Essay on HRM Outsourcing
Today, HR outsourcing opens larger opportunities for business development. In this respect, it is possible to refer to the experience of outsourcing in my organization, where HR outsourcing has been implemented. In fact, HR outsourcing is associated with certain risks, but, if HR outsourcing is applied properly, its benefits outweigh potential risks. In fact, HR outsourcing opens larger opportunities for business development, decreasing costs and increasing the effectiveness of operations conducted by the company.
First of all, it is important to place emphasis on the fact that HR outsourcing plays an important part in my organization. In fact, the company focuses on HR outsourcing to save costs spent by the company on the labor force. At the same time, the primary concern of the company is balancing the costs of the labor force and the quality of services provided by employees for customers. HR outsourcing contributes to the faster business development of the company because outsourcing helps the company to employ professionals abroad, whose salary is lower compared to the salary of local professionals. As a result, the company saves costs and can employ gifted employees living far abroad. In addition, the cultural diversity helps the company to generate new approaches to business using outsourced HR. People with different cultural background can suggest different approaches to their work and business development at large and the company can borrow their ideas to implement at the larger scale throughout the company. In such a way, the company can improve the effectiveness of its management and performance.
Furthermore, HR outsourcing contributes to the optimization of employees’ performance. For instance, the company does not need to provide outsourced employees with workplace. Instead, they stay abroad and use modern telecommunication systems to work for the company. In such a way, the company does not need to develop extensive facilities to provide each employee with a workplace. Instead, the company just uses HR outsourcing to employ professionals, who may live in a remote country but still may be as productive as local employees or even more productive than local employees.
Therefore, the company focuses on HR outsourcing as an effective to save costs and to employ well-qualified professionals from all over the world. They can collaborate effectively using modern telecommunication systems and information technologies. On the other hand, the company needs to enhance its information system to minimize the risk of information breaches that inevitably arise, when the company outsources HR. Nevertheless, such risks are relatively low and insignificant, especially compared to benefits of HR outsourcing.
In addition, the company considers HR outsourcing as the strategic direction in its business development. In the future, the use of information technologies and telecommunication systems will increase even more. Therefore, the company will get larger opportunities for HR outsourcing, while the qualification of the labor force employed through outsourcing is likely to increase. In such a situation, the company can benefit from HR outsourcing and gain a strategic competitive advantage over those rivals, who refuse from using HR outsourcing. Obviously, HR outsourcing gives the company a competitive advantage decreasing costs of the labor force and, therefore, increasing the competitive power of the company. The company can conduct more flexible pricing policies and offer customers services at lower price compared to companies, which have refused from HR outsourcing and employ local professionals only.
In actuality, the potential of HR outsourcing can hardly be underestimated, taking into consideration the growing trend to globalization. The process of globalization contributes to the further development of HR outsourcing. Therefore, HR outsourcing becomes strategically important for the company because it can take the lead and use the full potential of HR outsourcing outpacing its rivals, in such a way. In fact, HR outsourcing opens an opportunity for the company to employ the best professionals from all over the world.
Thus, it proves beyond a doubt that HR outsourcing opens better competitive opportunities for the company. In addition, HR outsourcing helps the company to save costs and to improve its marketing performance. HR outsourcing is strategically important for the company and opens larger opportunities for the further business development of the company.
