Sample Essay Different industries have different reasons for outsourcing; however there are those factors that…
Outsourcing runs the gamut from total outsourcing where all HR functions are turned over to the vendor to manage, to selective outsourcing where only certain function are contracted out while others remain in-house. Research abounds on the subject of outsourcing (Currie & Willcocks, 1998; Lacity et al., 2006). These range from reasons why companies outsource, framework and strategies for constructing and managing the contracts, successes and failures, case studies, leadership qualities to the effects on factors such as productivity (Khosrowpour et al., 1996; Malhotra, 1995)
Human resource issues associated with outsourcing emerged in search presented by Barrett (1996), Cooper (1999), Khosrowpour et al. (1995), McLellan (1993), Palvia and Parzinger (1995) and others. These factors include issues such as skills, benefits, morale, training, productivity, career opportunities and job security. Studies by Due’ (1992), Khosrowpour et al. (1996), and other researchers contend that each of these factors has a direct effect on morale and productivity in the workplace when outsourcing is introduced. They also suggest that communication is another factor that affects productivity. Except for the Khosrowpour et al. (1996) and the Kessler et al. (1999) studies, all the research was presented from the perspective of upper level management, those who would ultimately make the decision to outsource or not.
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