Business Research Report: HR Outsourcing Strategies and Findings

This report presents a business research study focusing on HR outsourcing. The research methodology section details the research philosophy (interpretivism), types of investigation (qualitative), research approach (deductive), and data collection methods (primary and secondary). It also outlines the sampling technique (random sampling) and sample size (40 respondents) used. The report includes a questionnaire designed to gather data on awareness, benefits, drawbacks, and the influence of HR outsourcing. The data analysis section interprets the responses to the questionnaire, highlighting key themes such as the concept of outsourcing, the main benefits (cost savings, improved performance), and drawbacks (lack of control, time-consuming process). The analysis provides insights into the impact of HR outsourcing on various organizational functions and employee turnover, offering recommendations for companies considering outsourcing HR functions.

Business Research

Table of Contents
RESEARCH METHODOLOGY.....................................................................................................3
Research Philosophy .............................................................................................................3
Types of investigation............................................................................................................3
Research approach..................................................................................................................3
Data collection method...........................................................................................................3
Sampling Technique...............................................................................................................4
Sampling Size.........................................................................................................................4
Questionnaire..........................................................................................................................4
DATA ANALYSIS..........................................................................................................................8

RESEARCH METHODOLOGY
Research Philosophy
It refers to the belief in which phenomenon has been explained about how should be the
data is gathered, used and analysed by the researchers. It is categorised into two main parts
“Positivism and interpretivism”. Positivism philosophy helps in providing positive as well as
ethical knowledge and data on the basis if natural phenomenon but on the other hand
interpretivism helps in providing data on the basis of social action theory (Flick, 2015). In this
research, investigator have chosen interpretivism philosophy as it provides data and information
on the basis of human perception.
Types of investigation
Investigation can be done on the basis of two methods, qualitative and quantitative
research. According to qualitative research, investigator collects data such as meaning,
definition, concept and many more. It is refereed as a theoretical collection of data. But on the
other hand quantitative research focuses on collecting information on the basis of mathematical
techniques (Kumar, 2019). With the help of sampling and online survey research can collect
information from potential individuals. In this type of research, researcher can maintain the
accuracy of results. In this research, investigator uses qualitative method for collecting
information in order to conduct the research in an effective manner.
Research approach
Research approach refers to the procedure and plan that is helpful in reaching detailed
information gathered from data collection method. The approach is later helpful in interpreting
collected data and analysing it effectively for obtaining true outcome from it. It is mainly of two
types that is deductive and inductive research approach (Mackey and Gass, 2015). In the current
research, deductive type of research approach has been used by investigator as it is helpful in
gaining true outcome of the research in effective manner.
Data collection method
Primary method of data collection:
In this method, researcher gathers information directly from the respondent or chosen
population. It has been evaluated that data which is being collected by this method completely
raw and authentic (Silverman, 2016). This method is time consuming but it is valuable in finding

out accurate outcome for the research topic. In this, researcher can collect information by using
various sources like interview, surveys, experiments, field testing, personal observance etc.
Secondary method of data collection:
In this method of data collection, information is gathered from work of the some other
researcher which have been done by them in past. This collected information is available on
many sources and has been analysed by many other people too for their respective research
(Smith, 2015). Here, researcher uses various secondary sources like books, journals , magazines,
published data, newspapers, etc. It can be said that it is best suitable method of data collection
which owns capability of satisfying research topic within less period of time with authenticity.
Sampling Technique
In general, sample refers to the subset or small part chosen from the overall population.
Along with this, selection process refers to sampling. Total number of elements chosen in the
whole sample refers to sample size. In this research report, random sampling is selected by the
researcher in order to conduct the whole research effectively (McCusker and Gunaydin, 2015).
Major reason behind choosing this technique is that each and every individual from the whole
population get equal chance to get selected.
Sampling Size
Sampling size refers to the number of respondents which have been chosen by the
investigator for the purpose of collecting information from respondents. It can be said that data
collected by these respondents is taken into consideration while identifying valuable outcome for
the same (Litosseliti, 2018). In context of the present investigation, researcher have chosen 40
respondents for grabbing best possible outcome effectively.
Questionnaire
Questionnaire
Q 1) Are you aware with the concept of outsourcing human resource functions?
a) Yes
b) No
Q 2) As per your thoughts, which one is the main benefit of outsourcing for businesses?
a) Sharing of risks

b) Improvement in performance of company
c) Saves of cost of company
Q 3) According to your thoughts, which of the below mention are the main drawback of
human resource outsourcing for companies?
a) Time consuming process
b) Lack of control over employees
c) Lack of knowledge
Q 4) Do you think, outsourcing of human resource is helpful for companies in increasing its
business growth?
a) Agree
b) Disagree
Q 5) Do you think, HR outsourcing is influencing other organisational function?
a) Agree
b) Disagree
Q 6) As per your thoughts, what is the major influence of HR outsourcing on various
organisational functions?
a) Brings best talented candidates for all functions
b) Improves performance of employees with effective training
c) Quick achievement of goals of every organisational function
Q 7) According to you, which one among the below stated is the major reason due to which HR
outsourcing takes place?
a) Continuously increase in operational costs
b) Upcoming challenges related to workplace
Q 8) As per your thoughts, what are the main HR functions which are generally outsourced?

