The power of HR outsourcing

Abstract

Purpose

The purpose of this article is to demonstrate how a business can create a high performing workforce that provides a competitive advantage that is difficult to replicate. It seeks to provide a brief history of outsourcing to demonstrate that HR is neither too sensitive nor complex to outsource as a function. It aims to suggest a common sense approach on how to determine which pieces of the HR function could be better delivered by third‐party suppliers.

Design/methodology/approach

The article is the result of Accenture's work in HR business process outsourcing and its research into the business benefits of outsourcing.

Findings

HR functions are increasingly being asked to align HR with business strategy, support growth goals through a scalable infrastructure, and collect and provide data to support fact‐based decision making, all while reducing the cost base. Outsourcing can play a strategic role in helping HR departments deliver these goals.

Practical implications

The article introduces a framework to assist HR departments in understanding the value that should be created for both the business and the employee at each stage of the employee lifecycle.

Originality/value

The article is based on original work conducted by Accenture with clients in many different sectors.

Citation

Brown, P. (2010), "The power of HR outsourcing", Strategic HR Review, Vol. 9 No. 6, pp. 27-32. https://doi.org/10.1108/14754391011078090