Human Resource Management 2005

Outsourcing HR as a competitive strategy? A literature review and an assessment of implications

Fang Lee Cooke¹; Jie Shen²; Anne McBride¹

¹ University of Manchester · ² University of South Australia

Abstract

HR outsourcing as an organizational strategy has increased substantially over the last decade. However, this trend has attracted little academic attention regarding how outsourcing decisions are made, the manner in which these decisions are implemented, how outsourcing effectiveness is measured, and its impact on organizational performance. In this article, we provide a critical review of the reasons for, the processes involved in, and the perceived effectiveness of HR outsourcing.We investigate the implications of HR outsourcing for the role of the HR function and for the various groups of people affected by this strategy. We argue that organizations should apply both the resource-based view and institutional theory when making outsourcing decisions.

DOI

10.1002/hrm.20082

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APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