoretical model a business recognizes environmental and organizational characteristics that impact the performance of human being resource in the business. Particularly we treat the issue according to the scenario which contributes value for corporation by the research of environmental and organizational characteristics that affect HR performance and relationship outsourcing mediates. We suggest that distributor competition in HR is directly proportion to the HR depth performance.

Uncertain situation of the environment like major, competitive and supplier give the signs to develop the relationship between the performance of HR and amount of HR outsourcing and also between distributor competition and amount of outsourcing for advantage identify the latest version of the newspaper was shown in Houston, Texas, March, 2003 at the Southwest Academy of Management appointment and received the paper award.

It has been seen in several organizations they are focusing on human being source outsourcing. This development has been witnessed for last couple of years. In a study conducted by well reputed companies of the world concluded in its studies the views of key HR staff of different leading organizations that they outsource at least one function from the outside to be able to increase production. P& G agreed upon an contract to outsource HR service in 2004 for its operation spread all over the world. HR outsourcing is increasing rapid attention by different organizations, it is highly recommended that organization should go through all aspects while outsourcing. In various surveys it's been found that it has declined the morale of employees and customer services are also not up to expectations.

It is still problem for the organizations that prior to going to outsourcing for the functions that recently did in the business and decision entirely based on cost and advantage examination. (e. g. , Anderson&Weitz, 1986;Belous, 1989; Greer, Youngblood, & Gray, 1999; Gupta & Gupta, 1992; Kakabadse & Kakabadse, 2002; Lever, 1997), and Vining & Globerman (1999) in a research conducted by government companies that through HR outsourcing organization preserved up to 30% in its operating costs. Regardless of that difference other studies suggest that while making decision of outsourcing cost should not be only conditions few other factors also needs to be taken under consideration. In those things to consider it must analyze that organizations are availing services of highly qualified professionals and customer satisfaction has also increased. (Barthelemy, 2003; Greer, Youngblood & Gray, 1999; Gupta & Gupta, 1992), by few experts it is stated that organizations lose permanent edge (Anderson & Weitz, 1986; Greer, Youngblood & Grey, 1999, Gupta & Gupta, 1992; Lever, 1997). Studies that have been conducted very just lately, Adler (2003) directed few factors that must be considered while making decision for out sourcing, one how centered you'll be, second is spillover risk, and third is trustworthiness of that group, capability of that organization, long-term sustainability and flexibility. The factors that reviewed initially, second, third and fourth position are short term and fifth and 6th positions are long-term. Even though there is no exact method that helps us whether outsourcing is most efficient and effective. Few useful examples are available whether to make or obtain out aspect for example Leiblein, Reuer, & Dalsace, 2002) conclusions focus why organization outsource, what are the benefits associated with outsourcing.


Today's world of business is very powerful; every business is striving to preserve its position in the market. HR outsourcing can be an emerging idea and gaining an edge with the passage of time. Organizations are moving towards version of this theory. It has been observed that HR outsourcing is effective for the organizations. Organizations performance raises with the help of HR outsourcing. Those organizations which may have followed HR outsourcing in their organization are performing much better than those that have not centered on HR outsourcing. It shows development towards HR outsourcing. It is utmost effort of each organization to execute at perfect level and give better result to its stakeholders. Though HR outsourcing organizations avail services of highly capable pros who assist them to increase their efficiency and eventually this will favorably affect the gains of the organizations.


In this research, I have used review methods because this is descriptive research and nature of the problem is uncertain, in which management partially is sure about the problem. Questionnaire was used as data collection tool where organised and close end questions were asked. Total fourteen questions were made to ask different view from the respondents. In every questions different alternatives received to the respondent to select his choice. Finally when all questionnaire were got filed i quickly summarized the bring about order to finalize my research findings. Aside from questionnaire books was reviewed completely. By inspecting both major data collected through questionnaire and extra data analyzed in books review, I have concluded my research studies.

