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The background for outsourcing can be different, but the conclusion for a business that outsources is that it is to the business's advantage; it is done to create competitive advantage. Connecting with partners who add value to the company's value chain is increasingly strategically important. In other words, a company's value chain does not need to be exclusively within the company's walls.
Profitable
Outsourcing as a term has a long tradition in Norwegian businesses, and it is traditionally most widespread within IT and accounting. In recent years, it has also become more common in HR. Services such as recruitment and staffing have become common areas to outsource for many companies; they choose to purchase the service externally because they see it as the most profitable overall.
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Expensive personnel department
Most businesses in Norway are small and medium-sized businesses and many do not have their own personnel departments. General managers in these companies have many areas of responsibility and a wide range of tasks, which can cover everything from sales and marketing to financial management and strategy. Capacity for HR work can thus be limited and it can be difficult to set aside time for necessary tasks. This can be everything from recruitment processes to carrying out employee interviews with your own employees. Even so, most agree that it is valuable and useful to invest time in both current and future employees.
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What is the advantage of outsourcing HR services?
One of the reasons for outsourcing is an increased degree of flexibility. The possibility of upgrading and downgrading according to needs is greater when buying externally. The ability to be flexible and to adjust the workforce to the company's needs is an important area for being competitive and is the reason why many people use the staffing service area. Staffing solutions mean solutions where the company gets access to the necessary workforce quickly. The employer's responsibility lies with the supplier, so that it reduces administration for the company.
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By purchasing these services from an external partner, the company's general manager can gain access to specialized cutting-edge expertise and his own focus can be kept on the company's own core business.
A new area for outsourcing within HR is the outsourcing of HR management.
A new area for outsourcing within HR is outsourcing of HR management. An ever-increasing proportion of Norwegian businesses are knowledge-based. In such businesses, the employees are the most important resource. The employees' competence and skills, so-called human capital, are a more important part of a company's competitive advantage than it was previously. Why? Human capital is hard to copy! It helps to make a business unique, together with the business model and other strategic measures. In other words, it is more important than ever to take care of the employees.
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