Impact of HR outsourcing and offshoring on attitudes and behaviour of remaining employees - Essay Example

he evidence from the present study on two groups of HR employees and on HR managers, it was clear that adverse impacts were caused by outsourcing, on employees’ emotions, job roles and the psychological contract. Further, there were detrimental outcomes in employees’ job satisfaction, motivation, and related factors. These adverse impacts were higher among the payroll employees, as compared to the project group employees who were generally confident of their present and future work roles in the company.

This study is based on the theory of violation of psychological contract, and its link with the negative outcomes of outsourcing on HR in-house employees. Significantly, the HR managers expressed satisfaction in their transition to outsourcing, and believed that their employees also had a positive approach to the change. The significance of change management is recognized. Optimization of the change management process in INT Corporation using the ten principles of Corbett (2004), would facilitate a smooth transition to outsourcing, and positive impacts on in-house HR employees.

Human Resource (HR) departments of companies expect to continue implementing their current strategies of outsourcing HR services. One of the main reasons is to reduce costs due to the weakened economy. Moreover, outsourcing helps to solve a number of operational problems and improves the efficiency of HR functions in an organization. By gaining access to outside expertise, service quality is improved greatly. Thus, “with the need to reduce costs, improve efficiency and maintain high levels of employee service” (Hewitt Associates 2009: 3), it is becoming increasingly important for HR to outsource some of their functions in order to deliver higher value to the business.

Due to the significant benefits in HR outsourcing, it is vital to ensure that the transition to outsourcing is carried out in the best possible manner. “The foundation for a successful launch is built in throughout