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Overview of Recommendations
As has been demonstrated above, whether or not a company should outsource its human resources management tasks and processes is a highly individual consideration. Many aspects of the company's operations, its financial standing and capital reserves, and the specific industry fluctuations must be taken into account when determining whether or not to outsource. It should be noted that this overview recommendation is by no means an exhaustive list of considerations.
Companies that are very small or that have very stable human resources needs should keep most if not all of their human resources management processes and tasks internal, and specifically should allocate these tasks amongst line managers in order to achieve the maximum efficiency. In certain industries where human resources management takes up a large amount of organizational resources yet remains very stable in the time devoted to such management -- academia and healthcare are examples, in some regions and sectors -- it might still be advantageous to maintain primarily internal human resources management structures. For companies with more diverse operations and/or more highly volatile human resources management needs, outsourcing provides clear benefits in the more immediate scalability of human resources efforts and the capital and time devoted to human resources management. Small firms with only limited human resources needs might also find a financial advantage in outsourcing for their occasional human resources management needs, as well, though...
For many modern businesses, this means outsourcing part or all of the human resources management processes and tasks of any organization. The decision must be made only after taking in all necessary information, however.
References
Becker, B. & Huselid, M. (2006). Strategic Human Resources Management: Where Do We Go From Here? Journal of Management 32(6):898-925.
Gospel, H. & Sako, M. (2010). The unbundling of corporate functions: the evolution of shared services and outsourcing in human resource management. Industrial and Corporate Change 19(5): 1367-96.
Greer, C., Youngblood, S. & Gray, D. (1999). Human Resource Management Outsourcing: The Make or Buy Decision. The Academy of Management Executive 13(3): 85-96.
Lawler, E. (2004). Human resources business process outsourcing. San Francisco: Jossey-Bass.
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