HR Oursoursment



It is evident from the research that Business Transformation Outsourcing (BTO) is an emerging segment, which focuses on improving the effectiveness of an entire corporate function like the HR, according to Sako and Tierney. The rationale is to outsource administrative tasks leaving the personnel to focus on strategy formulation using their competencies and to experience greater flexibility in allocating resources, and greater cost efficiencies but Khatri and Budhwar cite many scholars who argue that human resource can be a source of sustainable competitive advantage for an organization. This argument suggests that all functions related to human resources should be dealt in-house. The line managers have assumed key positions thereby demonstrating a shift in the roles and responsibilities. This has been caused due to downsizing and devolution of responsibilities. The line managers are hence in a position to influence both strategic and operational organizational priorities. Added to this are introduction of sophisticated software and the development of smart computer systems, which have further reduced the workload on the HR freeing the key personnel to concentrate on the change agent and strategic partner roles. The line managers are not competent in HR work and need to regularly reflect and be critical about their work. They attempt to increase the speed of decision making by wanting to by-pass procedures, which demonstrates that HR should not be outsourced but the HR functions should be expanded.