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.

Theme 3: Main drawback of outsourcing for companies
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
Interpretation: The concept of Human resource outsourcing is not only consisting many
benefits but at the same time the concept also has number of drawbacks which are faced by
companies at the time of adoption of this concept. Some main drawback of this concept includes
lack of control over employees, time consuming process, lack of knowledge etc. On the basis of
above stated pie chart, it has been identified that 10 people believes that major drawback of this
topic is that it is a time consuming process. These respondents thinks that when company gives
its HR work to external people, then its existing staff have to explain each and every work to the
third party people. All this procedure consumes huge time of team which becomes its drawback
of Human resource outsourcing. Other 10 people have stated that according to their belief
Human resource outsourcing reduces control of employer from the employee. In order to support
this statement, these respondents have said that when recruitment of employees is done from
third party then these selected employees are attached with the suppliers which ultimately
reduces control of the company from its employees as they do not interact with their actual
10
10
10
a) Time consuming process
b) Lack of control over
employees
c) Lack of knowledge

employer. On the other hand, left over 10 people have represented that lack of knowledge
becomes main drawback of this Human resource outsourcing. As these respondents thinks that
when main work of HR department is done by someone else then it does not update knowledge
of HR professionals of the company. This shows that their knowledge is not updated effectively.

Theme 4: Outsourcing of human resource is helpful for companies in increasing its
business growth
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
Interpretation: The concept of Human resource outsourcing is beneficial for the
companies which results in the quick growth of the company in less period of time. As per the
above mentioned graph, it has been evaluated that 22 respondents have shown their positive
response towards the stated statement as they thinks if company outsource its HR functions then
it helps them in improving the performance of company as a result it helps in high business
growth. Whereas leftover 18 people have denied to the similar concept as they thinks the term
has its own drawback which also reduces performance of employees. For understanding this
effectively, they have further stated that when recruitment is not done by actual HR manager of
the company, then it becomes drawback for the company as the external party is not able to
explain actual work requirement to the candidates which makes them unaware about actual work.
As a result, when these candidates actually executes business activities then their output is not
22
18 a) Agree
b) Disagree

more effective. This shows that Human resource outsourcing is not contributing in the business
growth of company.
Theme 5: HR outsourcing is influencing other organisational function
Q 5) Do you think, HR outsourcing is influencing other organisational
function?
Frequency
a) Agree 35
b) Disagree 5
Interpretation: Human resource outsourcing influences other organisational functions as
they are interrelated with one other. It can be said that human resource department of the
company provides workforce to other functional areas of the organisation. These employees
works hard for their respective department as a result they attain their targeted goals and
objectives. This shows influence of Human resource outsourcing on other organisational
functions. On the basis of above specified graph, it has identified that 35 respondents have
supported to this statement as they have seen many cases related to this in their personal life.
Whereas, 5 remaining people have stated their negative response towards the same statement. In
order to support this statement, these respondents have said that every organisational function is
different from one another. Therefore, Human resource outsourcing does not affect anything in
the company.
35
5
a) Agree
b) Disagree

Theme 6: Major influence of HR outsourcing on various organisational functions
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
Interpretation: Human resource outsourcing has its influence over different
organisational function. Some of these influence includes bringing skilled employees in
company, enhances performance of employees with the help of effective training and quick
achievement of goals and objectives of each and every organisational functions. According to the
above mentioned pie graph, it has been analysed that 12 people supports the statement that
major influence of Human resource outsourcing on other organisational functions bringing
skilled employees in company with effective networking. Whereas. 15 among the chosen
respondents thinks that Human resource outsourcing is helpful in providing effective treatment
12
15
13
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

to employees which results in improvement of performance of employees. This is because, these
respondents thinks that Human resource outsourcing is helpful for other functions of company as
they are HRO is providing effective training to employees which ultimately improves their
performance. On the other hand, leftover 13 people have stated that major of influence of Human
resource outsourcing on organisational function of company is quick achievement of goals of
every organisational function. As these external party provides training to employees which
helps them in attaining their respective goals in less period of time.

Theme 7: Major reason due to which HR outsourcing takes place
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
Interpretation: There are numerous of reasons which influences HR manager of the
company to adopt human resource outsourcing in order to simplify their work and maximise
their productivity. According to the above represented pie graph, it has been analysed that the
main reason which influences HR manager for outsourcing is continuous increasing operational
cost and upcoming challenges developing at workplace. While asking this question to
respondents, it has been analysed that 25 people supports to the first statement that is continuous
increasing operational cost is the major reason which influences companies to go for third party
expertise to execute their business work in effective manner. On the other hand, remaining 15
respondents believes that increasing work place challenges influences HR manager of company
to share their responsibility with others so that they can concentrate on issues and work
effectively on them.
25
15
a) Continuously increase in
operational costs
b) Upcoming challenges
related to workplace

Theme 8: Different HR function which are generally outsourced
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
Interpretation: Human resource department of the company is performing various
functions which are valuable for the company. The main HR functions which are performed by
HR manager of organisation includes payroll, training and development, labour law compliance
and high volume recruitment activities. HR managers of large scale company generally
outsources different activities to suppliers or third party people so that work could be managed
effectively and their work pressure can be decreased. On the basis of above stated pie graph, it
has been identified that according to the perception of 11 people main HR function which is
outsourced by HR manager is payroll. These people thinks that payroll function of HR is very
complicated and time consuming that is why its HR manager mainly outsource for the purpose of
11
10 7
12
a) Payroll
b) Labour law compliance
c) Training and development
d) High volume recruitment
activities

reducing their efforts. 10 respondents believes that majorly outsourced HR function is
compliance labour. This is because, every HR manager is required to have in depth knowledge of
labour laws so that they can provide effective and safe environment to employees. For this, HR
manager of the company gives this responsibility to other expertise. Whereas, 7 respondent
thinks that HR manager mainly outsource training and development work to external. On the
other hand, left over 12 people thinks that mainly HR department outsource recruitment activities
to third party.

Theme 9: HR outsourcing increases employee turnover in organisations
Q 9) Do you think, HR outsourcing increases employee turnover in
organisations?
Frequency
a) Yes 26
b) No 14
Interpretation: The main negative effect of human resource outsourcing is seen as the
increase in employee turnover in company. As per the above stated graph, it has been analysed
that 26 respondents have said that yes human resource outsourcing increases employee turnover
as they external hirer are not able to retain employee when they plans to switch the company. On
the other hand, remaining 14 respondents thinks that it is not the reason of increase in employee
turnover as work of human resource outsourcing is to bring talented employees for company but
the rest of the part of dealing with employees is up to company only. So, it can be said that
external party is not responsible of increase in employee turnover.
26
14
a) Yes
b) No

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