Outsourcing human resources affects manufacturing

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Due to the emergence of globalisation, the outsourcing has become one of

the widely accepted business strategies (Felix & Shale, 2016). In the recent past,

most of the firms have outsourced its diversified business operations with the

ultimate aim of enhancing their service and product quality, to reduce production

cycle, time lag and reduction of costs (Cooke et. al., 2005). The outsourcing also

facilitates to focus on the core competencies of a firm which also highly influence

on the organisational effectiveness. Thus, firms can be focused on the set of limited

functions and outsource other business activities to outsiders who are specialists in

the respective field (Delmotte & Sels, 2008). This strategy paves the way to focus

on the core business activities for attaining competitive advantage and outsourcing

of low-value-added activities to other firms (Hirschhorn & Gilmore, 1992;

Ulrich, et al., 2008).