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Management of risks posed by human resource outsourcingTIAN En-shun(School of Management, South—CentralUniversity For Nationalities,Wuhan 430074.China)AbstractIn a competitive environment where human capital plays a fundamental and often decisive role in business profitability and survival,human resources outsourcing(HRO)has become a common practice.By means of HRO,companies not only gain the benefit by a more focused business approach,but insure the flexible availability of professional services where it is needed most at an affordable price.However, HRO requires thoughtful preparation and monitoring to be fully beneficia1.The benefits and risks posed by HRO are explored,and some strategies to avoid the risks are proposed at last.Key words:human resources outsourcing; benefits; risk1.INTRODUCTIONWhen companies are unable to dedicate resources toward core business needs on account of being preoccupied with operational, transactional activities,outsourcing non-core activities such as human resources will be certainly a good choice,which can free HR professionals from routine administration chores and give them a more strategic role, allow them to focus on higher value-added activities as the outsourcing vendor takes care of the day-to-day administration.HRO can be defined as:the purchasing by an organization of ongoing HR services from a third-party provider would otherwise normally provide for itself.The main idea behind outsourcing has always been,if you’re not good at it, to outsource it.Find a vendor who specializes in it.If you’d rather not be bothered by trivial,non-core processes such as benefits and payroll, recruitment,training,and performance evaluation.Then maybe you should consider human resource outsourcing.As more and more companies recognize the value in freeing themselves from costly, time-consuming and increasingly complex administration across a growing number of HR processes,they will transfer the day-to-day management of one or many HR functions t
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