Outsourcing HR-Tasks

Question 1

What are advantages of Outsourcing HR-Tasks?

Answer 1

• concentration on core competencies
• making fix costs more variable
• increasing performance through specialization
• decreasing negative effects of the workload vision
• increased flexibility
• increased marked orientation
• transfer of risks

Question 2

What are disadvantages of Outsourcing HR-Tasks?

Answer 2

• high transaction costs (data security, communication time)
• overlapping tasks
• low acceptance among employees & works council
• sometimes decreased independency
• risk of losing know-how