HR Outsourcing refers to the process by which companies use external providers to manage or maintain the Human Resources (HR) function of their business. As companies have had to reduce costs to remain profitable we have seen more and more outsourcing of HR functions to outside vendors. This practice of being increasingly dependant on Human Resources outsourcing has brought the creation of a number of companies that specialize in HR outsourcing services. These specialty service companies handle all aspects of the HR process from recruiting to benefits administration and planning. They can also provide reports and handle employee records.

For companies, there are often many advantages to HR outsourcing, including possible reduction in cost, improved efficiency, and the additional of outside expertise that a company may not have, or be able to build, internally. As always, if you are considering outsourcing for your company, be sure to research the various outsourcing vendors available to make sure you find one that fits your needs.