Rethinking Outsourced HR Consulting Services in Industry 4.0: Evidence from Existing Studies

Abstract

The evolution of Industry 4.0—characterized by the integration of technologies such as artificial intelligence (AI), big data analytics, and automation—has driven a significant transformation in human resource (HR) management practices. Traditionally, outsourced HR consulting has been instrumental in providing organizations with specialized expertise and operational efficiency. However, in the digital age, many of these functions can now be automated or managed internally using advanced HR technologies. This article reexamines the continued relevance of outsourced HR consulting services through the lens of the Resource-Based View (RBV) theory, which highlights the strategic importance of internal capabilities. The analysis suggests that while outsourcing remains valuable for certain specialized functions, the increasing demand for tailored, technology-driven HR solutions prompts organizations to reassess their outsourcing strategies. A hybrid approach—combining external expertise with the development of internal capabilities—is emerging as a strategic and competitive response in the Industry 4.0 environment.