Optimizing HR Outsourcing through Business Strategy

The paper aims at investigating on how HR outsourcing could be optimized by leveraging on different types of business strategy and the impact on human resource performance. Four types of business strategy, namely: quality-based, proactive, breadth and reactive were employed to test their influence on HR outsourcing. The data was gathered from survey questionnaire (232) on manufacturing organizations. The findings suggest that HR outsourcing was effective by espousing reactive business strategy. In fact, by relying on human resource outsourcing, the organisations manage to experience higher human resource performance. This study adds to the literature by providing information on HR outsourcing and business strategy