ABSTRACT

Outsourcing can be defined as the transfer of an internal business function, or group of related activities and assets, to an external supplier or service provider who is prepared to offer a defined service for a specific period of time and at an agreed price. The provision of pension and payroll services, relocation and employee incentive programmes and the delivery of training and development activities are just a handful of examples of activities that have an established history of successful outsourcing. By outsourcing these non-core business activities HR functions can focus the managerial effort on delivering the strategic and high-impact policy matters, such as winning the war for talent, which are of true value to achieving business goals. The role of the HR BP in outsourcing is in essence very similar to that in working with the Shared Service Centre, though fundamentally this role requires a more sophisticated approach to relationship and commercial management.