Effects of hr outsourcing process on the companies

    Effects of hr outsourcing process on the companies


    HR outsourcing is considered to be a key word in the global markets that initiated many local companies to enter and operate into the global markets. Generally, organizations should invest high for entering and operating in different locations of the global markets. But the outsourcing process allows them to operate in different geographic locations of the global markets within feasible operational costs. In order to reduce the operational and market costs, the companies are using global outsourcing process as the key asset. The HR outsourcing process has negative impact on the organizations that in turn leads to different cultural issues among the main company and Outsourcer Company. The language problems, community problems, ethical problems and social problem are being reported by the employees working in the outsourced companies. Especially the organizational conflicts between the human resources of the outsourcer and outsourcing companies are referred to as the key HR outsourcing issues.

    IBM is one of the famous IT companies offering software and hardware services to the customers. IBM is a US based multi-national company operating in more than 120 countries across the world. IBM has many core competitors in the global markets like Dell, Apple, Samsung and Lenovo etc. IBM has highest employee chain when compared with other organizations in the global market. Even though the company has good presence in different areas of global market, still the company is using outsourcing as the key management tool for reaching their target customers from different geographic locations of the globe. Though IBM is a leader company in the market, it faced some challenges in managing their outsourcing process to different countries.

    In this study, the impact shown by HR outsourcing process on the organizations will be explained. The study discusses the advantages and disadvantages of HR outsourcing process and its impact shown upon the organizations. The key issues that are associated with the HR outsourcing process will be discussed in detail. In this study, a research survey will be conducted on IBM, Hyderabad, India and the impact shown by HR outsourcing process on IBM will be illustrated. Finally, this study concludes and recommends some effective HR outsourcing strategies and practices to gain success in the market.

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