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Outsourcing - A Hot Item

By Elizabeth Rice, SPHR

Trends change in business on almost a daily basis. One trend that many companies are turning toward is outsourcing. Have you considered outsourcing any portion of your human resources function? Many companies are evaluating this as an option. Companies are not necessarily eliminating their entire human resources department. They may choose to outsource payroll. Or perhaps they also may decide to outsource benefits administration - particularly if they have flex plan or any type of benefit plan that takes a lot of time to administer. Why are so many companies outsourcing? Two of the most popular functions that are being outsourced today are human resources and information technology.

The following list is the top reasons companies outsource:

• 36%...Focus on Core Business
• 36%...Reduce Costs
• 13%...Improve Quality
• 10%...Increase Speed to Market
• 4%...Foster Innovation
• 1%...Conserve Capital

Increased Efficiency. Outsourcing has long been seen as a way to increase the efficiency of an organization. Outsourcing allows companies to focus on their primary business product or service, rather than hassling with day-to-day administrative burdens.

Cost Savings. Outsourcing permits your company to minimize costly staff additions. You can keep a lean headcount, while still having access to the expertise of qualified professionals.

Quality and Innovation. Outsourcing vendors provide companies innovation and change. The best providers stay current with new trends and technology.