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Human Resource outsourcing is considered an important factor in todays business world.It is constantly growing, especially in the global world where companies outsource not just within their country but across borders.But there are many kind of risks in Human Resource Outsourcing in China, Human resource outsourcing as a kind of new service industry is at the initial stage and there are no norms to be followed for the provided services, which lead to outsourcing enterprises, face many potential risks in the process of human resource outsourcing. In order to improve the effect of HRO, It is very important to study how to control the risk in HRO.This research concentrates on the risk of outsourcing Human Resource activities in China. The ultimate aim of this research is to find out the risk in outsourcing human resource activitiesin Chinese enterprises.
The results revealed that companies do not outsource all of their Human Resource functions.Recruitment is the key function outsourced for the simple reason of convenience and time saving. However, benefits are enormous including cost effectiveness, achieving higher core competency levels, greater flexibility and accessibility to expertise, reducing workload of staff etc.Results also depict two categories of outsourced staff, which are temporary staff and permanent staff with temporary staff being the majority. During the study it was also noted that the outsourcing agencies do not have full control over the process, the organizations also take part to perform and gives them part to perform.