Impact of Cost Efficacy and Innovative Practices on Human Resource Outsourcing

Abstract

In the contemporary age of global business, human resources outsourcing has received enormous attention. The academic research on this area in the context of Bangladesh was scanty despite a good number of private sector organization are doing outsourcing. Following this lead, the prime thrust of this research was to evaluate the relationship between HR cost efficacy, innovative HRM practices and human resources outsourcing and impact under the lens of transactional cost of economy and RBV theory. The judgmental purposive sampling method was applied to set sample and close ended questionnaire was employed to collect primary data from 115 respondents of private sector of Bangladesh. The partial least square based structural equation modeling was used to attain the objectives and the SMART PLS 4.0 used to analyse data. The exciting findings concluded that there was a strong association between HR cost efficacy, innovative HRM practices and human resources outsourcing and significant impact between the latent variables. Finally, implications and future directions were articulated for the practitioners, readers, and  stakeholders.