Critical issues in people resourcing (2): the dilemmas with outsourcing and offshoring

This chapter explores outsourcing and offshoring strategies as a means of resourcing the organisation. Definitions of outsourcing and offshoring will be explored and the rationale for and against such strategies will be examined. Although such strategies are often justified on short-run cost benefits, the discussion will raise issues relating to the long-term implications associated with, among other things, declining employer-funded training, skills losses, and reduction of organisational and national competitiveness. The discussion will use current examples of HR outsourcing and offshoring and explore their impact on the UK economy.