Some observers consider outsourcing as a key trend (perhaps even a key trend) is shaping the future of human resources. They are HR departments focused entirely on strategic business, leaving all transactions and administrative activities of suppliers. But the author warns that outsourcing any business creates potential risks as well as benefits: companies may be overly dependent on suppliers, and they may lose power in the strategically key competencies. The author summarizes the most powerful of the available studies by the decision of outsourcing and identifies six key factors that companies should consider when making important decisions outsourcing. Structure, which helps to assess the pros and cons of outsourcing, can be used specifically for the HR-functions. In particular, it may help explain the management issues of outsourcing agreements, such as the recent landmark deal between BP and Exult Inc's $ 600 million, seven-year arrangement provides a window into the many opportunities - and complexity - of HR outsourcing. "Hide
by Paul S. Adler Source: MIT Sloan Management Review 10 pages. Publication Date: 01 Oct 2003. Prod. #: SMR118-PDF-ENG
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