Companies of all sizes and industries are outsourcing parts of their HR business processes in record numbers to effect improvements in efficiency, service and cost. Vendors are driving this shift away from the traditional HR service delivery model with promises of increased access to better technology and systems, at a reduced cost, in conjunction with improved levels of quality and service to the customer. Between the dynamic challenges employers face and the intense competitive pressures in the vendor community, it would appear that HR outsourcing (HRO) has, in fact, evolved to give employers more choice and an increasingly flexible, creative and comprehensive menu of services.

This article explores some of the reasons behind the transformation of the HRO industry. It then provides information to help HR business leaders make informed choices regarding HRO options as a means to reap professional experience in relation to HRO and strategic value for their organizations.

This article is a reprint from the September 2005 issue of HR Magazine