Outsourcing and HRM
This chapter considers what factors have led to the increased use of outsourcing across a broad range of activities and functions. It addresses what firms should consider when determining whether to outsource organizational processes and how firms should manage the outsourcing process once the decision has been made. Finally, while many of the changes being observed in the use of outsourcing are being driven by developments that affect organizations throughout our economy, outsourcing decisions are also heavily influenced by institutional context and detail. The chapter illustrates this point by closing with a discussion of outsourcing within the functional area of human resources. It discusses areas within HR where the trends have led to an increased use of outsourcing as well as areas where - because of institutional differences - very different approaches to outsourcing are being pursued. The chapter examines some of the major reasons for growth in the use of outsourcing among organizations in our economy.