Inductive research approach is followed in this context, where the actual theory of the research is derived from the observations with respect to the research problem considered. Importance of HR outsourcing and the key pros and corns of it are studied at this research level and the solution to the research problem identified requires proper observations without any assumptions and thus always the inductive research approach is suited for this project.

As a case study level research is required in the inductive research, Royal Bank of Scotland (RBS) is considered as the case and in this context few roles in the bank are chosen as the respondents and based on the inductive approach the research findings are derived in the form of a theory and this theory is purely derived from the observations against the interview process with the official of RBS.