Outsourcing Talent Management

It is clear that organizations are moving toward either automating or outsourcing aspects of the HR function.  However, the question all HR departments and the organization that employ them must grapple with is, “should my company outsource aspects of its HR function?”    I believe this question can only be answered once there is a clear understanding of the organizations strategic direction along with a clear understanding of the role HR will play.  Although cost savings is among the reasons organizations are moving in this direction, other reasons leaders gave when surveyed is that it provides a “better focus on core competency” and “improved business processes” (Oshima, Kao, & Tower, 2010, pp. 7).   These reasons are two perfect examples of why an organization might utilize outsourcing as a viable solution.

Although recommendations have been made for outsourcing functions to include “administrative, customer service, and technology infrastructure work”, this still leaves “strategy, design, and consulting to the business” as the primary areas of responsibility for the HR department (Oshima, Kao, & Tower, 2010, pp.7).  If an organizations followed this recommentation, moving in this direction certainly allows the HR department to become key players in the overall operation of the business.  This structure elevates the profession from that of an administrative role to a strategic partnership.  Yet, on the flip side, the greatest danger in moving to this type of HR structure, in my opinion, has everything to do with loosing contact with employees as well as maintaining a pulse check on the culture.  Beyond this point, it is important to establish clear expectations for third party partners when outsourcing.  Standards and specific criteria must be discussed to ensure deliverables are met.

Outsourcing or automating HR functions is only one solution to addressing challenges faced in HR departments today.  It is true that the solution has become popular and has proved to be effective for some who have utilized it in today’s economy.  The recommendation I would make is to view it as a possible, viable option when restructuring the HR department.  However, I would only select outsourcing once the pros and cons of the solution have been evaluated and are fully understood.

Oshima, M., Kao, T., & Tower, J. (2005).  Achieving post-outsourcing success. Human Resource Planning, 28 (2), 7-11.  Retrieved from Business Source Complete database.