Line HRD

There is a school of thought which believes that routine tasks of the HR should be outsourced but HRD dept. should concentrate on more strategic issues like profitability of the organisation in the long run and growth issues. This according to them can be achieved by making HR more accountable to key results. Proper care should be taken to annoint a proper achievement oriented line personlaity with Aura and charisma into the head HR position. But what are the issues involved. How does the performance appraisal gets takes care of? Who sets the goals? There would clearly be a conflict between th eline and HR depts. There is also a duality of command and its inherent accompaniments.
"Does some one disagree".