Bunny

TABLE OF CONTENTS

PAGE

EXECUTIVE SUMMARY 3

1.0 INTRODUCTION 4

1.1 Purpose and Scope of Report 4

1.2 Brief Discussion

1.2.1 Outsourcing 4

1.2.2 Human Resource 4

1.3 Methodology 5

1.4 Limitation 5

1.4.1 Limited resources 5

1.4.2 Biased outcome 5

1.5 Assumptions 5

1.6 Structure breakdown 5

2.0 OUTSOURCING 7

2.1 Why outsourcing 7

2.2 HRM outsourcing 7

2.3 Outsourcing HR functions 8

3.0 THE RATIONALE FOR OUTSOURCING 11

3.1 Financial 11

3.2 Strategic focus 12

3.3 Technical 13

3.4 Improved service 14

3.5 Specialized expertise 14

3.6 Organizational politics 15

4.0 RISKS AND LIMITATION 16

4.1 Projected benefits vs. actual benefits 16

4.2 Service risk 16

4.3 Employee morale / HR Risks 17

4.4 Reduced value / Business risks 18

4.5 Loss of information 19

5.0 IMPLEMENTING THE OUTSOURCING STRATEGY 20

6.0 CASE STUDY 21

7.0 CONCLUSION 23

8.0 RECOMMENDATION 24

REFERENCES 25

Executive Summary

This report will be an intensive analysis on outsourcing human resources to discuss and give an overall result on whether this business strategy is advisable for companies. Outsourcing human resource, growing in popularity since the early 90’s, is to have a third-party service provider or vendor furnish on an ongoing basis and performed in-house.

A thorough research through academic, relevant and legal resources, such as journals, magazine articles and authorized websites, were used to provide an in-depth and accurate information, as well as evidence, for this analysis. Statistical data and diagrams are...