Some Firms Decide to Reinsource HR

As reported in HRI, some companies are discovering that previously outsourced HR functions need to be brought back in-house. Citing reasons such as poor performance, cost overruns, lack of communication and lack of strategic alignment, Human Resource Executive magazine noted in its November 2005 issue that several companies are reexamining their HR outsourcing. Functions like recruiting are being "reinsourced" because vendors don't understand a company's particular industry and therefore can't execute workforce planning. Better technology is also allowing organizations to do previously outsourced work in-house. (Human Resource Executive [Patton], November 2005, pp. 81-83)