LITERATURE REVIEWOUTSOURCING: Outsourcing is a strategic activity in which some of the internal activities of the organization are delegated to external companies for various reasons such as: - To better target the organization - To exercise greater control over operating costs - To obtain greater flexibility in defining the required service readily available - To maintain the same level of competence over a period of timeUsually, companies to which the activities are under- processed are specialized in their field of work and therefore the parent company has the advantage of getting the job done through competent employees. Therefore, outsourcing gives businesses a competitive edge that they can easily maintain without much effort. ADVANTAGES: Reduced expenses: Since outsourcing companies are specialized companies, they carry out their activities better, cheaper and faster than companies that carry out these activities in-house. Cost reductions can also be achieved by combining activities. Specialist knowledge and expertise can be provided by outsourcing companies, eliminating the need to keep this knowledge in-house where it can only be used occasionally. Saves management time and effort: Management can spend their time and effort on transactional tasks and focus on the core competencies that set the organization apart from its competitors. Repetitive problems become the responsibility of the outsourcing company by keeping internal management involvement to a minimum. Increased organizational skills: With the reduction in time spent on daily transactional tasks, more time and effort can be devoted to transformation activities. that directly support core competency...... middle of paper ......tsuccessfully sourced.Level 6: Highly Confidential Activities (HCA)Secrecy is required in the performance of certain human resource management activities . Layoffs, plant closures and restructuring are examples of activities that must remain confidential. These types of activities obviously have much lower potential for outsourcing than those that do not require secrecy or confidentiality. Level 7: Management decision activities (MDA) Certain human resources management activities require direct and specific involvement from the top level. management. The structure of the human resources department or the direction the human resources function should take are examples of activities that require direction from senior management. There is little opportunity to outsource decisions that need to be made by the executive level of management of an organization..