Acta Universitatis Danubius. Administratio, Vol 4, No 2 (2012)

Abstract

This paper presents the findings of the benefits and dangers of outsourcing in an emerging economy using hr managers selected public and private sectors as case studies. The aim of the study was to determine the impact of outsourcing on the employees. The findings suggested that although it has positive outcomes in achievement of organizational goals, employees are weakened by the negative impact of outsourcing as it increases job insecurity, demotivation in the organisation. The significance of the study was to highlight the impact of outsourcing on employees and its relation with management although there’s not much empirical evidence, this paper thus addresses this issue. It is hoped that this study would add to knowledge, create awareness, refine the existing practices in the organisation and change the attitudes of employees for better performance and organizational success.