Human resource outsorcing - the current effects and the projection

Karsowidjojo, Shiraz (2009) Human resource outsorcing - the current effects and the projection. Bachelor thesis, Petra Christian University.

Abstract

Most often, the main goal of outsourcing a service is to lower the company?s cost, making more efficient and effective use of labor, less capital expenditure, technology and/or resources. Outsourcing has started with non core business activities, but nowadays globalization has put much pressure on companies, which has made competing against other companies difficult. Thus companies have to be more focused on their business strategies. With that, companies have decided to outsource their core business activity, Human Resources. HR can be viewed as the actual core of the company, and without any doubt it is to say that the quality of HR determines the output and/or performance of a company. This thesis focuses on the Human Resource Outsourcing (HRO) activities, placing emphasis on the payroll process. HRO occurs when a HR activity of a company is being executed by an external service provider. With this the HR personnel has more time on their hands to focus on HR strategies striving to generate the growth of the organization.

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