This article reviews developments in human resource outsourcing (HRO) in recent years,\r\nparticularly in light of the severe economic recession prevailing since 2007. It establishes\r\nthat companies are increasingly outsourcing routine HR processes, and in some cases,\r\ncritical HR processes in view to cut costs. The article takes the view that while such a\r\nstrategy could be viable in the short term, its long-term strategic effectiveness is\r\nquestionable. This view is founded on widely accepted assumptions that people are critical\r\nassets in organizations, thus, commanding that companies maintain a strong hold on vital\r\nemployee commitment processes. Outsourcing may not be the only valid framework for the\r\nfuture; companies must consider alternatives.
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