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Human Resource Outsourcing
There are many ways in which outsourcing human resources can be done :-
Business process HR outsourcing (also known as BPO), where an external supplier manages discrete HR activities, such as payroll administration or recruitment, or perhaps the whole human resources function.

Shared service HR outsourcing, where only the transaction or administrative elements of HR's activities are subcontracted to an external supplier. This may include the personal interface with employees.

Application (and facilities) service HR outsourcing, where external providers look after the technological (and physical) infrastructure to support human resources activities.

Potential benefits of HR outsourcing :-
  • Reduced cost
  • Increased efficiency
  • Access to improved HR IT systems
  • Improved management information (including human capital metrics)
  • Access to HR expertise not available internally
  • Increased flexibility and speed of response
  • Philosophical reasons
    (for example the organisation is outsourcing a number of its support functions, of which HR is just one part)
  • Reduced risk
  • To free HR resources to operate more strategically
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