More than a quarter of employers are currently looking at outsourcing all
transactional HR processes, according to the latest research.
Around 31 per cent of firms are considering an outsourcing deal, with cost
cutting the main objective.
The survey of 800 HR directors by Capita HR found more than half hoped
outsourcing HR would cut costs (54 per cent), while almost a third (31 per
cent) wanted to have access to new technology and skills.
The other main drivers were reduced transport costs (15 per cent) and the
expected ability to develop new products and services (15 per cent).
It showed that HR directors were most likely to initiate the process,
although managing directors usually get the final say.
Earlier this month, research from the CBI found that many employers were
looking to outsource the HR function to overseas staff.