Project Management Essay Example | Topics and Well Written Essays - 1250 words - 8

Project Management - Essay ExampleLiterature has suggested a amount of benefits which can be achieved by outsourcing the payroll system. Majorly, it is considered to outsource in order to achieve the cost reduction benefits, where the exceptional contractors performance and its inexpensive structure can reduce the cost directly, as well as it converted the fixed cost into the variable costs and also by sour the in-house staff (Seth & Sethi, 2011). Other indirect benefits resulting in the cost reductions are increasing efficiency by more focus on main business operations, employee store with specialized programs designed strategically by vendor, bettered the risk management, and also minimizing the firms politics (Turnbull, 2002 Rubery, Cooke, Marchington, & Earnshaw, 2003).The outsourcing Payroll system has some other benefits resulting in tax enhancements. The direct revenue enhancement occurs through more cash generation and savings, which is achieved by transferring the asset s needed to manage payroll towards the vendor, so it lowers the investment and make the resources acquirable for further purposes (Seth & Sethi, 2011). While it also increases the revenues indirectly by improving customer services and satisfaction resulting in increased sales, gaining more contacts through vendor PR, locomote up, expansion, legal compliance and also by accessing the advanced technology through vendors specialized services (Adler, 2003). On the other hand, there is little evidence prepare in literature to realize these benefits. As (Dickmann & Tyson, 2005) has argued that there are more costs incurred while outsourcing the payroll system due to more transaction costs. Additionally, agree to (Mellewigt, Madhok, & Weibel, 2007), there is an ethical issue of payroll outsourcing, which is the critical employee information security breaches. Moreover, the lower control over HR functions,