| Summary: | Human Resource Outsourcing (HRO) has grown
popularly since early 1990s, particularly in the USA and Europe.
It is up to 90% of the companies outsource some HR activities
and becoming a new engine of growth to the organization.
Despite, many studies conducted on these issue however the study
is still inconsistency and vague. Hence, the aim of study is to
analyze the effect of cost reduction and business strategy on
human resource outsourcing practicing in Malaysian
Government Link Companies (GLCs). Meanwhile, the objectives
of the current study are to analyze the relationship between cost
reduction and business strategy towards human resource
outsourcing practicing. The study also will propose the
theoretical framework on human resource outsourcing
implications. To achieve those objectives the critical reviews
made based on previous studies. The results of the study may
provide a systematic guideline and caution to the Malaysian
Government in human resource outsourcing effects. It also serves
as guideline to the government in formulating of manpower
policy particularly in Malaysia GLCs
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