Human Resources Outsourced

The perpetration of technology and computers into almost every aspect of our day to day lives is one of the main reasons for the increase in the outsourcing of human resource functions. This, coupled with the fact that global economy is slowing down and the number of layoffs are increasing, has led research firm Gartner Dataquest to predict that the human resources outsourcing market will climb to $26.3 billion in 2007, in an increase of nearly $4 billion over a three-year period.

A 2004 survey by the Society for Human Resource Management has listed background checks, employee assistance programs, flexible spending account management, payroll, and administration of health and pension benefits as some of the most frequently outsourced functions. Nearly 300 human resource professionals surveyed were in accord when they listed reduction of costs, control of legal risks, access to vendor expertise, and the streamlining of human resources functions as major reasons for outsourcing human resources.