Study on Outsourcing Human Resource Activities: Measuring the Costs and Benefits
Ms. Mili Soni
Associate Professor, ABES Engineering College Ghaziabad
Dr Ramesh Agarwal
Director, JRE Group of Institutions, Greater Noida
Download PDFAbstract
Outsourcing involves the sourcing of goods and services previously produced internally within the
sourcing organization from external suppliers. The key point worth noting is that this definition
excludes processes never performed internally. Linder writes that outsourcing is purchasing ongoing
services from an outside company that a company currently provides, or most organizations normally
provide, for themselves. This view limits McIvors definition by adding the qualification that most
organizations normally provide some services for themselves. Lee and Hitt (1995, p. 836) provide a
much broader definition for outsourcing, as the reliance on external sources for the manufacturing of
components and other value-adding activities. This definition could include nearly any activity so long
as it is value-adding. This paper adopts the broader definition, though it excludes activities such as
advertising and independent auditing as these are nearly universally outsourced by companies, that are
not directly selling these services to other companies.
Keywords: Outsourcing; Measurement; Costs; Human Resource; Economy.
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