Reasons & Risks of HR Outsourcing

HR BPO means HR Business Process Outsourcing. It sounds simple, but in many cases, it is not. HR activities are diverse, from onboarding to development, from performance management to payroll administration, from promotions to termination of employment. Most organizations use external parties for some of their HR activities. However, not every external partner is a BPO partner.

Here, we take the most far-reaching form of outsourcing as our point of view: outsourcing the actual ‘result responsibility’ for certain HR services. In such a partnership, the BPO partner is responsible for “the HOW, the WHERE and the WHO” of the HR services. The outsourcing organization focuses on managing the contract (“the WHAT”), the objectives of the BPO partnership and the result agreements.

This article discusses the reasons for, and risks associated with HR BPO. Additionally, we look ahead to future developments in BPO. 

Link to HR BPO whitepaper