Outsourcing of human resources: the challenges and motivations of companies

Angela L.

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Outsourcing of human resources: the challenges and motivations of companies

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Outsourcing of human resources, challenges, motivations of companies, strategic domain, organizational domain, outsourcing process, human resources function, administrative obligations

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Abstract

Companies today face many changes, regardless of their field of activity. The main objective of each of them is, of course, to achieve maximum profits in order to be able to continue their activity in the long term. Competition is a constant threat to societies, as it has come from all walks of life since the arrival of the Internet and its democratization. For this reason, companies want to be more efficient, more productive and also have a higher than average customer satisfaction rate, or in any case, higher than those of their competitors.

Human resources are essential in the business world. In recent years, their role has changed a lot, it is no longer just a question of recruiting and signing employment contracts, but rather of fully participating in the life of the company in all its forms. Advances in new technologies have enabled this diversification but have also changed the entire organization of HR work. The vision of the company, as a whole, has also undergone profound changes and, in this regard, outsourcing has emerged as a coherent solution to time management in a large number of companies. Outsourcing consists of delegating certain tasks to service providers outside the group in order to concentrate on essential tasks and be able to gain in productivity. However, this has advantages and disadvantages and is not necessarily accepted or viewed well by all employees, some being resistant to progress in this form.

Outsourcing: a growing interest
1. Definition of outsourcing
2. The development of the outsourcing process
Outsourcing of the HR function
1. State of play, context
2. The role of HR in perpetual motion: strategic and administrative obligations
3. Influence of the size and activity of the company in the outsourcing process
4. The use of the advice of a new form of outsourcing
The different outsourced HR functions
1. Technical and administrative functions
2. Functions focused on HR
3. The three most outsourced functions: payroll, training and recruiting
Key steps in the outsourcing process
1. The challenges for the organization of the company
2. The disadvantages and obstacles of outsourcing
3. The stages of an approach
4. The impacts of outsourcing

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[...] It is indeed a question of whether outsourcing can be a solution to the internal organization of the company. A series of calculations must therefore be made. It is customary to carry out a performance benchmark to know the competition and the performance of the latter. Benchmarking remains one of the best ways to know whether such a decision is necessary or not because the analysis allows to better understand the competitors, the suppliers, as well as the expectations and the needs of the customers in the sector in question. [...]

[...] This, therefore, improves the flexibility and efficiency of a group. In a consumer society where competition is increasing every day, is it still possible to say that outsourcing, if it makes it possible to gain profitability, is just a luxury? The size of the company is important because the stakes are not the same. In larger groups, outsourcing is a kind of security, as some tasks have more added value than others, and the tasks are often very important for a single department. [...]

[...] The use of the advice of a new form of outsourcing Consulting has become a trend in the outsourcing industry. Indeed, some service providers come to companies to give a series of tips to optimise the organization of the business. Consulting helps anticipate business needs since professionals must have access to all relevant information about the group. Also, it's about knowing which tasks are easiest to outsource. The use of advice allows the company to know the delicate tasks which are not necessarily linked to the strategy, but rather with the whole administrative side, which takes a lot of time and which is less focused on productivity. [...]

[...] Now it is a question of which human resource functions can or cannot be outsourced and why? From this perspective, the proposed problem could be the following: how can the outsourcing of human resources be beneficial to the company? In order to answer this question, we will first discuss the growing interest in this concept of outsourcing. We will define the concept, and we will also talk about the development of the process. A second part will be devoted to the outsourcing of the HR function, with an overview of the context. [...]

[...] Outsourcing: a growing interest A. Definition of outsourcing Outsourcing consists of entrusting a set of tasks to a service provider, external to the company, for a fairly long period of time. Companies can choose to outsource one or more tasks knowing that in the strategic and organizational domain, some tasks are more outsourced than others, as we will see elsewhere in the third part of this document. Outsourcing is a phenomenon that affects all businesses, regardless of their size. Indeed, the competition is such that each of them must find effective ways to save time and money and must therefore improve their organization. [...]

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