Outsourcing of HR transactions is a proven way to reduce costs and get access to a higher level of service.

Here are some of the reasons why companies outsource their HR services:

1. Cost reduction – economies of scale, automation and process improvement, especially for transactional work.

2. Benefits – the ability to offer cost effective and comprehensive benefits to employees.

3. Focus – allows HR to allocate time to strategic, not transactional, concerns.

4. Regulatory compliance – minimize or transfer legal risk to the outsourcer and obtain specialized regulatory expertise.

5. Access to best technologies –ensures that technology is continually upgraded.

6. No available internal resources – provides an HR capability for a company that does not have one, cannot staff it, or cannot afford a full-time resource, but has reached a size and complexity where expertise is required.