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The Popularity of Outsourcing Proposal Essay

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Updated: Feb 16th, 2022


It might be assumed that outsourcing has become quite a popular measure to undertake for a plethora of companies; thus, it has been an object of many scholarly and stakeholders’ investigations. Many scholars define employees’ perceptions as an essential factor to consider while implementing any type of human resource outsourcing. Nevertheless, academicians tend to explore the effects of this outsourcing by applying various approaches and demonstrating different opinions on the issue. Some of them claim that human resource outsourcing causes an exceptionally negative impact on employee’s morale. The others notice the positive impact of HR outsourcing on the perceptions and behaviors of personnel. Despite this, it might be claimed that the scholarly dimension does not reject the importance of the attitude of staff to HR outsourcing. It is even emphasized that employees’ vision should play a significant role while making decisions regarding HR outsourcing.

Problem Statement

Employees’ perceptions and behaviors are a vital element of any business environment, and human resource outsourcing affects substantially; thus, it seems reasonable to discuss to which extent and how HR outsourcing influences personnel.

Research Objectives

  1. To assess the perceptions and behaviors of employees within the scope of implementing human resource outsourcing and define similarities and differences among these perceptions and behaviors in order to determine essential tendencies.
  2. To measure the vital factors that staff takes into account while facing HR outsourcing, as well as their impact on employees’ perceptions and behaviors to identify the character of this influence – either positive or negative.
  3. To understand the extent to which the personnel’s knowledge of the fact that HR outsourcing is to be implemented affects their performance in order to define possible effects on the business environment as a whole.
  4. To discuss the peculiarities of obtained perceptions and behaviors to provide a solid rationale regarding the essence of HR outsourcing in the framework of its impact on employees’ performance.

Significance of the Study

Plenty of transnational and domestic companies apply HR outsourcing to gain various benefits, as well as increased profit margins. However, not only the business performance is being affected by HR outsourcing – in the first turn, these are employees whose work is likely to be diminished. Nowadays, “Technology makes it easy to outsource HR activates to specialist service providers, by allowing service providers real time internet based access to the employer’s human resource information database” (Rao, 2017, p. 5). Such conditions have led to the notable popularity of the HR outsourcing approach.

The choice in favor of HR outsourcing is made by rapidly and energetically developing companies. The goal of such companies is to maximize the concentration of available financial and human resources and involve them in the implementation of the main production tasks and strategic projects. It should be noticed that companies of various scales turn to HR outsourcing services: both small ones with a staff of a hundred or two employees, and large ones with an extensive network of branches. True, they give contractors different business processes; small companies, for instance, usually prefer full HR outsourcing. Nevertheless, employees tend to percept the undertaking of human resource outsourcing differently, which results in varying indicators of job satisfaction. Hence, it seems reasonable to discover the intersection between HR outsourcing and personnel’s perceptions of it that results in concrete behavior. The abovementioned facts might serve as a strong foundation for the significance of the study.


Rao, V. (2017). SSRN. Web.

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Work Cited

"The Popularity of Outsourcing." IvyPanda, 16 Feb. 2022, ivypanda.com/essays/the-popularity-of-outsourcing/.

1. IvyPanda. "The Popularity of Outsourcing." February 16, 2022. https://ivypanda.com/essays/the-popularity-of-outsourcing/.


IvyPanda. "The Popularity of Outsourcing." February 16, 2022. https://ivypanda.com/essays/the-popularity-of-outsourcing/.


IvyPanda. 2022. "The Popularity of Outsourcing." February 16, 2022. https://ivypanda.com/essays/the-popularity-of-outsourcing/.


IvyPanda. (2022) 'The Popularity of Outsourcing'. 16 February.

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