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Outsourcing Articles >> HR Outsourcing Company

The task of a HR outsourcing company is to provide high potential personnel for short term projects with compatible payroll package to curb company costs and keep the headcount down. HR outsourcing company understands the needs for business efficiency by getting a short project done, the reason why HR outsourcing will play an important role in the coming days.

An HR outsourcing company can be divided basically into four categories as PEOs, BPOs, ASPs, or e-services based on the type of service it offers.

PEOs

A Professional Employer Organization assumes full responsibility of your company's human resources administration. This type of HR outsourcing company becomes a co-employer of your company's workers by taking full legal responsibility of your employees, including having the final say in hiring, firing, and the amount of money employees make.

BPOs

Business Process Outsourcing is a broad term referring to outsourcing in all fields, not just HR. This type of HR outsourcing company differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process. Specifically in HR, a BPO would make sure a company's HR system is supported by the latest technologies, such as self-access and HR data warehousing.

ASPs

Application service providers host software on the Web and rent it to users some ASPs host HR software. Some are well-known packaged applications (People Soft) while others are customized HR software developed by the vendor. These software programs can manage payroll, benefits, and more.

E-service

E services are this HR outsourcing company that is web based. Both BPO and ASP's can be referred as e-service companies.

A company which has decided to outsource its human resources has to decide as to which type of vendor to go for and which offshore destination to choose for outsourcing its human resource functions.

When you outsource HR functions, some HR Outsourcing company goes with the "all-or-nothing" approach, requiring that they handle all your HR functions or none at all. Some HR Outsourcing company is full-service and will provide these as well as additional services like on-call consultants, who will come in to train or even settle a dispute.