OUTSOURCING IN HUMAN RESOURCE MANAGEMENT: CURRENT STATE
В.М. Бойченко
Abstract
Open-access reader
В.М. Бойченко
Abstract
Open-access reader
The term "outsourcing" means "attraction of external resources". The main types of outsourcing include: IT-outsourcing, manufacturing outsourcing and business process outsourcing. The main forms of outsourcing operations include: partial and compatible, compliant, intermediate and transformational outsourcing. \nToday in Ukraine there are over 900 companies that provide various outsourcing services to companies of all forms of ownership various in industries. \nEffectiveness of two Ukrainian outsourcing companies (Ciklum and SoftServe) was noted by the Indian publishing house СyberMedia, which included them in the world ranking of outsourcing companies Global Services 100. \nAlso, specialized research was conducted in Ukraine, which showed that 36 % of respondents outsource the following business processes: IT-services (40.5 %); logistics (35.1 %); resource support for manufacturing processes (27 %); marketing services (21.6 %); recruitment (18.9 %); accounting (13.5 %); payroll preparation (13 %); processing and systematization information (8.1 %); outsourcing medical representatives (8.1 %); HR record management (5.4 %); various administrative functions (2.7 %). \nIt is noted that presently, the use of such a form of outsourcing as outsourcing in the field of personnel management is extremely important for improvement of the efficiency of any enterprise. But it is only advisable when an outside process is more productive and cost-effective than an in-house one. In addition, it has several advantages for businesses, which include: concentration of their own resources on core business goals; access to the latest technologies; an opportunity for a company to respond flexibly to changes in the market and within the company; no downtime or disruptions; optimization of the full-time staff number; no legal liability and risks associated with the staff; lack of employment obligations to employees; cost savings in personnel management; optimization of the tax burden. \nHowever, there are disadvantages of outsourcing in human resource management, which involve certain risks, namely: a possibility to obtain low quality products or services; threat to confidentiality; probability of partial or complete loss of control over certain business processes; improper legislation base for regulation of relationship between client enterprises and outsourcing companies. \nThus, according to the author it is advisable to use HR-outsourcing at enterprises, because it allows them to turn fixed costs into variable ones and direct investment flows to the important activity which, in turn, can improve their performance and raise competitiveness in the market.
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The term "outsourcing" means "attraction of external resources". The main types of outsourcing include: IT-outsourcing, manufacturing outsourcing and business process outsourcing. The main forms of outsourcing operations include: partial and compatible, compliant, intermediate and transformational outsourcing. \nToday in Ukraine there are over 900 companies that provide various outsourcing services to companies of all forms of ownership various in industries. \nEffectiveness of two Ukrainian outsourcing companies (Ciklum and SoftServe) was noted by the Indian publishing house СyberMedia, which included them in the world ranking of outsourcing companies Global Services 100. \nAlso, specialized research was conducted in Ukraine, which showed that 36 % of respondents outsource the following business processes: IT-services (40.5 %); logistics (35.1 %); resource support for manufacturing processes (27 %); marketing services (21.6 %); recruitment (18.9 %); accounting (13.5 %); payroll preparation (13 %); processing and systematization information (8.1 %); outsourcing medical representatives (8.1 %); HR record management (5.4 %); various administrative functions (2.7 %). \nIt is noted that presently, the use of such a form of outsourcing as outsourcing in the field of personnel management is extremely important for improvement of the efficiency of any enterprise. But it is only advisable when an outside process is more productive and cost-effective than an in-house one. In addition, it has several advantages for businesses, which include: concentration of their own resources on core business goals; access to the latest technologies; an opportunity for a company to respond flexibly to changes in the market and within the company; no downtime or disruptions; optimization of the full-time staff number; no legal liability and risks associated with the staff; lack of employment obligations to employees; cost savings in personnel management; optimization of the tax burden. \nHowever, there are disadvantages of outsourcing in human resource management, which involve certain risks, namely: a possibility to obtain low quality products or services; threat to confidentiality; probability of partial or complete loss of control over certain business processes; improper legislation base for regulation of relationship between client enterprises and outsourcing companies. \nThus, according to the author it is advisable to use HR-outsourcing at enterprises, because it allows them to turn fixed costs into variable ones and direct investment flows to the important activity which, in turn, can improve their performance and raise competitiveness in the market.
Key concepts: Outsourcing, Business, Knowledge process outsourcing, Human resource management, Human resources, Industrial organization, Resource (disambiguation), Business administration