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Why would HR not want outsourcing?
One of the biggest success stories in business in recent years, and let’s face it, there haven’t been too many, has been outsourcing and the developments brought from it. You only need to look at the number of countries surging ahead with plans and hoping to topple India, China and Malaysia from near the top of the outsourcing list. This is because the countries who take on board outsourcing are well aware of the benefits that the jobs and association bring to their nation but the firm who is undertaking the outsourcing is also a recipient of great benefits. Many firms have been struggling to remain financially viable of late but by using outsourcing as a means of reducing labor costs yet retaining a high standard of product, it has been possible for firms to remain trading and build a platform to have a better future.
However, it appears that not everyone is enamored and in love with outsourcing which has caused an uproar in those within the outsourcing community. Okay, not everyone is going to love the idea, especially those who may find that they are going to lose their job because of outsourcing but when a large poll of HR staff are commenting on the effectiveness of outsourcing, it is possibly time to sit up and take notice of what people are thinking.
The Chartered Institute of Personnel and Development (CIPD) have released figures after polling their members which bucks the general trend of how people are viewing outsourcing. Fewer than 50% of those asked believed that outsourcing had been a success and less than 10% of respondents stated that outsourcing had been a total success. This follows on from the calculation that 29% of all companies questioned stated they used outsourcing as part of their HR requirements. Clearly, there is still a long way to go to ensure that outsourcing is rolled out properly amongst the industry but figures like these will do very little to encourage the remaining firms to enter this market and gain the benefits that are being obtained by other firms and departments.
As with all surveys, care has to be taken about how was asking the question and why they were asking it? If many of the people currently employed in the HR industry are asked about outsourcing, they may have a fear that they will lose their own jobs to outsourcing and therefore may be keen to push a negative image of outsourcing. This would make sense when trying to reconcile the opinion that most other industries and departments have about outsourcing, the vast majority of which seems to be of a popular note.
These findings probably tell consumers more about the reliability and honesty of people answering surveys, and indeed the reason why surveys are commissioned in the first place, as opposed to being a true gauge on outsourcing in the HR industry.