Sepúlveda Ramírez, Laura A.

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An exploratory study of human resources outsourcing practices within organizations in Puerto Rico
(2009) Sepúlveda Ramírez, Laura A.; Javier Montalvo, Dafne; College of Business Administration; Colón, Marta; Ortiz, Rosario A.; Department of Business Administration; Delgado, Olben
This study explores and describes the current state of the HRO practice in Puerto Rico from the HRO service buyer point of view. Then results are compared to a similar study conducted in 2006. Ninety eight, out of 478 different organizations, active members of the Society for Human Resource Management, participated in the study. Almost two thirds (65%) of the organizations are either outsourcing HR functions or consider outsourcing HR functions in the future which might indicate a future growth on HRO in Puerto Rico. At present, the main drivers to outsource HR functions are cost savings and the need to focus on core business functions. Most organizations ensure HRO success by evaluating their HRO service providers (HROSP) and monitoring service contracts. Despite these efforts, some of the organizations indicated that at some point, they had to either change HROSP or cancel HRO contracts bringing HR functions back in-house, as a result of poor service levels and/or unpredictable costs.