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Many surveys and academic researches were conducted in the past decade and shows that the use of HR outsourcing is growing and continuing to increase.More firms have started to outsource their HR functions for a variety of reasons.Therefore, it was found that arguments are raised in many strategic HR literatures.
As the authors state, firms can gain competitive advantage through outsourcing which could provide better, faster and cheaper the best-in-world HR services (Jeffay, Bohannon and Laspisa 1997, p.42).
Switser (1997) also has similar point of view, he pointed out that outsourcing the transaction-based HR activates can free HR managers and other managers to struggle with strategic business issues (Switser 1997).
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.
Indeed, these are not only the benefits to the firms.
Another benefit does not mention in the article including free sources for other purpose.
So far it seems a lot of positive outcomes of outsourcing.
However, one of the benefits – cost reduction, which is deemed as the firm desire benefit from outsourcing, is a controversial topic and raise counter-argument in some literatures.
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.