Community » HR Forums » Human Resources » HR Outsourcing» HR Outsourcing - What to Outsource and What Not ?
HR Outsourcing - What to Outsource and What Not ?

Last post October 17, 2019 12:04 PM by debora. 1 repiles.

November 20, 2007 01:59 AM 1
Total Posts: 34
Join Date: October 15, 2007
Rank: Executive
Post Date: October 17, 2019
Posts: 34
Location: United States

HR Outsourcing - What to Outsource and What Not ?

Dear All,

There are many HR domains that can be outsourced now other than clerical work of payroll, etc.

But should we outsource domains like induction, PMS, Retention, Exit Interviews, etc....??

March 1, 2009 02:352
Total Posts: 21
Join Date: October 15, 2007
Rank: Executive
Post Date: March 1, 2009
Points: 105
Location: United States

Re: HR Outsourcing - What to Outsource and What Not ?

Hi jac,

According to me we can outsource few more functions of HR apart from clerical work. Please find below my reasons for outsourcing the following functions.

1. Induction: Are companies really interested in induction. Normally companies take around 20 - 30 days after joining of an employee to schedule a BIG induction program. But what about so many questions that employee has on day one and two. Is there anyone who can help the employee.

I think , companies should outsource something which is not complete Induction but yes, FDHD that is First Day Help Desk. Companies can have outsource partners who can give a personal touch to this FDHD. Though this is not like completely outsourcing the induction function, but yes it will be a little more than that.

2. Exit Interviews : I think 90% of the employee never say truth during their ext interviews. If this function is outsourced. Employees can be much more forth coming and frank in letting you know the reasons of the exit. This outcome of this exit interview should be shared with the HR department and the Management of the organisation, so that corrective actions can be taken care of.

Companies should outsource this work, but only for reaping advantage of this outsourcing. This outsourcing will not only help companies in cost advantage but also, if companies act on the findings of these outsourcing functions. and take corrective actions, the organisations and employees will understand each other better.



March 1, 2009 02:413
Total Posts: 22
Join Date: October 15, 2007
Rank: Executive
Post Date: March 1, 2009
Points: 110
Location: United States

Re: HR Outsourcing - What to Outsource and What Not ?

The very purpose of having HR would get lost if one outsources the induction and exit pieces. The former is an ice-breaker between the employee and employer and the later is important vehicle to recieve inputs on internal change requirements. It not only the checklist and process that is important but, the way it is handled. According to me individual comfort lies when these are done in-house.

Only thing we might achieve by doing what you suggest is to add some revenue to bottomline. Which to me is insignificant when compared to its motivational value.

Best regards,


March 2, 2009 03:334
Total Posts: 8
Join Date: October 15, 2007
Rank: Beginner
Post Date: March 2, 2009
Points: 40
Location: United States

Re: HR Outsourcing - What to Outsource and What Not ?

I agree with Vikas and would like to disagree with Adroit.  There are so many things an HR can do for an organisation other than the Induction and Exit formalities. 

An HR will still have been left with following activities, if the above two are outsourced:

Selection (Hiring),
Training need identification, 
Career / Succession Planning, 
Maintaining HRIS, 
Formulating Policies, 
Employee engagement activities,
Performance Management,  
Reward and Recognition programmes, etc.

The reasoning given by Vikas seems logical and will surely leave HR executives with much more to explore and do in the interest of the organisation.

For me, the payroll which is generally outsourced to save time is in fact consumes more of that.  The Agency often falters in making correct payment and deductions and then the HR persons have to spend time in finding reasons and rectification.  Therefore, Payroll, however non-value added this activity may seem, should be internally sourced.

Would like to have your opinion.

Prashant Das


October 17, 2019 12:045
Total Posts: 108
Join Date: October 15, 2007
Rank: Leader
Post Date: October 17, 2019
Points: 540
Location: United States

Re: HR Outsourcing - What to Outsource and What Not ?

