HR Administration Outsourcing: How HR professionals optimize the Core Activities


In this globalized world, companies are trying to get strategic advantage by taking decisions to enhance operational capability of the company. Outsourcing some of the organizations operations to other companies which are specialist in doing those operations. When it comes to HR administration some of the activities are considered as core and other transferring non-core operations of the organizations company can divert the resources to the more important work which is going to be more productive. It is very important to select non-core activities of the organization because if some of the HR activities should be in the hands of the organizations which should not be outsourced. In order to achieve objectives of the research qualitative research methodology is followed where survey is conducted in which number of HR professionals are going to be participated. Research conclusions are prepared based on the responses of the HR professionals.

Aims and Objectives of the Research:

The Aim of the Research is to optimize the core Activities of HR professional by moving non-core Human Resource activities to HR business process outsourcing organizations. Following are specific objectives of this research:

  1. To examine how moving of non-core HR activities to outsourcing firms enhance the performance and efficiency of the organization.
  2. To identify how HR administration could give strategic advantage to the organization compare to its competitors.
  3. To examine how HR administration outsourcing increase the efficiency of HR professionals
  4.  To examine how HR Administration Outsourcing helps in cost cutting in organization operations.

Research Questions:

The main research question we have to address here is how outsourcing non-core HR administration activities can give more space for HR managers to work on more productive activities. The main activities which can be outsourced to other organizations are maintaining organizational structure, recruiting, training, analysis of individual department progress, staff orientation programs, employee welfare programs and employee benefit management programs. Following are some of main research questions which are going to be addressed in this research and they are

1. How non-core HR administration outsourcing can increase the organizational efficiency and reduce the cost of operations?

2. How outsourcing can allow HR professional to concentrate more strategic functions?

3. What is the criterion in deciding core and non-core HR administrative functions?

.4.What can be the negative impacts of HR administration outsourcing? 

Background of the study:

Human Resource administration mainly deals with procedures, structures, and policies rather than the results of the organization. The primary activity of HR administration of any company is preparing policies and strategies, Recruitment of staff, Payroll management, and performance management and so on. HR activities of any company can have greater impact on success of the organization and influence the organization to make changes in strategic objectives. Individuals who are responsible to frame HR administration policy can be held for organizations success or failure.

HR administration is of no use if it not enhances the organizations operational capability and it looks non value adding department of the company which is of no benefit. So HR administration required really skilled, hardworking, intelligent people who can really make the difference to the organization in a positive context.

Now new trend in global market is outsourcing which is mainly done by the companies either to enhance the performance of one particular service and decrease the workload of the employees or to reduce the operational cost of the organizations. Most or the organizations in HR administration wants to transfer non-core activities to the specialist service provide companies .This new trend is shifting HR administration is from being tactical towards strategic.

The main reason for HR administration outsourcing is to achieve strategic advantage that is achieving more profits and getting appropriate resources to succeed in global markets. Organizations in last 8 years are mainly concentrating to reduce large capital investments on non-core HR administration operations and leave them to other outsourcing organizations. The main reason behind this is most of the organizations are losing their time and resources in maintaining and upgrading HR administration systems  which eventually puts so much pressure on the organization and individuals. Transferring non-core functions to outsourcing also allows the managers to concentrate their time in strategic and core HR administration activities.

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