An analysis of factors affecting outsourcing of human resource

The present paper focuses on function of HR outsourcing and the factors which need to be considered before a company goes for outsourcing of Human Resource. A review of available literature was done in order to understand how today’s HR firms offer a wide variety of services to companies that need to focus on their core business activities and still establish and maintain good HR policies and to explore the factors that affect the HR outsourcing decision with special emphasis on a proper cost benefit analysis of HR outsourcing. The findings of the paper implicitly point out that the decision of HR outsourcing is contingent upon factors like flexibility, availability of adequate resources, affordability, and acceptability (openness to information-sharing) et al. The paper also suggests a systematic process and certain pre-requisites to successfully execute HR outsourcing. Based on secondary research, the paper makes specific recommendations with regard to the process of HR outsourcing and its pre-requisites. An attempt has been made to highlight the fact, that HR outsourcing is a double-edged sword; and need to be viewed in totality, keeping in mind the pros and cons of the same.