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Outsourcing HR as a competitive strategy? A literature review and an assessment of implications
Author(s) -
Cooke Fang Lee,
Shen Jie,
Mcbride Anne
Publication year - 2005
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20082
Subject(s) - outsourcing , business , knowledge process outsourcing , function (biology) , competitive advantage , resource based view , business administration , industrial organization , process management , knowledge management , marketing , computer science , evolutionary biology , biology
Abstract HR outsourcing as an organizational strategy has increased substantially over the last decade. However, this trend has attracted little academic attention regarding how outsourcing decisions are made, the manner in which these decisions are implemented, how outsourcing effectiveness is measured, and its impact on organizational performance. In this article, we provide a critical review of the reasons for, the processes involved in, and the perceived effectiveness of HR outsourcing.We investigate the implications of HR outsourcing for the role of the HR function and for the various groups of people affected by this strategy. We argue that organizations should apply both the resource‐based view and institutional theory when making outsourcing decisions. © 2005 Wiley Periodicals, Inc.