Establishment of expectations. It relates to the points that should be covered in sourcing contract. They are the following: outsourcing goals, terms and conditions, fee structure, roles and tasks of each party, managing changes, customer satisfaction.
1. Increase ROI on internal resources involved by concentrating their major part on the spheres of key importance and of highest strategic relevance of the company.
2. It can let employees use in the fullest manner advantages, innovations and special capabilities from outside.
3. Vary cost structure with simultaneous meeting of organizational needs (Ulrich, 1996).
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How can an HR sourcing strategy add value to organizational performance? This is a relevant question that arises not only in minds of HR leaders, but also in minds of CEOs as they want their investments for the development of HR departments be fully covered and effectiveness of HR work totally correspond to company’s short-term and long-term business goals and expectations. CEOs in general want to see highly professional staff that strives to raise company’s income and goodwill, and that is why they tightly cooperate with HR leaders positioning them as business executives next to them. To this extent, successful HR managers are equally building company’s investment attractiveness, address corporate governance and impact to the company’s strategic performance.
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Vision of the final result. As I have already mentioned it is important to have a vision of “endgame” and understand what your organization and top management expect from the chosen sourcing solution. Vision should be constructed in details including investment plan with demonstration of how investment will be returned.