ABSTRACT

Outsourcing is an option for human resource (HR) staffs to consider in relation to some or most of their HR services. Determining whether the activities they currently undertake are part of their core business requires them to define criteria on which to make a judgement. These might include: physical assets; market advantage; and operational integrity. Contract strategy helps staffs to decide what sort of provider they are looking for, how they decide on their choice and broadly the nature of the contract they want to let. When it comes to selecting the contractor, clearly the price and service offered will be key criteria, but the decision is also likely to be influenced by their reputation, track record, staffs own experience and the contractor's apparent financial stability. Transition has to be managed with respect to ensuring service standards are maintained and with changes in organizational configuration.