Outsourcing: Human Resource Issues Shouldn’t Be An Afterthought!

Much has been and is being written about outsourcing. Not a legal term, "outsourcing" refers to the arrangement whereby one company looks to another company to perform some aspect of its business operation. It’s like delegating, but at an inter-company rather than intra-company level. It’s like subcontracting, but of an internal corporate function rather than of a contractual responsibility.¹

Outsourcing is becoming increasingly common in a variety of situations. In the professional and service sectors, back office functions such as billing and photocopying/faxing are often outsourced. Administration of benefit plans (such as 401k plans and disability plans) is frequently outsourced. Many companies outsource recruiting. In large workplaces, food service is usually outsourced. In the technology and telecommunications industries, customer service may be outsourced. In manufacturing, fabrication of component parts is commonly outsourced. With specialization the norm and productivity