The future of the outsourcing

Résumé du document

In future, companies will continue to focus increasingly on their core business; even more in difficult economic situations like the present one. They will have to concentrate their efforts on areas of strength in order to gain competitive advantages. What is not in the core business of the company might be outsourced because it can be made at a lower cost by someone. When you outsource, you gain free time that can be utilized for the core business and to develop you own competitiveness. Managing everything in your company can reduce focus on the important things. The better you manage your time, the less are your concerns. Outsourcing can be used in order to reduce the number of employees in a company. The work they do can be done outside and the company is relieved of the responsibility of employing workers for it. The system thus becomes more flexible.

Extraits

[...] In HR, the functions most likely to be outsourced are staffing, payroll, training, recruiting, and benefits administration. Here a description of which part are outsourced: M. Belcourt / Human resource Management review 16 (2006) We can see that the most outsourced task is the payment management. It is easy to explain because it does not require being present in the company. People can do it without knowing the person just on the base of information that the company gives you. Mail and informatics are used tools for this task. [...]

[...] What is the ultimate result of outsourcing/not sourcing? We have chosen to take an example to illustrate one of the ultimate results: CIBC is one of Canada largest companies with 44000 employees and about 450 in the human resources department. CIBC decided to outsource parts of his human resources and chose EDS, a company specialized in HR services, as a supplier. The parts of outsourced HR are payroll processing, benefits administration, a call centre for employment enquiries, occupational health and safety services and HR technology. [...]

[...] The outsourced function may have served as a developmental site for managers and this is now lost, unless arrangements can be made with the vendor. In most cases, negotiated arrangements of pay and job security are not transferrable. The vendor is able to offer cost savings because of reduced wages and increased work intensity. Organizations that attempt to outsource face a backlash. For example, the city of Toronto endured a three-week strike by garbage workers over the issue of outsourcing. [...]

[...] Extreme levels of outsourcing hollow out a company, leaving it a shell. There may be unintended consequences of outsourcing the organization's knowledge nd skills to outsiders. The vendor may even sell the acquired know-how and company secrets to a competitor. Organizations can find that outsourcing employees' skills limits these organizations' ability to learn and exploit changes. The organization experiences a reduced capacity to generate profits or innovate. Even a non-core activity, such as IT, may be tightly linked to other functions such as HR, so outsourcing IT reduces the firm's capacity for cross-functional synergies and creativity. [...]

[...] Outsourcing is used to obtain some skills and especially regarding to legislation knowledge. Some rules have to be respect by outsourcer like to signify to postulant for jobs that their data will be keep. They have to be aware of that and outsourcers have to inform people who are presenting their CV. II) Which parts of the HR department (entire or parts) are being outsourced? It is really interesting to see that everything in the human resources function can be outsourced. [...]