HR Outsourcing Case Study

HR outsourcing is not to be taken lightly, as while it can have beneficial consequences, it can also have harmful and irreversible ones as well. The outsourced areas are important, they provide the basis of the conditions of work, day-to-day management, and business climate. As such they require expertise and experience. According to Patrick Bouvard in his book 'HR outsourcing ', unloading technical tasks or high risk operations allows a company to reposition the resources of HRD on creative topics of values.

Pierre Audoin Consultants’s 2006 study, shows that a significant growth of the HR outsourcing market is expected. Indeed the payroll market is in very low renewal: less than 5% of the companies change their payroll solutions each year.

According to Bartholomew (2001), there are four kinds of hidden costs: the costs of research, engaged when the company looks for the appropriate provider, and contracting, related to the negotiation and the drafting , the initial transition costs, costs related to the outsourcing relationship management and cost of output. Besides that, there are still costs resulting from the management of the relationship with the partner (Alexander & Young, 1996b), as the supervision of the contract’s execution, negotiations with the supplier when it does not respect its commitments and to amend the contract in case of unforeseen circumstances. Finally, the costs of disposal bring together all costs incurred by the purchaser when it changes

To fully take advantage, the company needs to better understand its expectations on the subject, its obligations, along with its constraints and desires. It is therefore proper diagnosis of its needs can be acheived by asking the right questions. Many outsourcing operations prove to be a failure (Barthelemy, 2003; Bryce & Useem, 1998; Embleton & Wright, 1998). Many organisations are barely aware of the process that they initiate when they decide to outsource (van Engelen, 2005). Internal HR staff devotes only a fraction of its available time to the management of external relations and the monitoring of providers (Lepak & Snell,