Challenges and Impacts of Human Resource Outsourcing (HRO) in Bangladesh

Abstract

By HRO we mean using a third party to undertake HR functions for an organization. In Bangladesh, from the last ten to twelve years many private organizations (non-govt.) are getting accustomed with the practice. Cost and time reduction, touch of expert work etc. are the various reasons for which the practice is getting significance day by day. But the organizations that are providing services are facing some challenges. The purpose of the study is to work with these challenges in depth. As it is a very new practice the numbers of service providers are very limited (not more than 30) in the country.

For data collection a questionnaire including both open-ended and close-ended questions was designed. Situational cases were also used. From the study it is found that govt. rules-regulations, service quality of providers and mismatch with organizational culture firms are the main sources of challenges in this sector.