Is the sub-contracting of elements of human resource management to outside providers. Many organizations outsource aspects of their HR, such as recruitment advertising or training. In its most developed form, however, virtually the entire human resource function can be outsourced. HR outsourcing may be cost-effective and can allow businesses to draw on expertise that is too expensive to retain in-house. Critics, however, suggest that it can lead to reliance on standard policies, ill-suited to particular business needs, diminish the standing and influence of the HR profession and is indicative of a low priority being attached to the management of people.
Subjects: Human Resource Management.