Consequences of Outsourcing Strategies on Employee Quality of Work Life, Attitudes, and Performance

Outsourcing is the strategic use of outside resources to perform activities that are usually handled by internal staff and resources. The consequences of implementing outsourcing strategies in an industrial setting were studied using a field study. This study was designed to explore both the financial as well as the human aspects of outsourcing activities. The attitudinal results of this research indicated that the outsourcing strategies had a negative impact on the perceived quality of work-life dimensions. The performance results presented here provide, at best, circumspect support for the claims of outsourcing proponents that the technique improves participants' performance and productivity. Although outsourcing can lead to certain gains for the organization, there are definitely human costs to be taken into account, and they should be considered as major factors contributing to the outsourcing debate, not just the financial aspects of organizations' decisions.

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