Enhancing the success of outsourcing initiatives


  • Carroll Hern
  • Ronald J. Burke


Outsourcing has become an increasingly powerful option for many companies seeking to reduce costs, enhance service and focus on core competencies.  Most commonly used for information technology services, this trend of business process outsourcing (BPO) is very prevalent in Human Resources (HR).  It is a $1.36 billion industry in Canada alone and is expected to increase 10.6 percent each year over the next five years (Vu, 2004).  According to the Gartner Group, HR administrative tasks topped the list of processes outsourced in 2003 and predict that by 2007, HR BPO will be a $37.8 billion-plus industry in the United States, up from $25 billion in 2002, for an 8.6 percent growth rate.