Strategic Management of the Benefits and Challenges of HR Outsourcing in Effective Organizational Management

The stiff competition and ever changing business environment has brought with them a plethora of challenges for organizational managers. Different programmes are often designed to overcome these challenges and enhance performance. Outsourcing has become an increasingly dominant preference for organizations seeking to focus on core competences, reduce operating costs and enhance service deliveries. Outsourcing generally is considered an important factor in today's businesses and has become the fastest growing business process outsourcing services in many countries in recent years. The growth of outsourcing as a management too is evidenced on the premises where various organisations outsource within and across borders. This study therefore outlines the strategic management of the benefits and challenges of this often controversial tool in meeting organisational needs. While the findings of this study revealed cost and time savings, among others, as some of the key reasons for outsourcing, the challenges weighed heavily on the loss of expertise and inability of business organizations to muster any form of business secrets and often lead to low morale on the part of organizational employees