+ 44 20 8144 3706Rationale:
Outsourcing today is commonly used by the business firms because there are a number of factors which are affecting business like competition and costing, etc. In the current time period in single domain large numbers of companies are operating and in order to remain in the market they are offering their products at cheaper price. If product price or service price reduced, then profitability also decline and due to this reason it’s become very important to reduce costs in the business (Crowley-Henry and Al Ariss, 2018). Thus, generation of economies of scale become inevitable in the business. The interesting fact is that 30% of the overall cost is covered by the employees or 30% of total expenses go to HR expenses. Firms always remain focused on cutting HR expenses so that cost can be reduced to some extent. In this regard, they prefer to outsource business task to the Asian firms. HR Solutions are facing problem with its Asian customer support service provider as a firm is not providing quality service to the former firm clients.
Hence, due to this reason HR Solutions lost some of its clients and now it is in dilemma whether to remain in Asia or develop self in house team or outsource task to any EU firm. There are number of reasons due to which firm must not stop outsource of its business task to the Asian company. Some of them are given below.
• Curb on HR cost: As mentioned above HR expenses cover 30% of the total cost and due to this reason firms always focused on controlling HR expenses in the business. In the Asian market labors are available at cheaper price and due to this reason firms instead of developing in house teams outsource their business task to the Asian firms. Currency spread is another factor that lowers down the outsource cost. As it can be seen that currency value of countries like India, Bangladesh and Russia, etc (Sheehan, Grant and Garavan, 2018). is very low relative to Euro. Hence, small amount of money converted into a big amount in aforementioned nations. So, basically availability of cheap labor and currency difference are the factors that lower outsource cost to great extent. Outsource assist firm to generate economies of scale in its business and to take that advantage consistently firm must not leave Asian customer support Service Company.
Conclusion:
On the basis of the above discussion, it is concluded that outsource of task help firm in generating economies of scale in the business. Instead of developing in house team or giving the task to the EU firm HR Solution must regularly keep on outsourcing of its task to the Asian company. Instead, firms must direct Asian customer support Service Company to hire candidates for its project according to skill set and criteria share by it. Moreover, the Asian company needs to follow a talent management strategy and under this it must improve its organizational culture and conduct T&D programs frequently. Apart from this, succession plan must be prepared so that new opportunity can be provided to the employees in the company. By making all these efforts problems of the employees can be solved on time in proper manner and better working environment can be provided to them. This lead to high retention of employees at the workplace.
References:
Books and Journals
Crowley-Henry, M. and Al Ariss, A., 2018. Talent management of skilled migrants: propositions and an agenda for future research. The International Journal of Human Resource Management. 29(13). pp.2054-2079.
Gelens, J. and et.al., 2015. Affective commitment of employees designated as talent: Signalling perceived organisational support. European Journal of International Management. 9(1). pp.9-27.
Grissom, J.A. and et.al., 2017. Central office supports for data-driven talent management decisions: Evidence from the implementation of new systems for measuring teacher effectiveness. Educational Researcher. 46(1). pp.21-32.
Kamal, M.Y. and Lukman, Z.M., 2017. The influence of talent management practices on job satisfaction. International Journal of Academic Research in Business and Social Sciences. 7(7). pp.859-864.
Latukha, M. and Selivanovskikh, L., 2016. Talent management practices in IT companies from emerging markets: A comparative analysis of Russia, India, and China. Journal of East-West Business. 22(3). pp.168-197.
Lopes, S.A., 2016. High performers are not superheroes: bridging exclusive and inclusive talent management approaches for law firm sustainability. International Journal of the Legal Profession. 23(2). pp.207-231.
Narayanan, A., 2016. Talent management and employee retention: Implications of job embeddedness-a research agenda. Journal of Strategic Human Resource Management. 5(2).
Ohlrich, K., 2015. Exploring the impact of CSR on talent management with generation Y. South Asian Journal of Business and Management Cases. 4(1). pp.111-121.
Rotolo, C.T. and et.al., 2018. Putting an end to bad talent management: A call to action for the field of industrial and organizational psychology. Industrial and Organizational Psychology. 11(2). pp.176-219.
Saadat, V. and Eskandari, Z., 2016. Talent management: The great challenge of leading organizations. International Journal of Organizational Leadership. 5. pp.103-109.
Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: a macro and micro analysis of current issues in hospitality and tourism. Worldwide Hospitality and Tourism Themes. 10(1). pp.28-41.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of human resource management. Human Resource Management Review. 25(2). pp.139-145.
Online
How to manage your internal hiring and job posting process., 2020.
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