Outsourcing human resources affects manufacturing

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).