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In addition, outside agencies also could provide specialists and legal advices for such firms in which internal expertise unlikely could be employed due to the high cost.As a result, firms can improve compliance with governmental regulations and minimized penalties (The 2002; Mobley and Maurer 1998).
So far it seems a lot of positive outcomes of outsourcing.
However, one of the benefits – cost reduction, which is deemed as the firm desire benefit from outsourcing, is a controversial topic and raise counter-argument in some literatures.
From a strategic perspective, recruiting and selection are important activities in the firms in order to select talents.
If outsourcing these firm-specific skills may hinder the ability of the firms to develop unique competencies within their workforce.
They believe that outsourcing could benefit to organisations such as reducing overhead costs, gaining expertise from outside agencies, minimizing the regular workload of HR staff and improving quality and efficiency of the organisation.
However, does outsourcing really provide a numerous of benefits to the firm and solve all problems without having any negative impacts to the firm?
Many surveys and academic researches were conducted in the past decade and shows that the use of HR outsourcing is growing and continuing to increase.
More firms have started to outsource their HR functions for a variety of reasons.