Outsourcing:assessing the risks and benefits for organisations, sectors and nations

Purpose - This research aims to assess the risks and benefits of outsourcing for organisations, sectors and nations. The literature on outsourcing contains little evidence of research on holistic issues of its impact at systems levels beyond the firm, notably sectors and nations. Design/methodology/approach - A Delphi study with senior strategists from private and public sectors captured perspectives and specific observations on benefits and risks of outsourcing. Emergent issues on outsourcing policy, strategy and decision-making processes were synthesised into a framework for analysing factors associated with outsourcing. Findings - The findings suggest that a more holistic view of outsourcing is needed, linking local, organisational issues with sector and national level actions and outcomes. In this way, aggregate risks and benefits can be assessed at different systems levels. Research limitations/implications - Future research might address the motivations for outsourcing; currently there is little research evidence to assess whether outsourcing is a mechanism for failing to solve internal problems, and moving responsibility and risk out of the firm. Additionally most outsourcing research to date has concentrated on an activity either being "in" or "out"; there is little research exploring the circumstances in which mixed models might be appropriate. Practical implications - The framework provides an aid to research and an aide memoire for managers considering outsourcing. Originality/value - This paper contributes to knowledge on understanding of outsourcing at different systems levels, particularly highlighting the implications of outsourcing for sectors and nations. Previously most research has focused at the level of the firm or dyadic relationship. © Emerald Group Publishing Limited.

HR outsourcing:the impact on HR role, competency development and relationships

The business benefits of an outsourcing strategy are well documented, and HR is encouraged to outsource in order to add value. Yet little is known about how HR outsourcing affects the HR role, competencies and relationships with senior management. These issues are examined through 27 semi-structured interviews with senior HR professionals, comparing HR departments engaged in HR outsourcing with those maintaining full in-house HR provision. The findings indicate that HR outsourcing stymies HR role transformation. HR outsourcers experienced limited skill development and an increased focus on cost reduction at the expense of their strategic position. In contrast, non-HR outsourcers actively engaged in other parts of the business, developing competencies that garnered trust and support of senior managers. The benefits of an external HR community appear limited. The study suggests that an 'internal' HR community is better placed to enhance HR departmental roles. © 2013 John Wiley & Sons Ltd.

Outsourcing:an Irish perspective

This paper investigates three case studies with regards their outsourcing initiatives from an Irish perspective, the benefits and problems they encountered, the contracts they have constructed, and where they have outsourced and the reasons behind them. The research took place over a period of two years, and the information for the case studies was gleaned from a number of sources including: published papers about the companies, the company websites, annual financial reports, the questionnaire they filled out, and interviews with key decision making personnel in the company. Follow up interviews were conducted where it was felt they were required. Key findings were that: it is very important to have the outsourcing initiative driven from the top down, and it is imperative to construct a contract that promotes a relationship based on mutual trust and respect, the use of Ireland for outsourcing, and the benefits and problem companies have experienced.

Outsourcing: a Theoretical Viewpoint

Outsourcing or offshoring as it is now known has been around for many decades. In the beginning, it was only very peripheral activities that were outsourced, i.e. blue-collar (lower skilled) work but this is now all changing with the outsourcing of white-collar jobs. The digital revolution, the falling costs of transport and telecom costs and the opening up of the global economy helped the outsourcing market. For companies going down or contemplating the road of outsourcing there are both potential benefits and challenges, for example, the type of outsourcing they want to get involved in, and the country they want to outsource to. Outsourcing can potentially happen anywhere in the world where the costs are lower and the quality higher. The main places that have been used for outsourcing have been India, China, Ireland, South-East Asia, Russia, Mexico and the Czech Republic. The research currently underway is initially focusing on a literature review of current outsourcing applications in the market place. From this literature review, a questionnaire is being developed to assess the impact Outsourcing has on businesses. This research focuses on the Irish Market place.