a) Payroll
b) Labour law compliance
c) Training and development
d) High volume recruitment activities
Q 9) Do you think, HR outsourcing increases employee turnover in organisations?
a) Yes
b) No
Q 10) Provide some recommendation to the companies who are outsourcing HR functions.
Questionnaire
Q 1) Are you aware with the concept of outsourcing human
resource functions?
Frequency
a) Yes 25
b) No 15
Q 2) As per your thoughts, which one is the main benefit of
outsourcing for businesses?
Frequency
a) Sharing of risks 10
b) Improvement in performance of company 12
c) Saves of cost of company 18
Q 3) According to your thoughts, which of the below mention are the
main drawback of human resource outsourcing for companies?
Frequency
a) Time consuming process 10
b) Lack of control over employees 10
c) Lack of knowledge 10

Q 4) Do you think, outsourcing of human resource is helpful for
companies in increasing its business growth?
Frequency
a) Agree 22
b) Disagree 18
Q 5) Do you think, HR outsourcing is influencing other
organisational function?
Frequency
a) Agree 35
b) Disagree 5
Q 6) As per your thoughts, what is the major influence of HR
outsourcing on various organisational functions?
Frequency
a) Brings best talented candidates for all functions 12
b) Improves performance of employees with effective training 15
c) Quick achievement of goals of every organisational function 13
Q 7) According to you which one among the below stated is the
major reason due to which HR outsourcing takes place?
Frequency
a) Continuously increase in operational costs 25
b) Upcoming challenges related to workplace 15
Q 8) As per your thoughts, what are the main HR functions which
are generally outsourced?
Frequency
a) Payroll 11
b) Labour law compliance 10
c) Training and development 7
d) High volume recruitment activities 12
Q 9) Do you think, HR outsourcing increases employee turnover in
organisations?
Frequency
a) Yes 26

b) No 14

DATA ANALYSIS
Theme 1: Concept of outsourcing human resource functions
Q 1) Are you aware with the concept of outsourcing human resource
functions?
Frequency
a) Yes 25
b) No 15
Interpretation: Human resource outsourcing refers to the process in which HR
department gives contract of its internal services(sub functions) to external parties. The term is
commonly called as HRO. According to the above specified graph, it has been analysed that
HRO is an effective concept that reduces work pressure of HR department in the company.
While asking about its concept, it has been analysed that 25 people have said that they are aware
about this concept as they are working in HR department of large scale companies. On the other
hand, leftover 15 respondent have said that they have not heard this term earlier because they are
working in small companies where all of the HR functions are performed within the company
only. Therefore, they do not understand this term and its work both.
25
15
a) Yes
b) No

Theme 2: Main benefit of outsourcing for businesses
Q 2) As per your thoughts, which one is the main benefit of outsourcing
for businesses?
Frequency
a) Sharing of responsibility 10
b) Improvement in performance of company 12
c) Saves cost of company 18
Interpretation: Human resource outsourcing is seen as the beneficial term for all
especially HR department of large scale companies whose work is not limited to the hiring and
firing of employees. Some of the common benefits of Human resource outsourcing includes
improvement in performance of company, sharing of risks and saves cost of organisation. As per
the above stated pie graph, it has been analysed that 10 people have said that main benefit of
Human resource outsourcing is that it shares responsibility of HR department. This is because,
the third party suppliers helps HR team in performing their basic work effective which also
reduces their efforts. Whereas, 12 people have represented that main benefit of Human resource
outsourcing is that it brings well skilled employees in the company that ultimately enhances
10
12
18 a) Sharing of responsibility
b) Improvement in performance
of company
c) Saves cost of company

performance of company in effective manner. This is because, it also leads to quick achievement
in goals and objective of company in less period of time which shows their improvement in
performance. Whereas, remaining 18 people have said that main benefit of this concept is that it
saves cost of the company. This is because, when company itself perform all HR function, then it
consumes lots of money. But at the same time, if this work is performed by third party then it
will require low amount as they are already expertise in this work, they also knows tactics by
which they can save their money in effectively.