The Value of Outsourcing The 'non value add' Activities of The Human Resource Function

The rationale for the research was to conduct an exploratory analysis into the growth of organisations outsourcing some or all of their HR administration activities and the cost savings, both tangible and intangible associated with this. HR administration can be as tedious if not challenging to the majority of the organisations. Considered to be non-value add to organisations, still HR administration requires competence, expertise and diligence to handle. Modern organisations jump into the bandwagon of HR off shoring. The global trend nowadays is to outsource, or to establish on-site outsourcing, non-core HR activities, mostly HR functions, into vendors or service providers, which are either generalists or specialists. The shift that the global HR management experience is from being tactical, administrative functions towards strategic and consultative. Why outsource? Answers to the question will generally direct to acquiring the competitive advantage. In gaining the speed and flexibility needed to compete in the global business environment, companies are obliged to reduce large capital expenditures on non-core functions and leave them to vendors. As such,the companies need not invest capital in maintaining and upgrading their HR administration systems and infrastructure. Outsourcing non-core functions also frees the HR professionals to focus on more strategic, higher-value activities