Title: Off the overload: the growing HR outsourcing industry in emerging European economies - the case of Hungary

Authors: Judit Beregszaszi; Dieu Hack-Polay

Addresses: NSL Ltd., 4th Floor, Westgate House, London W5 1YY, UK ' Institute for Chinese and Asian Research (ICAR), 304 Mountain Road, Moncton E1C 2M1, New Brunswick, Canada

Abstract: This research assessed the extent of outsourcing service provision and use in Hungary. Clear differences are noticeable in the way different businesses use Human Resource Outsourcing (HRO) practices. While large organisations tend to outsource operational HR tasks, small firms often outsource full HR functions. The research evidenced cost considerations and the search for external expertise as the main drivers behind outsourcing decisions, but additional reasons included acquiring technology, minimising risks and internal bias. Performance assessment criteria for outsourcing cooperations emerged as critically difficult to agree. HRO as a business model is a solution with significant potential. The Hungarian practice was found to be similar to that of the Western territories beside lower demand, especially among small companies, which stems from the unfamiliarity with the practice. Further research is required in the field to address the perceived low demand and sophisticate the practice to attain a brighter outsourcing landscape in Hungary.

Keywords: human resource outsourcing; human resources; metrics; Hungary; emerging economies; cost considerations; external expertise; technology acquisition; risk management; internal bias; performance evaluation.

DOI: 10.1504/EJIM.2015.070227

European Journal of International Management, 2015 Vol.9 No.4, pp.409 - 424

Published online: 30 Jun 2015 *

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