An overview of HR outsourcing, its use within organisations and its alternatives
Outsourcing to an external provider can offer benefits, such as increased efficiency and access to expertise. But it can also present challenges, such as loss of in-house knowledge and processes, and fragmented HR services. Payroll is the most commonly outsourced HR activity, followed by providing advice on specialist topics.
This factsheet introduces HR outsourcing and its use by organisations. It outlines some of the alternatives to outsourcing, such as shared services, employee self-service, and buying-in consultancy services. It highlights the need to consider the business case, and the questions to ask, when deciding whether outsourcing is appropriate. Finally, the factsheet offers guidance on selecting a provider and what to consider when managing the move from in-house to a third-party service.
Affiliate membership offers instant access to CIPD resources without the need for assessments or study, or explore your options to become a professional member of the CIPD to demonstrate your commitment to the world of work.
Already a member? Login here.
Listen to episodes of HR People Pod, the CIPD’s fortnightly podcast providing expert insights from HR leaders discussing the topical issues impacting the world of work.
Listen nowAI is moving from experimentation to everyday infrastructure. For HR teams, that shift brings a practical question: how do we make productivity gains while protecting the conditions for good work — fairness, capability, sustainable performance and employee trust?
Listen to episodes from our CIPD Ireland Podcast Series on a range of topical workplace, HR and L&D issues
Listen nowGuidance on how to manage the impact AI-driven change is having on human skills; the key concepts and challenges, and a structure for responding to the profound impact of AI on human skills
Find out what's meant by fair pay, what pay information UK employers must disclose by law and the opportunities pay narratives bring.
Outlines the role of occupational health services in an organisation and the role of confidentiality and consent in discussing an employee’s health
Facts on the recruitment and resourcing process; from defining the role to making the appointment
Explores the benefits of flexible working, the types of arrangements commonly used and gives practical tips on implementing flexible working practices