- HR Outsourcing is the process of sub-contracting human resources functions to an external supplier. 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.
