According to Bucki (2010), outsourcing in the human resources has several advantages that cannot be ignored. It results to expansion of back office operation, however, this need to be closely monitored since it can cost the firm financially or redirect the business objectives. The internal human resources are responsible for the overhead costs, however, outsourcing reduces the overhead costs making the internal human resources services more efficient. Further, outsourcing ensures that the required standards of competency are maintained.
There are also challenges that are brought about by outsourcing; the major challenge is that the management or a department loses the control over a certain functions. When a firm is contracted to perform a certain human resources function, the firm loses the control over that function. Another challenge brought about by outsourcing is quality of personnel. The consulting firm may be interested in maximizing profits hence compromise the competency of the required employee resulting to decline in the performance of the firm (Bucki, 2010).
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