CIPD - HR outsourcing: the key decisions

Corporate and HR strategy

A Summary of the CIPD Executive Briefing

This is the final report from a research project on HR outsourcing conducted on behalf of the CIPD by a team of researchers led by Professor William Scott-Jackson from the Centre for Applied HR Research, Oxford Brookes University. The report is available to purchase online - please visit our bookstore for more details and to find out how to order.

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HR outsourcing is not new. It has received a lot of attention in recent years, and there has been considerable debate about its potential benefits despite little concrete evidence of its impact. What is clear is that HR functions continually need to improve the efficiency of the administrative services they deliver, as part of their shift to a more strategic and influential future. They can choose to improve their efficiency via the exploitation and investment in HR information systems (HRIS) or they can look to draw on the technology and expertise of an external supplier, for example via outsourcing.

This research uses detailed case studies to consider the pros and cons of outsourcing, and to probe more deeply into the decision-making process that precedes entering into an outsourcing arrangement.

Specifically it addresses:

how outsourcing is defined
potential benefits of outsourcing
potential pitfalls and alternatives to outsourcing
decision-making regarding HR outsourcing
selecting outsourcing providers
managing transition from in-house to outsourcing
minimising risk and making outsourcing work

As such it offers practitioners the necessary tools to make an informed decision as to whether HR outsourcing is the appropriate response for them.

SCOTT-JACKSON, W., NEWHAM, T., and GURNEY, M. (2005)
HR outsourcing: the key decisions. Executive briefing. London: CIPD

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