AMC Indian Journal of Entrepreneurship

Open Access Open Access  Restricted Access Subscription Access

From Recruitment to HR to Manufacturing Outsourcing: A Narrative Research


Affiliations
1 Associate Professor, School of Management, KIIT University, Patia, Bhubaneswar, India - 751 024, India
2 Additional District Magistrate and Research Scholar, School of Management, KIIT University, Patia, Bhubaneswar, India-751 024, India

   Subscribe/Renew Journal


Though the outsourcing concept and industry is a couple of decades old, the emergence of human resource outsourcing to a principal employer is a fairly recent phenomenon. In this case, human resources are provided by a third party vendor for various requirements. Earlier, non-essential services were in scope but hiring contractual employees for business critical functions such as manufacturing, quality, and others have started emerging. The functional split has created opportunity for outsourcing service providers. Various literature have argued about the pros and cons of such a practice from short and long term perspectives and mostly from the principal employers point of view. Research is inadequate from the point of view of outsourcing service provider.

Through this narrative research we understand the entrepreneurial and operational perspectives of outsourcing service provider. The mismatch between the demand for skilled employees and availability creates opportunity for this sector. However, benefits to the principal employer, service provider, and employees remains a mismatch. Presence of contractual and permanent employees, salary and compensation, career progression and competency building, productivity and morale of employees are likely to become complex to manage. We call for additional research to understand the changed organisational dynamics due to this emergent practice. Entrepreneurs in this sector also need to configure their value proposition from various services and complexities involved.


Keywords

Challenges, entrepreneurship, opportunities, outsourcing, productivity

Paper Submission Date : August 2, 2022 ; Paper Sent Back for Revision : August 12, 2022 ; Paper Acceptance Date : August 14, 2022

User
Subscription Login to verify subscription
Notifications
Font Size

  • Abdul-Halim, H., Ee, E., Ramayah, T., & Ahmad, N. H. (2014). Human resource outsourcing success: Leveraging on partnership and service quality. SAGE Open, 4(3). https://doi.org/10.1177/2158244014545475

  • Bengtsson, L., & Dabhilkar, M. (2009). Manufacturing outsourcing and its effect on plant performance—Lessons for KIBS outsourcing. Journal of Evolutionary Economics, 19, 231. https://doi.org/10.1007/s00191-008-0129-1

  • Butler, M. G., & Callahan, C. M. (2014). Human resource outsourcing: Market and operating performance effects of administrative HR functions. Journal of Business Research, 67(2), 218–224. https://doi.org/10.1016/j.jbusres.2012.09.026

  • Chiang, F. F. T., Chow, I. H.-S., & Birtch, T. A. (2010). Examining human resource management outsourcing in Hong Kong. The International Journal of Human Resource Management, 21(15), 2762–2777. https://doi.org/10.1080/09585192.2010.528658

  • Delmotte, J., & Sels, L. (2008). HR outsourcing: Threat or opportunity? Personnel Review, 37(5), 543–563. https://doi.org/10.1108/00483480810891673

  • Glaister, A. J. (2014). HR outsourcing: The impact on HR role, competency development and relationships. Human Resource Management Journal, 24(2), 211–226. https://doi.org/10.1111/1748-8583.12031

  • Jha, S., Choudhary, P., & Panda, E. (2022). India Skills Report 2022. https://wheebox.com/assets/pdf/ISR_Report_2022.pdf Kakabadse, A., & Kakabadse, N. (2005). Outsourcing: Current and future trends. Thunderbird International Business Review, 47(2), 183–204. https://doi.org/10.1002/tie.20048

  • Kar, B. (2015). Karmic cycle: The context, and an entrepreneurial journey. Entrepreneurship and Innovation Management Journal, 3(2), 90–103. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2604807

  • Kar, B. (2017). Entrepreneurial persistence and exit: An empirical investigation. Twelfth Biennial Conference on Entrepreneurship, 1, 678–692. http://library.ediindia.ac.in:8181/xmlui//handle/123456789/5964

  • Kar, B., Kapur, S., & Panda, A. K. (2017). Why do entrepreneurs quit? An exploratory analysis. Management and Administrative Sciences Review, 6(3), 104–118. https://www.academia.edu/33264440/Why_Do_Entrepreneurs_Quit_An_Exploratory_Analysis

  • Kar, B. (2019). Do entrepreneurial intentions drive outcomes? Productivity, 60(1), 1–11. https://doi.org/10.32381/PROD.2019.60.01.1

  • Kar, B. (2020). Narrative research in entrepreneurship: Khirod Parida of access Odisha. Parikalpana: KIIT Journal of Management, 16(1 & 2), 199-206. https://doi.org/10.23862/kiit-parikalpana/2020/v16/i1-2/204562

  • Kar, B., & Ahmed, Y. A. (2019). Personality, challenges and performance: Evidence from Ethiopia’s young entrepreneurs. SEDME (Small Enterprises Development, Management & Extension Journal), 46(2), 117–129. https://doi.org/10.1177/0970846419852497

  • Kar, B., & Ahmed, Y. A. (2021). Quit or continue? The influence of demography, challenges and performance. Journal of Global Entrepreneurship Research. https://doi.org/10.1007/s40497-021-00264-3

