Master Thesis On Outsourcing

Master Thesis On Outsourcing-53
Besides, if the firms use sole supplier, monitoring costs are added to retain sufficient expertise to supervise and monitor the performance of the supplier in order to avoid the supplier perform inadequately (Siegel 2000).

Besides, if the firms use sole supplier, monitoring costs are added to retain sufficient expertise to supervise and monitor the performance of the supplier in order to avoid the supplier perform inadequately (Siegel 2000).

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From a strategic perspective, recruiting and selection are important activities in the firms in order to select talents.

If outsourcing these firm-specific skills may hinder the ability of the firms to develop unique competencies within their workforce.

Because of the globalization and increasing environmental complexity, therefore, in my point of view, researchers should not confine to some regions.

Next issue to be discussed in this paper is about whether HR outsourcing is a tool for achieving competitive advantage.

In addition, outside agencies also could provide specialists and legal advices for such firms in which internal expertise unlikely could be employed due to the high cost.

As a result, firms can improve compliance with governmental regulations and minimized penalties (The 2002; Mobley and Maurer 1998).

For example, agencies may increase price at contract renewal, charging more for adjustments or add-on during the contract period.

(Klass, Clendon and Gainey 1999) On the other hand, extra costs may be added to the firms such as managing the relationship between HR department and the agencies (Teems 2003).

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