Special Topics on Human Resource

Management Online Lecture

power Outsourcing

What is Outsourcing?

Human resources outsourcing involves hiring companies to manage personnel

functions, including the administration of specific operations like document processing,
manufacturing, marketing, health benefits, retirement plans, and workers’ compensation
insurance. It also includes hiring, training, and legal expertise. Human resource outsourcing
(HRO) occurs when a business instructs an external supplier to take responsibility (and risk)
for HR functions and perform these tasks for the business. Payroll outsourcing is commonly
outsourced for two reasons: it’s a time-consuming
consuming administrative task for employers, and
there are many specialist companies with the technology and knowledge to run it efficiently
and compliantly (hrzone.com)

Special Topics on Human Resource

Management Online Lecture
power Outsourcing

Advantages of Outsourcing

HR outsourcing reduces the fixed cost of managing employees. HR firms can be

more efficient because the talent and infrastructure are already in place. Small businesses
save money and time by hiring HR firms and are better able to offer a wider range of
benefits:

1. Health insurance plans, including health maintenance organizations (HMOs), preferred

provider organizations (PPOs), and health savings accounts (HSAs)
2. Social security counterpart fees
3. Retirement plans and benefits, and credit unions
4. Voluntary benefits, such as sickness, travel, and long-term disability plans

Special Topics on Human Resource

Management Online Lecture
power Outsourcing

Disadvantages of Outsourcing

The most significant drawback to manpower outsourcing is poor internal

communication because the outsourcing company is not on-site and doesn't adopt and
doesn’t have a good sense of the company's culture.
culture Employees can't just drop into the HR
office for concerns. As a result, they may feel out of place.

Manpower outsourcing could greatly hinder organizational learning. Being off-site

and disconnected means they are unable to adequately facilitate organizational learning by
providing a continuing thread that supports corporate identity.

Special Topics on Human Resource

Management Online Lecture
power Outsourcing

Impact and Effects of outsourcing

The following positive effects of outsourcing jobs to the Philippines or elsewhere,

have been proven by many of these businesses::

1. Stronger businesses owing to improved focus and efficiency

2. Expertly-run businesses across all levels with lesser financial and time investment.
3. Expanding businesses due to increased customer satisfaction.

Additional 5 positive effects of outsourcing on your business:

1. Incur savings
2. Productivity Is Increased
3. Focus on core areas
4. Access to better technology
5. Flexibility in Staffing

Special Topics on Human Resource

Management Online Lecture
power Outsourcing

Challenges of Outsourcing in the Philippines

Challenges facing the outsourcing industry are the same faced by any other
medium-to-large
large business operation in the Philippines:

1. HR policy and rule of law

2. Politics and inefficient leadership
3. Education and job mismatch
4. The quality of infrastructure and internet connectivity
5. Expensive and unstable power sources

Special Topics on Human Resource

Management Online Lecture