  • Kar, B., & Ahmed, Y. A. (2022). Exploring kin and family support to young firms in Ethiopia. African Journal of Economic and Management Studies, 13(3), 385–401. https://doi.org/10.1108/AJEMS-05-2021-0199

  • Kar, B., & Kar, S. (2022). Role of institutions: A case of plastic industry entrepreneur. AMC Indian Journal of Entrepreneurship, 5(1), 8–17. https://doi.org/10.17010/amcije/2022/v5i1/169380

  • Kar, B., Mishra, R., & Mohanty, J. (2014). Revisiting the factors influencing entry and success of entrepreneurship. The International Journal of Management, 3(3), 34–47. https://doi.org/10.2139/ssrn.2533106

  • Kar, B., Pathak, M. D., & Panda, M. C. (2018). Experiential and persistent entrepreneur: Deepak Jain from Subtlelabs. AMC Indian Journal of Entrepreneurship, 1(4), 7–15. https://doi.org/10.17010/amcije/2018/v1i4/141217

  • Kar, B., & Patra, P. K. (2017). Partners in crime: The risk in entrepreneurship. Parikalpana: KIIT Journal of Management, 13(1), 126–136.

  • Kar, B., & Tripathy, S. (2020a). Jagruti: Suvendu Sekhar Mahapatra Electronics and Telecommunication to Solid Waste Management. AMC Indian Journal of Entrepreneurship, 3(2–3), 7–15. https://doi.org/10.17010/AMCIJE/2020/V3I2-3/153294

  • Kar, B., & Tripathy, S. (2020b). Gen-next entrepreneur: Passion, efficacy, intention, and the role of family. AMC Indian Journal of Entrepreneurship, 3(4), 13–21. https://doi.org/10.17010/amcije/2020/v3i4/155755

  • Kuruvilla, S., & Ranganathan, A. (2010). Globalisation and outsourcing: Confronting new human resource challenges in India’s business process outsourcing industry. Industrial Relations Journal, 41(2), 136–153. https://doi.org/10.1111/j.1468-2338.2009.00559.x

  • McCarthy, I., & Anagnostou, A. (2004). The impact of outsourcing on the transaction costs and boundaries of manufacturing. International Journal of Production Economics, 88(1), 61–71. https://doi.org/10.1016/S0925-5273(03)00183-X

  • Pathak, M. D., Kar, B., & Panda, M. C. (2022). Chaos and complexity: Entrepreneurial planning during pandemic. Journal of Global Entrepreneurship Research. https://doi.org/10.1007/s40497-022-00306-4

  • Sarangi, S., Singh, R. K. R., & Kar, B. (2022). A comparative assessment of migrant and indigenous entrepreneurs on regional development: A case of Odisha, India. Growth and Change, 53(1), 170–199. https://doi.org/10.1111/grow.12580

  • Schlosser, F., Templer, A., & Ghanam, D. (2006). How human resource outsourcing affects organizational learning in the knowledge economy. Journal of Labor Research, 27, 291–303. https://doi.org/10.1007/s12122-006-1024-x

  • Shen, J. (2005). Human resource outsourcing: 19902004. Journal of Organisational Transformation & Social Change, 2(3), 275–296. https://doi.org/10.1386/jots.2.3.275/1


Abstract Views: 290

PDF Views: 0




  • From Recruitment to HR to Manufacturing Outsourcing: A Narrative Research

Abstract Views: 290  |  PDF Views: 0

Authors

Brajaballav Kar
Associate Professor, School of Management, KIIT University, Patia, Bhubaneswar, India - 751 024, India
Purna Chandra Mishra
Additional District Magistrate and Research Scholar, School of Management, KIIT University, Patia, Bhubaneswar, India-751 024, India

Abstract


Though the outsourcing concept and industry is a couple of decades old, the emergence of human resource outsourcing to a principal employer is a fairly recent phenomenon. In this case, human resources are provided by a third party vendor for various requirements. Earlier, non-essential services were in scope but hiring contractual employees for business critical functions such as manufacturing, quality, and others have started emerging. The functional split has created opportunity for outsourcing service providers. Various literature have argued about the pros and cons of such a practice from short and long term perspectives and mostly from the principal employers point of view. Research is inadequate from the point of view of outsourcing service provider.

Through this narrative research we understand the entrepreneurial and operational perspectives of outsourcing service provider. The mismatch between the demand for skilled employees and availability creates opportunity for this sector. However, benefits to the principal employer, service provider, and employees remains a mismatch. Presence of contractual and permanent employees, salary and compensation, career progression and competency building, productivity and morale of employees are likely to become complex to manage. We call for additional research to understand the changed organisational dynamics due to this emergent practice. Entrepreneurs in this sector also need to configure their value proposition from various services and complexities involved.


Keywords


Challenges, entrepreneurship, opportunities, outsourcing, productivity

Paper Submission Date : August 2, 2022 ; Paper Sent Back for Revision : August 12, 2022 ; Paper Acceptance Date : August 14, 2022


References





DOI: https://doi.org/10.17010/amcije%2F2022%2Fv5i3%2F172439