Research On Application Of Human Resource Outsourcing In Chinese Corporations

Since China joined the WTO in2001, its domestic economy has been developing continuously, and the market is growing mature gradually. As enterprises are strengthening, they are linking with international in the way of operating management, learning lessons, and running normatively. The business model of outsourcing can bring company many benefits. It can reduce the cost of firm and integrate external resource efficiently. At the same time, the internal limited resource can be used in kernel business to develop core competence. As a result, it is developed rapidly. In2003, P&G made cooperation with IBM in human resource management outsourcing project. The basic services of human resource, such as emolument, allowance and employee data, are to be done by IBM. This was a huge sensation, and also led to attention in academy and enterprises. Simultaneously, domestic tertiary industry is growing rapidly. Many companies which focus on human resource management are found. Also, some international large sized human resource service companies get into China. These help enlarge domestic market of human resource outsourcing. This outsourcing has been a worthy way for enterprises to change the model of operation and raise the strategy status of human resource department.Although this outsourcing grows rapidly now in China, it was started late, so it has risks when carried out. For example, as the factor of information asymmetry exists, it can be danger for companies while choosing subcontractor. And as human resources outsourcing is sure to bring revolution, it can intensify the internal contradiction. By illustrating the human resource outsourcing and analyzing the case of HY outsourcing, this article summarizes the attention for companies which will carry out human resource outsourcing. At last, it can be a reference for Chinese companies. The main content includes the following aspects:Chapter1, this paper introduces the background and significance of research on human resource outsourcing, at the same time, gives the main research contents, methods and framework.Chapter2, this paper gives a general discussion of human resources outsourcing. It introduces the concept of human resources outsourcing and describes some basic theories in this line in details such as core competence theory, transaction cost theory, strategic management theory, principal-agent theory and the theory of division of labor. Meanwhile it introduces some related research of human resources outsourcing from some domestic and foreign scholars as well, and gives a summary.Chapter3, this paper elaborates the development and operation of human resources outsourcing in China. Besides, the operation process of human resources outsourcing have also been summarized in parts including determinations of contents and mode, selection of service provider, signing of the contracts and supervision of the implementation in these steps.Chapter4, this paper focus on the deep analysis of the two cases of human resources outsourcing in HY company. Start from the HY company’s basic background and human resources management situation, it introduces the first and twice implementation process of human resources outsourcing respectively. On the basis of a detailed analysis of the first outsourcing failure, it compares and analyzes the two outsourcing in different aspects such as decision making, provider’s selection, communication with the employees as well as the supervision of the providers. And thus, it provides the human resources outsourcing risk avoidance measures for corporations’reference.Chapter5, it gives a summary and outlook.