ROLE OF HR OUTSOURCING IN ENHANCING ORGANIZATIONAL EFFICIENCY: INSIGHTS FROM VISAKHAPATNAM PORT AUTHORITY
Abstract
Purpose: The purpose of this study is to examine how HR outsourcing contributes to organizational efficiency within the Visakhapatnam Port Authority. It aims to assess the influence of various outsourced HR practices such as recruitment, payroll, HRIS, performance management, and employee welfare services on efficiency indicators. The study also seeks to identify the major challenges and risks associated with HR outsourcing in a public-sector port environment.
Methodology: The study employed a descriptive and analytical research design using primary data collected from HR managers through a structured questionnaire. Exploratory Factor Analysis (EFA) was used to identify key risk dimensions associated with HR outsourcing. Structural Equation Modeling (SEM) was then applied to evaluate the direct and indirect effects of HR outsourcing on organizational efficiency.
Findings: The findings reveal that HR outsourcing significantly enhances organizational efficiency by improving operational processes, reducing administrative burdens, and supporting better service delivery. Key HR functions such as HRIS and recruitment outsourcing were found to be highly influential in strengthening HR operations. The study also identified operational, regulatory, and communication-related risks that accompany outsourcing practices.
Conclusion: The study concludes that HR outsourcing plays a meaningful role in improving organizational efficiency when effectively aligned with internal systems and supported by strong oversight mechanisms. Although outsourcing introduces certain risks, these can be managed through robust vendor coordination, compliance monitoring, and communication channels. The results emphasize the importance of adopting a structured outsourcing strategy to maximize operational benefits. Overall, the study supports the acceptance of the alternative hypotheses and confirms the significant relationship between HR outsourcing and organizational efficiency.
