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Human Resource Outsourcing: The Ultimate Business Solution?

Aug 17, 2007
For years now, many companies in and out of the United States have been practicing human resource outsourcing.

Lower labor and operational costs, as well as the efficiency to which the tasks are finished are two of the primary reasons why this has become a popular business decision.

The question is, is outsourcing really the ultimate business solution?

'Defining Outsourcing'

Basically, outsourcing happens when a company entrusts specific tasks that should have been part of its internal operations to a supplier or a subcontractor which expertise lie in that field.

For example, a company will concentrate on manufacturing a particular product would not want to deal with the customer service side of the business. They will outsource the customer service needs of the company to an outside subcontractor which specializes in offering good customer service to its clients.

The company might require the subcontractor to answer calls or reply to customer e-mail messages and other related tasks. This is when the sharing of trust and responsibilities happen, that is why trust should be built between the client and the third-party or subcontractor.

'Human Resource Outsourcing'

Before concluding whether outsourcing is really good or bad for the business, take a look at the advantages of human resource outsourcing:

- Reduced Costs

There is such a thing as offshore outsourcing. With this, a company in the United States may outsource its customer service or manufacturing operation to a third part contractor outside of the country where labor costs are cheaper.

This is the main principle applied that is why a lot of companies do outsource part or all of their labor needs to a third party service provider.

- More Efficient Service

Because of the specialization of these third-party service providers, the quality of service required by a company can be consistently met.

Meanwhile, here is a list of the specific tasks which are outsourced:

1. Customer Service Functions

This is the most common type of service outsourced to a foreign country. With the emergence of the call center industry in offshore locations, labor and operational costs are easily reduced.

The services offered by third-party vendors include answering customer service inquiry calls, technical support, replying to e-mail messages, online support, telemarketing, sales and data gathering.

2. Research and Data-gathering Services

Data gathering, data analysis and research services can also be outsourced. On a smaller scale, a company who is building a web site might need content writers and web site developers. They can get outside help to get a lower cost for the writing and building of the web site.

On a larger scale, companies dealing with a huge amount of data that needs updating everyday will outsource the services for the data analysis.

Just like any other aspects in running a business, outsourcing has its low and high points. In deciding whether your company should outsource specific tasks to an outside service provider, make sure that you have weighed all of your options.

Consider the costs and implications in the quality of service that you will get. Once you have made an analysis as to whether the advantages far outweigh the disadvantages, then outsourcing might just prove to be the solution in pushing your business to the next level.
About the Author
Dave Poon is an accomplished writer who specializes in
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