Competitive Strategy Of Human Resource Outsourcing

Human Resources Outsourcing (HRO) in China is subjected to a freely competition and a rapidly grow industry with an annual compound rate of20%. It is also a major developed and subsidized services outsourcing industry in China. Particularly, the Labor Dispatching function represents80%of this industry. The amendment of the Labor Contract Law released on December2012had put a "Magic Spell" to limit the application of Labor Dispatching. What can Labor Dispatching companies do to flight for their survivals and development under this background?In China, an idiom says that there is always an opportunity from the risk. This article uses a case study of ABC company running the HRO business in China. It elaborates the innovation and the advantages of the "HKMS" information system developed by ABC company which covered its technical framework, functional modules and operation workflow. The whole idea is to borrow the concept of "Fourth-party Logistics"(4PL) to bring up the concern of "Fourth-party HRO platform"(or called "Fourth-party HR"). This article also applies the theory framework of the strategy of "cooperation-competition" to analyze how companies face cooperation and competition. It also raises the suggestion of "Cooperation Game" and to analyze the "Fourth-party HR"(4th PHRO) platform and the possibility and reality of the "cooperation-competition" in the HRO industry.This article uses the case study of4th PHRO platform of ABC company to analyze its technical framework, services modules, products solutions and capitalization so as to find out the feasibility of running the4th PHRO; this article also applies the theory framework of the strategy of "Non-cooperation Game". By going through the study of the business module of4th PHRO to raise the suggestions or solutions to the risk of HRO business running in China, and ultimately proof that "Non-cooperation Game" is the best solution among the HRO business in China.