Abstract:
In today's increasingly competitive environment, the benefits of high organizational
performance are becoming progressively more important. Organizations worldwide are
increasingly adopting human resource outsourcing (HRO) practices, most importantly to
reduce cost, transferring focus to achievement of business goals, capitalize on scale
economies, transferring risk and liability for people issues and for strategic integration of
Human Resource department. There is a scarcity of research on the impact of an
organization's outsourcing operations notwithstanding the fact that Organizational Strategy
(OS) has been investigated from a variety of angles. The intent of this research was to check
the role of OS as moderator in the connection between HRO and OP within Pakistani service
sector firms. A descriptive research design based on a positivist methodology was employed.
230 businesses were selected using random chance and surveyed using a questionnaire. The
data were then examined by means of the Smart PLS software (3.3.3) and the structural
equation modelling (SEM) technique. The outcomes of research demonstrate a substantial
positive association amongst HRO - OP. Moreover, results recognized the moderating role of
the OS between HRO and OP relationship midst service firms. This study is significant in the
relevant literature as it has made an effort to look at the relationship between HRO and OP
from a different lens.
