Image transcription text Making an Outsourcing Decision In this technique, you asked to identify a business function for Human Resources that is secondary to the

Image transcription text Making an Outsourcing Decision
In this technique, you asked to identify a business function for Human Resources that is secondary to the department’s operation. Then lay out the issues that
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require consideration when deciding to outsource that function or not. This is a common scenario for many HR departments, who have outsourced payroll,
employee terminations, and other functions where they can make a good business case for such a decision.
Form a
For inspiration, read the article Analyzing the Make-or-Buy Decision by Mind Tools (no date). It reviews the process for analyzing a make-or-by decision around
Strategic Alliance
Retain
outsourced services. The article identifies what the author considers the two most strategic decisions you need to consider; the importance of the task, and the
impact on performance.
Strategic Importance
As the window on this page demonstrates, a function that is strategically important to the business and has a high impact on operational performance should
be kept "in-house". A function that is low on both measures should be eliminated altogether. Another option is to share control of a function through a "strategic
allience" with a business partner when the operational performance is low. Outsourcing makes the most sense when the performance needs to be high but the
importance is low.
Eliminate
Outsource
Does this model work? Try the activity below:
Instructions
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Low
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Think of an HR function that is important to your company but secondary to the department’s operation. Then analyze the function’s suitability for outsourcing
Contribution to Operational Performance
by opening a new document in Microsoft Word and answering the following questions: (2 points each)
Source: MindTools
1. Describe the function you identified and why it is important to 1) Human Resources and 2) the business.
2. Explain how this function is strategically important or makes an impact on performance.
3. Rate this function on a scale of one (lowest) to five (highest) for both factors.
4. Decide the quadrant where this function belongs based on your rating.
5. Analyze the result explain why you think this model does or does not work for the function you identified.