Outsourcing vs insourcing in the human resource supply chain: a comparison of five generic models

Abstract

Purpose -The purpose of this paper is to develop a typology of human resource supply chain (HRSC) models that enable comparison of different models for making more informed strategic HR outsourcing decisions. Design/methodology/approach -In the paper interviews and company documents were used to construct multiple comparative case studies. Findings -The paper finds that five generic HRSC models were identified in two broad categoriestwo in-sourcing models (local contracting and HR centralizing) and three outsourcing models (purchasing HR, non-staffing HR, and staffing HR). Additional findings relate to the redistribution of power and competencies for managing HR within and between organizations.Research limitations/implications -The paper shows that future research should account for different HRSC models to address various dependent variables, especially distribution of power and HR competencies in managing HR supply chains and contribution to firm performance. Future studies on strategic alliances can benefit from building on the HRSC models in building different types of partnerships. Practical implications -In this paper it is found that managers have a means for comparison of different HRSC models to make more fully informed strategic outsourcing decisions and to develop related HR competencies related to each one of the generic models. Originality/value -This paper clarifies critical differences in five different generic HRSC models that must be accounted for in research on strategic HR and outsourcing. Without understanding the differences in HRSCs, managers often unwittingly relinquish power and control over critical HR functions to other organizational units or vendor organizations.

An exploratory study of governance in the intra‐firm human resources supply chain

“…One of the key related issues the SCM literature addresses relates to the balance of power and control along the supply chain (Kosnik, Wong-MingJi, & Hoover, 2006;Scarbrough, 2000). Power exerted by one party over another is most likely to result in an adversarial relationship (Kosnik et al, 2006). Another way to conceptualize this relationship, however, is to seek reciprocal interdependence (Koulikoff-Souviron & Harrison, 2007).…”

“…Kosnik et al, 2006;Scarbrough, 2000) and reciprocal interdependence through embeddedness (cf. Koulikoff-Souviron & Harrison, 2007) are especially relevant.…”

Research on Human Resource Management Outsourcing

“…Miao Xiaoming (2005) discusses the staff drain risk, enterprises interior risk, asymmetric information risk and enterprise information leak risk [10].Tom Kosnik (2003) gives five generic models of human resource outsourcing related to staffing of non-core employees [11]. Juliana D. Lilly (2005) puts forward the proposed model of the relationship between competition, amount of human resource outsourcing and human resource performance [12].…”

Inter-sourcing

“…For example, Kosnik, Wong-MingJi and Hoover [9] describe five models of human resource supply chains. The two insourcing models they discuss are local contracting and HR centralizing.…”