Human Resource Outsourcing as a Strategic Tool for Rightsizing Manpower in Government Undertakings in India

Authors:
Sujit Kumar Acharya, Sri Surendra Kumar Sahoo, Sulochana Dash, Kartik Chandra Das, Joseph Evans Agolla

Addresses:
Department of Business Studies, Directorate of Distance and Continuing Education (DDCE), Utkal University, Khordha, Odisha, India. PG Department of Business Administration, Utkal University, Khordha, Odisha, India. Department of Personnel Management and Industrial Relations, Utkal University, Khordha, Odisha, India. School of Business and Management Studies, Botswana Open University, Gaborone, Botswana.

Abstract:

Human assets are the central resources that convert all of the resources into productive resources. Human resources add value, while all other resources add cost. After the COVID-19 pandemic, most organizations have reduced their workforce without compromising the quality or quantity of their output. Concepts such as work-from-home and Human Resource Outsourcing (HRO) were implemented by both the government and the private sectors. The introduction of an outsourced workforce requires effective workforce planning, motivation, organizational development, dynamic leadership, and changes in organizational policies and practices. The present paper analyzes the above parameters based on responses from 97 personnel working in the state government sectors of Odisha, India. The responses were collected through a questionnaire. The prime objectives of the research work are to identify the positive and negative aspects of HRO, its challenges, and the ROI. Various statistical tools, such as ANOVA and t-tests, were used for data analysis. The paper highlighted issues in acquiring external expertise, enhancing product and service quality, focusing on core business, and realizing cost-saving opportunities. The research concluded that departments should manage outsourced employees and increase their commitment to completing assigned tasks.

Keywords: Human Resource Outsourcing; Organizational Development; Manpower Adjustment; Data Analysis; Productive Resources; Government Sectors; Outsourced Employees.

Received on: 20/02/2025, Revised on: 25/05/2025, Accepted on: 08/08/2025, Published on: 12/03/2026

DOI: 10.69888/FTSSSL.2026.000584

FMDB Transactions on Sustainable Social Sciences Letters , 2026 Vol. 4 No. 1, Pages: 19-27

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