Outsourcing (Australia)

Kraut & Korman (1999) cite the 1997 Survey of Human Resource Trends where 1700 organisations were surveyed.The results indicated 50% of respondents outsourced more HR functions than they did three years ago.Mike Johnson (1997) maintains outsourcing isn't a new idea.He sees the concept of outsourcing as an ever-changing process, and notes how we as individuals'outsource the things we cannot do ourselves or are too busy to do…Just like companies…'The work of Peters, Greer & Youngblood (1998) also shows that outsourcing has been around for a long time.However, they add that it is now far more widespread, and part of an increasing trend.This increase can be seen both in the number of organisations participating in outsourcing, and the number of functions that are being outsourced.
Outsourcing has fostered the concept of'core' activities staying within an organisation (Domberger 1998).According to the Australian Government Publishing Service (1996), outsourcing is when an organisation opts to have an'activity or function' performed for them by an external agency, which has overall responsibility for the activity.Directly related to core competency in outsourcing is the desire for increased efficiency.Similarly, Ivancevich (1998) defines outsourcing as'the practice of hiring another firm to complete work that is important and must be done efficiently'.Mike Johnson (1997) agrees, saying a manager should'find the most practical, productive, cost-effective source to getting a job done, a product made, an idea developed'.
Outsourcing is becoming increasingly important in a constantly changing economy.The Australian Outsourcing Summit 2000 focused on this importance, and on the emergence of outsourcing as a powerful tool for transforming organisations and driving innovation (Corbett 2000).Managers, in searching for ways to'streamline' th…


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