The effect of cost reduction and business strategy on human resource outsourcing practicing: A study of Malaysian government link company

Human Resource Outsourcing (HRO) has grown popularly since early 1990s, particularly in the USA and Europe. It is up to 90% of the companies outsource some HR activities and becoming a new engine of growth to the organization. Despite, many studies conducted on these issue however the study is still inconsistency and vague. Hence, the aim of study is to analyze the effect of cost reduction and business strategy on human resource outsourcing practicing in Malaysian Government Link Companies (GLCs). Meanwhile, the objectives of the current study are to analyze the relationship between cost reduction and business strategy towards human resource outsourcing practicing. The study also will propose the theoretical framework on human resource outsourcing implications. To achieve those objectives the critical reviews made based on previous studies. The results of the study may provide a systematic guideline and caution to the Malaysian Government in human resource outsourcing effects. It also serves as guideline to the government in formulating of manpower policy particularly in Malaysia GLCs.