Assessing Human Resource Management Outsourcing: the Case of Holland Dairy Ethiopia

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Addis Ababa University


Human resource outsourcing provides businesses access to high-quality human capital from outside sources at reduced costs. This allows firms to devote fewer organizational resources to staffing and more to core operations and competence-building programs. Concerning this, limited research has been conducted on HRM outsourcing function and Most of the empirical studies that has been mentioned were failed to properly assess the ability to access knowledge, technology, and industry best practices that may not be accessible internally can be gained by outsourcing HR operations to a specialist vendor. This study aims to answer the following research question: what the HRM outsourcing practice in Holland Dairy Ethiopia is, what are the existing challenges in implementing HR outsourcing services in the company and what are the opportunities for practicing HR outsourcing in the company. Therefore, to answer this question the study used census method and descriptive survey design to collect data and to address the research questions, 85 questionnaires were prepared and distributed out of these questionnaires 72 were filled and returned. Accordingly, the result of the study showed that, there is HRM outsourcing function in none-core activities of the company. Also, there is moderate opportunities and more challenges of outsourcing human resource management function in Holland Dairy company Hence, most of the respondents were suggesting neutral to those questions. As a recommendation the company should develop outsourcing HRM function in their core areas of HRM service, further, when the company outsourced the HRM function must focus on the area that the company established site and the employee culture to avoid language and culture barriers



Human resource management, outsourcing