Hudson says Dartford Borough Council to become the first in the UK to outsource its entire HR and payroll function will have possible implications for HR.

Anthony Pierce, associate director for London HR at Hudson, believes this will be the start of a major trend "Moves like this will become the norm, as councils seek to save money in a tougher economic climate. Outsourcing the HR function will inevitably cut costs. By involving a wider range of people, with different skills and backgrounds, another potential benefit is a greater breadth of service - so long as the outsourcing company proactively seeks ways to add value," he says.

"However, a valid concern with this move is that it could, in some quarters, be seen as a retrograde step, following years of campaigning from the industry for HR to be taken seriously at board level. Will outsourcing the entire function mean that HR will no longer be involved in the organisation's decision-making processes? What we don't want to see is HR relegated to a mere support function, as this would go against all the legitimate claims that HR has to be involved with strategic business decisions at board-level - it's important the industry debates these topics openly."

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