Outsourcing: A Perfect Example

Metrics are an important factor in all aspects of an organization. A perfect example of how metrics apply to Human Resources is in outsourcing. By closely examining the metrics of outsourcing and applying these principles throughout other functions, the importance of metrics can be fully realized.

While modern outsourcing has been developing for some 50 years, there are still problems associated with many outsourced operations. Despite the best of intentions and planning, there will be times when things will go wrong.

It’s not always right to outsource; outsourcing doesn’t always work. Sometimes outsourcing may have been the right decision, but the process and/or execution were flawed. We have identified five imperatives that address the problems associated with outsourcing. Acting on them will optimize your outsourcing performance and eliminate the failures.

  1. Organization leaders should focus on objectives, not strategy.

  2. More and better performance metrics must be developed.

  3. Organizations should approach all “resourcing” decisions holistically.

  4. Human Resources should assume responsibility for all human capital aspects of outsourcing.

  5. Resourcing decisions should be based on performance.

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