Outsourcing Human Resource Activities in Nigeria: Benefits and Challenges

Abstract

Outsourcing typically involves transferring one or more of an organization’s business processes to an outside service provider or vendor. It is centrally on the organizational motive to safe cost and improve organizational performance. The intention of this paper is to examine outsourcing human resource activities in Nigeria: benefits and challenges. The outcome showed that HR activities/functions that is commonly outsourced is payroll administration, recruitment and selection, training and development, performance management and health and safety(benefits). The study concluded that HR outsourcing is highly beneficial to organizations. However, its pitfalls, particularly in the areas of management control and employee morale cannot be overemphasized. The study recommended that organizations should consider critically the pros and cons of HR outsourcing especially when taking decision on outsourcing HR activities.