Outsourcing: just one HR professional in 10 thinks it helps their strategic input

Only 10% of HR professionals agree that outsourcing the function enables them to become more strategic, a CIPD report has revealed.

The HR Outsourcing and the HR Function report, published by the Chartered Institute of Personnel and Development (CIPD), found that 29% of employers now outsource HR, but just 7% said this had been an all-round success.

Less than half (47%) said outsourcing had been a success in some areas, and only 11% said the move had enabled their function to take on a more strategic role.

But civil service HR functions could still be forced to pursue outsourcing after shadow Cabinet Office minister Francis Maude told Personnel Today he would increase outsourcing of Whitehall functions to make essential efficiency savings if the Conservatives win the next election.

Vanessa Robinson, head of HR practice at the CIPD, said: “Outsourcing is already on the up in the private sector, and is highly likely to rise in the public sector with both government reviews and opposition policy statements indicating they intend to outsource civil service HR.

“The rise in HR outsourcing offers a real opportunity for HR professionals to fulfil a more strategic role. With HR outsourcing certain to be a growing reality, the profession needs to ensure it has the skills, capabilities and self-belief to adopt a more strategic role.”

Meanwhile, the Employment Trends 2009 survey, conducted by the CBI and recruitment consultancy Harvey Nash, found that just over a quarter of employers had already or planned to move work overseas in response to the downturn.

In the banking, finance and insurance sector this figure rose to 54%, while in manufacturing 31% of employers planned or were considering moving work overseas.

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