What if you could reduce employment costs by 70%?

Business process outsourcing (BPO) is outsourcing part of your business functions to external service providers. The outsourced functions are generally non-core aspects of the business, such as accounting or human resources management. BPO helps to free up businesses time so they can focus on business strategy and main objectives, helping them become more competitive in their markets.

Outsourcing also helps companies save money and time. The outsourced operations can be as broad as a company’s human resources administrative tasks or as specific as a single function, such as payroll processing. Outsourced processes often rely on technology, so BPO is sometimes referred to as information technology-enabled services (ITES).

In this article, you will learn about the evolution, functions, benefits, and challenges of business process outsourcing. We'll discuss BPO for human resources functions and list the primary types. We will also look at when you should consider outsourcing HR, the costs of HR BPO and how to choose an HR BPO vendor.

“What was even more attractive about TriNet is that it really allowed me as the HR leader to really develop engagement for our employees, talent attraction and retention, because we now had a suite of benefits that normally wouldn't be available to employees at a company of our size.”

Gretchen Crist

Chief People & Culture Officer

Pet Honesty 

Small and medium-sized businesses often struggle to manage their HR functions. These essential functions can be time-consuming and often require a level of expertise that smaller businesses may not have in-house. Getting it wrong is not an option. The potential consequences may include demands, penalties, fines, and potential negative reputation that may cause the inability to attract or retain the top talent you need.

Certain problems and difficulties tend to crop up when businesses don't have the HR support they need. It's important to realize that a wide range of HR service delivery solutions are available.

HR outsourcing is one of the most popular HR trends. When you outsource to an HR outsourcing third-party provider, they provide support to help with your HR functions. The provider generally specializes in helping with HR functions for other companies. Its HR professionals are usually experts in the HR area, and their technology is usually up to date. You could opt for outsourcing payroll processing, outsourcing a few major HR functions, or signing up with a professional employer organization (PEO) for a more comprehensive HR outsourcing help with your HR responsibilities including access to HR software. 

In this article, we'll answer a key question in the evolution of a business: When should I outsource HR? We also will provide outsourcing tips and discuss which functions are commonly outsourced, as well as reviewing common outsourcing options and HR best practices for outsourcing.

“For me, how TriNet helps me as a CEO is really helping me sleep better at night because I know that payroll and benefits, compliance are all taken care of.”

Eileen Spitalny

Founder & Co-owner

Fairytale Brownies

Many small and medium-sized businesses struggle to carry out their human resources (HR) functions. Some lack the budget for HR staff. Some find that their organizational needs go beyond what their HR team can handle.

To solve these and many other problems, businesses often turn to an administrative services organization, or ASO. An ASO is a business that provides HR outsourcing options for other businesses. ASOs typically can help with most of a client's HR administrative work, like:

• Payroll processing.
• Employee benefits administration.
• HR software solutions, support and consulting.
• Payroll tax compliance.
• Performance management.
• Onboarding and offboarding tools.