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Outsourcing Essay

2670 words - 11 pages

Human Resource Management, |
Group Work – Assignment #1
Semester: Fall 2015/2016 |

Outsourcing and its presence in the business community in relation to human resource.

What is outsourcing?

Outsourcing is a business strategy that involves delegating parts of the work to workers, suppliers, or contractors that operate outside of the business. The primary goal of using this type of business strategy is to save money and be more cost effective. Common uses of this are when the business acquires goods from a supplier outside of the business, or utilizes services from experts or specialists that are otherwise unaffiliated with the primary business. Having these arrangements ...view middle of the document...

This means that an expert can do the surveys or construction for you and find out what might be stronger business decisions. Many different roles that are important for the operations of a business can be outsourced, and it’s up to the business to determine what functions might need to be outsourced to increase profits and efficiency.

Identify at least two benefits and two challenges for an organization that is considering outsourcing some of its HR processes.

The main benefit that outsourcing is used for is the lower costs involved. By utilizing the expertise or efficiency of outside sources, cheaper costs of operation can be obtained. As this is the main reason for many companies to use outsourcing, it is important to ensure that the outside help is skilled enough for their expertise to be worth the price. Another benefit that can be considered is strategic optimization. This occurs when the business using outsourcing is able to better concentrate on the core operations of the company, rather than tending to supporting tasks that are handled by the outside help. By concentrating on the main operations of the business, maximum efficiency, growth, and development can be achieved.

One of the primary challenges of outsourcing is dependence on the worker, supplier, or contractor being utilized. If the business continually uses the same outside source for their work over long periods of time, they become dependent on that source and could run into issues if that source ever stopped operating. These issues could include increased costs of operation, lack of production efficiency, or even the complete inability for the outsourcing business to function. Another major challenge is the risk of exposing confidential data. There are situations where confidential data must be given to outside help in order for them to assist the business. Some examples of such scenarios might be giving a recipe to a supplier, or revealing security gaps to a contractor. Despite these risks, outsourcing remains a valid strategy for many types of businesses to use in order to increase their profits or optimize their efficiency.

Case 1: Gibbons vs. Sports Medicine Inc. [2003]

Prohibited grounds

In this case, sex is the prohibited ground of discrimination identified. The complainants claim that “their right to equal treatment with respect to employment without discrimination because of sex has been infringed” (Gibbons vs. Sports Medic Inc., 2003, para 1).


Charlene Ladouceur and Lorrie Gibbons worked together at Sports Medic Inc. owned by Gary McNab. Charlene administered first aid during sport events and conventions while Lorrie transferred patients by ambulance with Gary. Both were victims of sexual harassment from Gary at different times and in different places. Charlene endures and kept quiet about her situation out of fear of losing her job if she fought or told the police. On the other hand, Lorrie expressed her disgust to what Gary’s doing...

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