Contracting external providers to deliver HR functions on behalf of a business.
HR outsourcing (HRO) involves delegating some or all HR functions to an external service provider. Commonly outsourced HR functions include payroll processing, recruitment (RPO), benefits administration, and HR compliance. Organizations outsource HR to reduce costs, access specialist expertise, and scale HR capacity without hiring. Partial outsourcing (outsourcing specific functions) is more common than full HR outsourcing. HR software platforms enable seamless data sharing between in-house teams and outsourced providers.
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