Disadvantages
HR Outsourcing can
- Reduce corporate robustness by changing support functions
- Require considerable care in coordinating information flow with the agency
- Reduce the organization’s learning capability by depleting its skill base
- Impair the Organization’s ability to integrate processes
- Compromise the organization’s control over the functions that are outsourced
- Damage morale and motivation as jobs appear to be lost
- Increase employees’ insecurity, whether staff remain in the Organization or are hired by the Agency