Human resources outsourcing is a management strategy that involves handing over hiring process of certain position to a professional organization. Designed to increase efficiency and professionalism of the outsourced position, this strategy has been largely used with the development of information technology.
1. Human resource outsourcing has led to a systematic functioning. For example, by outsourcing, three same posts by three different companies will be merged into one same request, thus reducing personnel, time and process cost and mostly reducing operational cost of each single company.
2. HR outsourcing allows a company to reduce its basic functional workload. Basing on the 80 / 20 rule, 80% of profit come from 20% of core business, by outsourcing the non- core activities, more time and budget can be dedicated to the core 20%.
3. HR outsourcing promotes labor refinement sorting, which is conducive to a more efficient social functioning by optimizing the utility of skill set.
4. Significantly reduce company's operating cost and optimized working process.