BENEFITS/ADVANTAGES/MERITS OF OUTSOURCING:
(1) By transferring of outsourcing non-critical HRM functions, the organisation can concentrate on critical HRM functions and perform them efficiently. HR professionals will not lose sight of critical HRM functions when routine and noncritical functions are outsourced.
(2) Performing non-critical HRM functions internally is not cost effective as such functions prove costly.
(3) BPO (HR) vendors with infrastructure and requisite skills can provide efficient services at much less cost. This gives benefit to companies in regard to outsourcing.
(4) Outsourcing results into higher return on investment through significant savings on operational and capital costs.
(5) It enables organisations to focus on “core” activities. They can shift their policies from tactical control to strategic planning.
(6) Outsourcing enables organisations to exploit more advance technologies available with the supplies. This improves quality of production and creates market reputation.
(7) It helps to undermine the power of trade unions.
(8) Outsourcing simplifies organisation structures and makes them flatter and more agile.
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