In this research, my sample size was thirty respondents and all were pros working in different organizations. They participated in this research and based on replies received from them I finally concluded relating to this research.


In this research, 30 respondents were asked to get involved. Out of which 27 questionnaires were received. 3 questionnaires were rejected due to false or imperfect data, finally 24 questionnaires were analyzed. All participants were highly experienced HR professionals that were performing their responsibilities in well reputed and leading organizations. A lot of the respondents were in 41 to 50 years age bracket but handful of them were 51 to 60 years generation. All respondents have been serving in the business for more than five years.

In the reaction to a question that HR team plays a essential role for the introduction of the organization, 83% responded highly agree, 9% agreed, in support of 8% disagrees with this affirmation. This shows the value of the HR division in the business especially in the light of these responses. Organizations that have highly experienced HR professional are better than the ones that lack them. Majority of the responded agreed with this affirmation only a tiny percent of the responded refused this statement.

HR outsourcing leads group towards success, in the response to the question 95% agreed this affirmation and 5% were neutral, they did not respond anything. From your response to the question it could be inferred that it is key success factor of the business if it adopts HR outsourcing. HR outsourcing doubles the performance of firm, response of this question was not completely positive. 56% respondents were natural and did touch upon it, 23% decided this statement, 21% of respondents disagreed with this statement. It can be inferred out of this statement that most of the HR personnel weren't sure about any of it because no quantitative data was available in front of them, so they reserved their response.

In the reactions to this question, organizations are more competitive that get excited about HR outsourcing, 75% responded strongly decided with this affirmation, 18% agreed and only 7% responded who disagreed with this declaration. In regards to another question, HR outsourcing offers competitive gain to the organizations, 88% arranged with this assertion, 7% were natural in support of 5% responded disagreed with this declaration. From the replies of the two questions it can simply be inferred how HR outsourcing contributes to the development of the organization. Organization attains competitive advantage due to HR outsourcing.

Organizations which are involved in HR outsourcing get their HR function done more skillfully, 89% of respondents decided with this statement and only 11% disagreed. HR outsourcing takes on essential role in the success of the organization, 53% of the respondents decided with this statement, 29% were neutral and performed choose either aspect only 8% disagreed with this statement. Though it is growing concept, most of the HR professionals are not able to differentiate both situations.

Most of the organizations are moving towards HR outsourcing, 83% respondents arranged it means they may have realized the value of the HR outsourcing. Really it is effective for the organizations which is the main element success factor for the organizations.

Data Validity and Reliability

For the assortment of data questionnaire was used which was designed relating to hypothesis, and mother nature of information we wished to ask. All questions were designed in such course which gave us proper course towards hypothesis. Subsequently, this questionnaire was primarily approved through pilot evaluation process in which any types of problems or errors and unnecessary things were removed that confirmed authenticity of that questionnaire. Thirdly, this questionnaire was crammed by HR professional and they know perfectly about related field, these were experts and also have extensive ideas regarding this field plus they responded to the questions predicated on their deep knowledge and vast experience. As we mentioned earlier in this research those respondents were asked to take part who had been working in the organizations for more than five years plus they had captured a leading position in their particular department. These were also employed in the world class organization, so scope of the people was high their involvement in this research gave me a clear picture to pull a better conclusion.

Ethical Issues

Apart from many issues additionally it is required for the researcher to manage ethical issues related with that one research. As questionnaire which were received from the respondents having confidential data that was unethical to reveal because they provided some personal information and it seemed awkward to deliberately convey others looked after seemed needless that it should be told to any one. All the facts and information provided by the respondents especially most secrete things were retained as secrete only required thing which were mandatory to analyze has been discussed in this research. One more thing that what ever the consequence of this research, organizations designed to use the data for his or her betterment purpose must take care of a very important factor that they might not harm their workers.


