Employment trends, outsourcing, transaction cost theory, work flexibility


Issues in Business Management and Economics

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Iheriohanma, E.B.J
Austin-Egole, Ifeyinwa Stella

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Original Research Article

Outsourcing and employment trends: An exploratory discourse

1Iheriohanma, E.B.J and 1*Austin-Egole, Ifeyinwa Stella

1Directorate of General Studies, Federal University of Technology, Owerri, Nigeria

*Corresponding Author Email: ifyegole(at)yahoo.com

Iheriohanma, E.B.J

Austin-Egole, Ifeyinwa Stella

Article Number: IBME.20.005  |   Pages: 48-56  |   Vol. 8 (3), September 2020   |   DOI: https://doi.org/10.15739/IBME.20.005

 Received: May 15, 2020  Accepted: July 30, 2020  Published: August 27, 2020


Outsourcing can be said to be the response of organisations to the costs and disadvantages of the traditional work arrangement. In recent times, as organisations seek strategies to enable them focus on their core businesses in the bid to gain competitive advantage as well as reduce transaction costs to the barest minimum, they use outsourced workers as flexible buffer to absorb changes in employment trends. Contemporary employment trends involve work flexibility (which enables workers to choose where, when and how they want to work) and are facilitated by advancement in technology. This paper seeks to find out the effects of outsourcing on employment trends and vice versa. The study is a library research involving analytical discussion of secondary data. The study observes that a major strategy used by organisations to mitigate the negative effects resulting from new trends in employment and application of technology includes work flexibility and outsourcing policy of organizations. With the aid of technology, this makes it possible for organisations to beat the employee work skill deterioration and specific shortage through outsourcing while still saving cost and performing optimally. It is recommended that there is need to put policiesin place to cushion the negative effects of losses of firm-specific human capital provisions resulting from work flexibility and outsourcing.


Employment trends, outsourcing, transaction cost theory, work flexibility

How to Cite this Article

Iheriohanma EBJ, Austin-Egole IS(2020).Outsourcing and employment trends: An exploratory discourse. Issues Bus. Manag. Econ. 8(3):48-56.

Author(s) retain the copyright of this article. Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.

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