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HR and Outsourcing
Transcript of HR and Outsourcing
Issues and Evaluation
Presented by : Tigran & Julian
OK, Firstly What Is Outsourcing ?
Oh, it is Simple :)
“the tasks that were previously performed in-house are now purchased from another firm.”
Hill et al. (2008)
Reasons for Outsourcing
Greater Focus on Core Activities
Efficiency & Flexibility
New technologies and skills
Now we know corporate benefits of Outsourcing
Let us discuss its challenges and issues on HRM
Challenges for HR Managers
Managing turnover and absenteeism
Creating job satisfaction and commitment
Organizing and designing the work
From HRM perspective,
we identified following Issues
1. Budget Pressure of Host Company
2. Our own performance
3. Quality of communication
4. Value Added Work or not ?
Good News !!! WE have a MODEL
Contract & Legal
Motivation & Socialisation
Anderson & Ankerstjerne (2010)
Examples ? Sure !
Outsourcing Problem Within Vodafone
Who’s With Vodafone here?
Do you like the service?
Scenario – Last week I called up Vodafone to check to see what was going on with my network coverage, due to the fact that my calls were dropping out half the time. It took them
Approximately an hour to:
1. Understand My Problem
2. Seek to see what the Problem was
3. Give me a professional answer
Happened to you Before?
Vodafone Fail ?
Caused Lack of User Satisfaction
Proved that there had been Poor Training and development
Created a loss in profitability
Loss in Market Share
Example – Outsourcing Problem with Qantas
Travelled with Qantas Before? How did you find the flight?
What was outsourced?
- Qantas outsourced Maintenance Work
- What went wrong?
Increase in Mechanical Failures
“If you outsource a problem, you
usually end up with an outsourced
What Went Wrong?
- Lack of Communication Management
- Lack of Training and Development
- Understood Benefit, but didn’t consider
Impact on HRD
Prevents Training & Development
Poor Union Power in Outsourced Country
HR laws and guidelines wont progress because of outsourcing
Outsourcing & Reasons
Impact on HRD