Outsourcing (Australia)
Kraut & Korman (1999) cite the 1997 Survey of Human Resource Trends where 1700 organisations were surveyed. The results indicated 50% of respondents outsourced more HR functions than they did three years ago. Mike Johnson (1997) maintains outsourcing isn't a new idea. He sees the concept of outsourcing as an ever-changing process, and notes how we as individuals 'outsource the things we cannot do ourselves or are too busy to do...Just like companies...' The work of Peters, Greer & Youngblood (1998) also shows that outsourcing has been around for a long time. However, they add that it is now far more widespread, and part of an increasing trend. This increase can be seen both in the number of organisations participating in outsourcing, and the number of functions that are being outsourced.Outsourcing has fostered the concept of 'core' activities staying within an organisation (Domberger 1998). According to the Australian Government Publishing Service (1996), outsourcing is when an organisation opts to have an 'activity or function' performed for them by an external agency, which has overall responsibility for the activity. Directly related to core competency in outsourcing is the desire for increased efficiency. Similar
Monitoring and transition costs represent other areas of concern. There are transaction costs in researching, negotiating, administering, and controlling numerous contractors (Peters, Greer & Youngblood 1998). Domberger (1998) says '... many would say that the greatest burden of contracting is the necessity of monitoring'. However, Domberger also believes that this view is not always clearly argued, as it implies that external agents require more monitoring than in-house staff. He says that the lack of evidence to support this argument may be because there is generally little or no monitoring before the service is contracted out. Companies outsource some or all of their IT department, of their logistics department (such as transportation or warehousing), or one or more functions within the human resources department, such as payroll or training.
Some common words found in the essay are:
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Approximate Word count = 2876
Approximate Pages = 12 (250 words per page double spaced)
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