Search Engine Optimization

Outsource search engine optimization tasks. An seo expert will be able to improve your company's website, social media profiles and content to improve its rankings in various types of searches. And, they have skills your internal IT department lacks. It is also cheaper to hire outsourcing experts when required instead of keeping one expert on hand while trying to keep them busy enough to justify their pay.

Social Media

Social media should be outsourced to experts, and we're not talking about your intern who happens to have multiple social media accounts. A social media firm knows how to design social media profiles consistently across every platform while capitalizing on the strengths of each. They have people who post content across these sites daily, and they know how to add the right hash tags and when to post to generate the most views of the shared content.

Website Design and Maintenance

While there are a number of reasons not to outsource your core IT functions like user account maintenance and database management, website design and maintenance is an excellent choice for outsourcing. A website design is best left to the experts, and website hosting and maintenance is ideally outsourced. By outsourcing the website hosting and maintenance, you let your IT department focus on mission critical software while letting IT security experts protect your web portal along with everyone else's.

Payroll and Taxes

Bookkeepers have been tracking accounts receivable, generating invoices and handling payroll for small businesses for years. The outsourcing of these functions has thus been common for small businesses, and the internet and software specifically to support this type of outsourcing makes it possible for large businesses. Let payroll management firms handle 401K loans, payday loans, child support collection notices and other issues that would otherwise drown your Human Resources department. Some companies outsource the entire hiring process up to the point someone is on boarded, though most companies still want to review and approve applicants.

Termination Management

Hiring someone outside the organization for layoffs or firing prominent personnel may be done to save the remaining management the stress, but this job should not be outsourced. First, it tells your employees that you don't care about those who are losing their jobs. Second, it interferes with the hard conversations that often take place as part of the exit interview. What is killing your organization? What problems will this be the last time you'd be able to learn about? Third, it hurts morale of those who remain. Fourth, it makes your employees afraid of any future management consultant being brought in.

Employee Development

Employee development is a very personal matter specific to your company and might be close to impossible to outsource depending on the nature of your business. Outsourcing this function might be problematic since your employees may end up acquiring general skills that are not necessarily in line with your business's philosophy and objectives. Industry best practices may help to a certain extent, but at the end of the day, only you truly know your employees. If you're struggling with some of the most technical aspects of employee development, there are plenty of training courses and online learning options that could help you with the fundamentals.

Performance Management

Performance management is another very personal aspect of your business that needs a hands on approach. However, in this case, the help of a third party may actually be beneficial. It has been shown that employee performance is greatly increased when employees' personal goals and the company's overall strategy are closely intertwined. But annual reports tend to give only an historical review and are not always a clear indication that the individual objective and performance of employees is directly in line with the company's goals and objectives.

In this case, hiring a third party consultant might be a good option to get a second perspective. The key goals of the CEO should be distilled and trickle down every part of the control chain, all the way down to each and every employee of the company. In some cases, this can only be done using advanced analytics and state of the art systems and processes which may not be mastered by every business owner.


Security is something you should think twice about outsourcing. Hiring a security company to provide basic security guards is practical, but if you have concerns about theft or violence, you should have internal security measures as well. Your data security is something you should keep in house, though it may be backed up by regular external IT security audits, since your company is entirely liable for data breaches. It is also in your interest to maintain your own processes to control access to confidential business data, so that someone at a third party firm cannot steal or leak it.

Succession Planning

Succession planning is an internal matter that is essential to the survival of your company. While you might outsource employee recruitment for the lower levels of the organization chart, succession planning for business owners or the board is best handled in house. Consult with legal experts as required, but the final decision must be your own.


When choosing which options you should outsource, you should go with IT functions that are not essential to the day to day operations of your business such as search engine optimization, social media, website design and web hosting. You should consider outsourcing payroll and taxes, but not all HR functions. Termination management and succession planning should be kept internal. Security is an area where you should consider supplementing your own talent with third parties.