The case against outsourcing HR

Third-party HR providers miss the custom touch that provides competitive advantage
By John Sullivan
|Canadian HR Reporter|Last Updated: 08/15/2005


uman resources has a reputation for coming up with flavour-of-the-month solutions. One of the latest fads is outsourcing a significant portion of its own work to an outside party. A vendor essentially takes care of an entire HR process that used to be done internally. Vendors and consultants who stand to gain from this fad often champion the idea.

Although outsourcing may, at first, seem like a good idea, it is important to take a critical look at it, especially in terms of productivity and competitive advantage. There are many day-to-day things that can go wrong.