A Helpful Guide to HR Business Process Outsourcing (HR BPO)

A Helpful Guide to HR Business Process Outsourcing (HR BPO)

Every business wants its organization to perform efficiently and effectively, and it is possible when the organization’s workforce is managed properly. To keep and maintain the organization’s performance effective, HR plays an important role in the company. The HR team handles all the employee-related activities of the company like welfare, productivity, employee retention, compliance, and many other duties.

HR performs many functions for the company. However, not all in-house human resources departments can meet these standards. Thus, many business organizations look for and outsource their Human Resource BPO services.

In this blog, you will get thorough information about how companies outsource the back office, their functions, and many more. Let's get into the insightful details.

What is HR Business Process Outsourcing?

Human Resources BPO companies help business owners manage their organization's HR activities. These services offer a variety of features, and companies can outsource all or only the essential functions.

The following are the most outsourced HR functions in the companies:

  • Hiring and Requirements
  • Administration
  • IT Solution Services
  • Track Applicants
  • Personnel Training
  • Performance Appraisal
  • Payroll Handling
  • Compensation
  • Service and benefits for the staff
  • Employment Evaluation

HR BPO companies are experienced and expert in handling Human Resource activities. You can outsource HR operations to specialized HR vendors as per your needs and focus on your core business functions.

After the pandemic, many companies have started bringing their business online and outsourced digital business solutions to grow and expand their business online. Now, the HR outsourcing market is increasing rapidly. According to ReportLinkder, the market size of HR outsourcing was $33 billion in 2020 and might reach $46 billion in 2027.

Benefits of Business Process Outsourcing

Human Resource BPO offers various benefits to a company. Here is a list of some of the benefits mentioned below.

  • Time-Saving:The HR team works on various tasks that are tedious and time-consuming such as interviewing, payroll, training, and onboarding. Thus, companies outsource back office services, thereby saving time and effort.
  • Cost Saving:Having an in-house team of HR in the company mostly becomes expensive. Businesses outsource back office services to reduce the financial expenses of the organization that works on various activities and is cost-effective.
  • Skilled Professional:HR BPOs are professionals working for several industries for decades. They are experts and have concise knowledge to perform the specific activity. Therefore, businesses outsource the human resources BPO services to manage their in-house operations.
  • Access to Global Talent:Vendors have access to a global network and are adapted to trends, market challenges, and operations. Companies outsource human resources BPO to hire the best candidates for jobs, marketing, branding, etc.
  • Risk Mitigation:HR is responsible for executing many complex legal documents of the company, and laxity in work can cause legal problems. But outsourcing services have their back office team which is professional.

In order to grow business online, business process outsourcing services play a vital role and have become a game-changer activity for business organizations.

How HR Functions Work in the Company?

We have discussed the benefits of outsourcing an HR BPO company. But do you know how an HR department functions work in the company? We have mentioned some of the HR operations below. Let’s talk about them.

  • Hiring:The human resources department takes responsibility for the hiring process and hires new employees when the company needs it. An HR calls the candidate, schedules their interviews, and takes care of all the paperwork while appointing the candidate at the company.
  • Training:When a new employee is hired in a company, he needs some training to understand the work. The HR of the company takes care of the employee, provides necessary resources, and monitors the progress.
  • Attendance:An HR creates the attendance sheet of the company's employees to keep track of the employees. The HR department looks after what time employees are coming to the office what time they are leaving the office, and who is absent on which day. It helps the HR department to create a payroll of the employees.
  • Payroll:HR shares a payroll slip with every employee of the company containing information about their salary such as deductions and bonuses.

Apart from this, the HR of the company also focuses on workforce-related activities like compensation, health, safety, performance management, etc.

How to Select the Right HR Business Process Outsourcing Company?

While outsourcing the HR activities for your organization, you should bear the following points and pick the best HR BPO service for your company.

  • Size of an organization:It is essential to review BPO services and select the right service as per your company's needs. If your organization is small, then you should look for a small-sized BPO company and avoid big companies as they are efficient for your business.
  • Expertise and Credentials:When choosing BPO services, look for an experienced and established firm in the same industry. Along, check for credibility and review that they work for distinct services and provide effective solutions.
  • Track RecordTo choose the right option for your business, you need to do some research about service providers, check their previous client performance, and ask potential BPO partners for references.

Once you are satisfied with the vendor's services, choose the right one as per your requirements.

Wrapping Up

HR BPO services are on the rise but also come with some potential risks. However, it depends on whether you want to source BPO services to run some functions or for the complete HR operations of your organization.

If you also want to grow your business online and compete with your competitors, then we recommend you go through our Business Process Outsourcing Services portal. We provide services for complete business operations and help you expand your business effectively and comprehensively.

Pioneering Next-Gen Solutions For Business Operations

Optimize your business operations to have better recognition, seamless connectivity, maximum productivity, and faster results.


Dream Big, We'll Make It Happen!