In the view of above research it's been advised to the organizations that HR outsourcing is very important aspect that must be focused. By utilizing HR outsourcing the majority of the organizations availing the advantages of it among others are trying to implement. Several organization have never taken any effort to go in this course. Though the business world is very strong and it is changing rapidly, it has been hard for the almost all of the organizations to use in this dynamic world. On daily new products have been released on the market and new ideas have been brought in the market. Competition is increasing daily; every organization is wanting to take over other. Businesses are facing very rough competition and it is very hard to reply these daily fluctuations. For the sake of survival, organizations must critically evaluate the problem and intend to responds these changes consequently. If any organization does not take care which is not worry in what ever is happening available world, they may almost go out from the marketplace they do not support their competitive positions.

As we know HR is key asset of any group, all physical investments are handled by human resource. Human resource does not have only capacity to operate physical resources but additionally, it may bring new ideas by which consists of analytical skills. If any company has able and competent real human resource it has an border to other group because it can respond well. Potential is bestowed naturally; it does not mean if anybody is highly experienced he is in a position as well. Any firm that has employed talented human source of information it can react well to the changes taking place in the powerful business world.

HR outsourcing is an emerging concept; almost all of the organizations have adopted this concept in which organizations get their HR functions done externally. It the light of my research it is strongly recommended that company must concentrate to bring changes since it assists them to realize competitive edge. Those organizations which have not yet considered this truth must concentrate on it. It could not only save the expense of the organization but it also would help to render the services of highly skilled HR professional.

As everybody knows that business world is very powerful, daily we find new changes on the market. Organizations are trying to introduce impressive and changed products. With the passage of time, needs of the folks have also changed. To be able to produce products, offer service regarding to expectation of customers, corporation must hire those people who must be devoted and enthusiastic with the organization. So they must go for HR outsourcing for the betterment of their services and to respond the rapidly changes in the market.


Organization get their individual reference function done out area the organization is known as HR outsourcing. By using HR outsourcing business give its human source issues to be resolved by the third party which third solves all issues related to individual resource.

With detailed examination of the research, I have come up to now that HR outsourcing is obligatory for the organizations and gives competitive advantages to the organizations. Finding of the research confirms that though HR outsourcing organizations attain competitive benefits. In this research, respondents who participated were all professional and doing their responsibilities in the key organizations. A lot of the respondents uttered that individuals resource department performs a essential role in the development of the organizations and really this is actually the fact because they are the key assets of any organization. All those business that captured leading positions in the world market, it was because of their expert human tool.

In the regard of question whether HR outsourcing is important, lots of the respondents positively uttered that it's mandatory and performs most significant part in the introduction of any corporation. Because now a days business people know the fact that it is hard to survive in the market until timely activities are not considered. So it can only just be possible when they get their HR functions done in professional ways. There would be dual effect of this HR outsourcing, one firm would avail professional advice at low cost and secondly credited to professional capabilities they would make an effort to inspire employees.

HR outsourcing increases the work effectively of the organizations. Efficiency of the organizations increases, because of few questions it was explained that anticipated to experienced HR organizations gives greater results and perform at expected level. A lot of the organizations are actually moving to HR outsourcing, there can many reasons behind that. One reason included in this can be the tough competition on the market due compared to that organization has to respond to quickly changing market. Each day new and improved upon products or services have been created, it is becoming complex to perform the firms if proper attention is not paid, it has additionally become matter of success for the organization that's why attempts are continuously made to bring group at competition level. Organizations are trying to make changes on daily basis and respond to the external environment accordingly. It really is their full work to pave the way of success. Concentration towards HR outsourcing is also one of the elements of this interconnection.

In nut shell, I conclude that organizations attain competitive advantages due to HR outsourcing;they perform much better than other organization, and they become successful to attain competitive benefits because they act in response the environment quickly if any new change occurs out side the external environment. It does increase the production of the organizations and they become more efficient. A lot of the organizations are actually moving towards HR outsourcing because they have got realized the importance of HR outsourcing.

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