Just as it has always been an issue evident enough to be clearly noted, the human resource has been and will still remain to be the most vital arm of every organization. The importance with which this fraternity prevails in any business organization always goes a long way in influencing a number of outcomes. For instance, a motivated fraternity of workers whose operations are maintained under the right ethical environments will probably increase production in the organization. Due to its vital position, every strategy introduced by any organization should majorly be targeted at ensuring the stability of the human resource fraternity.
In line with the introduction above, this paper shall involve a discussion of a key aspect in business operation (Blyth 2006). This discussion shall be carried out with a special attachment to the aspect of human resource. Perhaps before getting deep to analyze a number of key factors, it is prudent to give a plausible definition of the term whose appearance will make the core of this discussion.
The term outsourcing has had its use in a number of avenues. This may be because a single tacit definition of the term has never been obtained (Booth 2005). However, outsourcing has oftenly been viewed as a process which involves the contracting out of a business function. The popular strategy here usually includes the contracting out of a business function which was formerly performed in-house to an external provider. In a nut shell, outsourcing can simply be referred to as contracting to a third party. The connection in this case shall be that between outsourcing and the human resource fraternity hence the discussion of certain pertinent issues in line with outsourcing human resource (Blyth 2006).
To begin with, the concept of outsourcing human resource is a key venture which deserves to be approached in a strategic manner. The strategic issues here may involve identifying the third parties with whom the process will be carried out. These may include companies and business organization which will effectively assist the contracting company in achieving a number if not all its goals and objectives. After identifying the viable party or parties with whom the contracting out can be carried out, the two organization then enter into a contractual agreement. This agreement in most cases involves the exchange of services as well as payments.
The process of outsourcing can take many forms. For instance in the United States of America, certain business companies do manage to outsource human resource even outside the country/nation (Burman 2006). This is called offshoring or simply offshore outsourcing. It takes place mostly in construction projects involving a variety of experts and specialists in a given field of operation. Outsourcing human resource has a number of advantages and this explains why most companies as well as business organizations have since embraced the approach.
Outsourcing human resource goes a long way in cutting costs and hence ensuring cost savings for a company. This happens when the strategy leads to the general lowering of cost of offering the services to the business. This is because this responsibility is taken over by a different or rather the third party. The strategy here involves reducing the scope, re- negotiation, re-pricing, defining quality levels as well as re-structuring costs. In a nut shell, outsourcing especially when done at offshore levels allows the business organization to access lower cost economies. This is achieved through an offshoring process called labor arbitrage.
The factors outlined above are therefore some of the reasons why outsourcing human resource can be of importance to the practicing organization. Its vital portion in the organization in most cases becomes felt when it comes to such aspects as cost reduction. There are other benefits related to this, for instance, it allows an organization to focus on core business resources. For instance, if it has to be the human resource then the special focus given to it ensures efficiency and effectiveness. In addition to that, apart from the construction of prices and reduction in cost, the approach generally helps to improve the quality of production and operations. At the same time, it gives the organization an access to new ideas, knowledge new innovation as well as more operational expertise.
The effectiveness of outsourcing human resource greatly depends on the extent to which it influences the general output within the practicing organization. This in other words can be referred to as the performance change due to the incorporation of outsourcing in the human resource fraternity. Immediately after its implementation, it is possible to monitor the change that gets to occur with respect to the performance of the company in the related areas. Such areas may include the marketing, customer care, communication as well as transport departments.
In addition, as a result of outsourcing human resource, there is the creation of more time for the staff of the contracting company. This time can therefore be used to improve the skills and knowledge of human resource which also leads to the improvement in their performance.
In the above case, we have managed to outline some of the considerations that ought to be made when it comes to the implementation of outsourcing human resource. In continuation of the same trend, it is equally important to handle other two vital considerations mainly the ethical and the social considerations.
In most cases, this venture is usually intended at bringing a solution to a number of problems that may arise during an in-house operation. In line with the same, outsourcing should help to address some of the ethical as well as moral issues that may arise in the business environment. As a result, the contracting company needs to ensure that the process of outsourcing human resource is carried out in line with all the ethical and moral principles in business. This involves a consideration of the conduct of individuals as well as that of the entire organizations in the business environment.
An organization may choose to replace its workforce with an outsourced human resource perhaps because the former could have failed in meeting the company’s requirements. At the same time, they could have failed to meet some of the ethical requirements in business. In line with that, the contractee should equally be in a position to meet all the required ethical standards especially in the related field of business. The incoming human resource ought to comprise morally upright individuals who are well behaved and fully motivated towards the process of delivery and the eventual achievement of goals and objectives.
Apart from the ethical considerations, there equally ought to be the consideration of certain social factors. For any organization, a human resource fraternity comprising individuals who are socially upright and active enhances a lot of unity in the business environment. Consideration of some of the social issues by the organization comes with a heavier importance especially in such cases as a multicultural environment (Engardio 2006). The human resource can be made up of individuals who are divided along a number of lines like gender, class, culture as well as age. In such a case, the process of outsourcing human resource should be implemented so well that a balance and cohesion is maintained. It also ensures that the right and necessary adjustments are put in place.
Just like it had been mentioned in the above stipulations, an organization ought to ensure that the right considerations are put in place before venturing into outsourcing human resource. It therefore ought to conduct a thorough research on some of the rich regions from which the best and most viable opportunities can be realized. The performance level, financial trends and the general productivity of the third party should be clearly stated. This ensures that the contracting company minimizes any instances of loss hence achieving risk management (Eckholm 2006). The potential areas for outsourcing therefore ought to have a number of attractive characteristics. For instance, there ought to be economic stability, good infrastructure, political stability and a generally conducive environment for business in such areas.
Due to the need for interaction with a variety of new ideas and approaches to business, offshore outsourcing has become a common venture in the United States. According to the statements of a business expert, the nation has given only 20% to inshore outsourcing while a bigger portion of the human resource on a general analysis emerge from offshore outsourcing. This is therefore a clear indication that offshore outsourcing has always been preferred over the inshore option.
In conclusion of the above discussion, it is important to put in place some of the approaches that can be applied in order to ensure a balance in the above mentioned issues. The balance in the four main factors namely performance, strategy, ethical and social issues and considerations in outsourcing should be managed going by their level of importance. Going by the list above, it is more than evident that almost each and every issue has an important role in improving production and output in an organization.
However, there are those that need a prior attention. In line with that, an organization ought to outline some of the most viable strategies before implementing outsourcing. Strategizing therefore ought to come first before the evaluation of performance. The aspects of social and ethical considerations and issues involve a rather long term reward. This implies that they may not necessarily be given the most initial attention. However, they deserve a longer time and incorporation of several other factors. In other words, they simply need more attention compared to the other issues. This is because issues attached to business ethics and other social factors have a unique way of influencing a variety of outcomes in the business.
Outsourcing human resource is therefore one of those very important approaches which can be used by an organization to ensure improvement. At the same time, it involves a number of issues which all deserve to be considered to ensure that the venture is not only an effective one but also a productive one.