Discuss the Pros and Cons of Using Outsourcing as Hrm Strategy in Hard Times Characterized by High Cost and Low Capacity Utilization.

Discuss the pros and cons of using outsourcing as HRM strategy in hard times characterized by high cost and low capacity utilization.

ADVANTAGES

1. Outsourcing aids in getting qualified and competent personnel to do the job.

When you outsource your HR function you will not devote huge cost in hiring cost personnel and lavish means of getting them to run your enterprise. Outsourcing firms assumes all these responsibilities for you without the resultant overhead cost. They take care of the resourcing needs with their pool of highly skilled staff. The resources employed providers are usually well educated in the respective occupational areas and are knowledgeable in managing the business needs of companies that want to outsource.

2. Aid to run your business with minimal risk

When you choose to outsource the HR parts of your business, especially since this activities compliments your main activity, you eliminate the need for investment in setting up a huge HR dept. as the outsourcing partner assumes that concern of the business processes and hence develops infrastructure for the same.

3. Outsourcing helps a firm to concentrate or her main areas

Having outsourced HR part of your business that is not core, you then free up your concentration and resources to develop the core of the business and other saliently important parts like building your brand, invest in R and D and hence you are able to deliver advanced value added services at a more competitive rate.

4. When you outsource HR your efficiency upsurges

Companies that do not understand the advantages of outsourcing soon see themselves involved in everything and not being good in any, outsourcing some areas like HR produces efficiency within any organisation. These outsourcing service partners have perfected their acts using technology and so the cost of delivering the processed finished good is a lot less than what it will take if you set up your own humongous HR processes using limited resources. Their effectiveness and efficiency translates to yours.

5. Cost advantages

This is arguably the most glaring advantage of outsourcing your HR functions, you get the job done faster and better for less than you would had you engaged in doing this yourself. Many times you find this organisations saving as high as 14% - 45% on outsourcing HR functions alone.

6. Your organisation deliver quicker and your services are enhanced

Outsourcing will help you achieve an enhanced service offerings with greater class of your deliverables and more often than not reduce your lead time. The average time