What is Human Resource Outsourcing (HRO)?

Human Resourcing Outsourcing (HRO) denotes a contractual agreement between an organization and an external service provider wherein the latter is tasked with the responsibility to undertake and handle HR functions for the former. Generally, organizations may outsource a part of their HR functions to allow their core internal HR to focus on strategic management issues, whereas some may outsource their entire HR departmental responsibilities. Generally, outsourced processes are restricted to the ones which are not critical and confidential for the organization.

HRO denotes the process wherein an organization utilizes the services of a third-party agency, under a contract, to handle and manage its HR functions, partially or wholly.

HRO is an important HR decision and initiative and assists the organization to allow its resources to focus most of their time and resources in handling strategic affairs. This also helps an organization in gaining time and cost advantages.

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