How to Get Best Value from HR by Reilly Peter;Williams Tony;

Author:Reilly, Peter;Williams, Tony;
Language: eng
Format: epub
Publisher: Taylor & Francis Group
Published: 2017-08-15T00:00:00+00:00

are specialist in nature and rarely performed

are irregularly required making resourcing decisions difficult

where there is a mature external market

are subject to rapid technological change making it expensive to keep up to date

where it is difficult to supply labour (costly or difficult to recruit, train and retain).

A third way of looking at this is to analyse your core business areas or core competencies to determine what you retain and what you outsource. An example used by one organization is shown in Figure 5.1. This uses a core/non-core distinction together with a supply indicator: is there a ready supply of labour with the requisite skills or an absence/shortage? Thus if the activity is core then outsourcing would only occur if it was difficult to carry out the work in house because of a shortage of skills. This still begs the question of the definition of the core and how it is arrived at. Some organizations would use the type of criteria listed above. Other organizations may make a more considered judgement on those activities that are thought to be the source of its competitive advantage and those that are not. Yet this, too, requires further analysis as it is by no means immediately apparent what provides competitive advantage.

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