The paper aims at investigating on how HR outsourcing could be optimized by
leveraging on different types of business strategy and the impact on human
resource performance. Four types of business strategy, namely: quality-based,
proactive, breadth and reactive were employed to test their influence on HR
outsourcing. The data was gathered from survey questionnaire (232) on
manufacturing organizations. The findings suggest that HR outsourcing was
effective by espousing reactive business strategy. In fact, by relying on human
resource outsourcing, the organizations manage to experience higher human
resource performance. This study adds to the literature by providing information
on HR outsourcing and business strategy.
