Outsourcing key to HR strategic role?

By David Brown
|CHRR, Guide to Strategic HR|Last Updated: 07/21/2003

“A lot of organizations believe that human capital will be the most important basis for competitive advantage and if that is true, the department that is going to be most responsible for creating competitive advantage will be HR,” said Ed McMahon of Watson Wyatt. “I think it will be very difficult for HR departments to come to terms with pressure to become strategic partners if they are mired in transactional issues.”

He believes, as do many other strategic HR experts, that HR will only do this through outsourcing — or strategic sourcing, as McMahon prefers — or utilizing technology to automate transactional activities.

Here too, the survey revealed Canadian HR professionals are not exactly rushing to jump on board.