Outsourcing the HR Function in the New Economy

In the current changing economic environment, organisations are searching for ever more flexibility in their quest towards competitiveness. One of the avenues towards flexibility is the outsourcing of some business processes, whether it is to achieve cost cutting or acquire expertise from external organisations. The HR function or some of its components have also been subjected to outsourcing for some time. However, the decision of what to outsource, how, when, and to whom in HR is not exempt from risks. This chapter reviews the existing literature on outsourcing the HR function that has addressed these questions and generates and agenda for research in order to orient researchers’ efforts to reach more conclusive evidence about the practice of HR outsourcing.