Human Resources Outsourcing: an Opportunity or a Risk

candidates looking for job

Human Resource Outsourcing has almost become a fad. The small and medium business houses around the globe find it a sensible decision to outsource all the activities related to HR. The tasks like deciding the pay rolls, benefits, compensations, may look like some easy to do tasks. And in fact these activities also do not bring direct revenue to the owner of the business house but still performing these tasks is as important as hiring an IT engineer for an office replete with computers. 

Advantages of HR outsourcing

Outsourcing the HR services is very beneficial especially for those business houses that want to hire a potpourri of staff comprising of remote workers, consultants, temporary and permanent employees, contractors, etc. Since an outsourcing company provides HR services to plethora of other companies too, the outsourcing company is not short of all sorts of HR professionals who can select the right candidate for the client company.

Not every corporate house can afford an in-house HR department when the priority is hiring enough manpower in other departments. And having an in-house HR team is quiet expensive. This is the reason why many prefer outsourcing the HR services that would let the business owner focus all his or her attention on the goals and profits while all the HR activities would be taken care of by a team slumping somewhere far away.


The bliss can turn into a nightmare if you choose a wrong outsourcing company. Many experienced and sagacious entrepreneurs say it involves its own set of risks as one is buying the HR services from an outside firm and has no direct control over the HR team. So, one should have tried managing the HR activities oneself for his or her business? so that he or she could understand what? are the actual HR requirements for his or her business.

Many organizations turn apprehensive before sharing any private data with any outside company as it's not safe. In short, there are credibility issues involved.? There are dangers of getting hoodwinked by a fraud company.

The grass is also not greener on the other side. Under the pressure to win the trust of the client business house, many times the outsourcing firms request the candidates looking for job to complete the online form with details such as marks obtained in educational institutes, and attach a scanned copy of the ID card, age proof and so on. And many times the candidates get annoyed with such verifications before the interview, and they drop the plan to apply for job in the same company.

So, before deciding whether you should or should not get the HR services outsourced, take above points into consideration. Hope it helps!


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