HR is the fifth most outsourced function after IT systems and support,
according to a survey by law firm Tarlo Lyons.
Outsourcing Survey 2001 shows 8 per cent of the 71 responding companies have
IT systems and support is the most outsourced function on 28 per cent,
followed by finance, legal services and cleaning.
The reasons for outsourcing functions include a desire to save money,
provide better services to clients and compensate for a lack of internal
Kevin Barrow, head of the IT personnel group at Tarlo Lyons, said, "HR
is commonly outsourced because it is undervalued in most companies and is just
seen as an overhead.
"Outsourcing the administration side of HR also gives managers the
chance to concentrate on more strategic matters."
The biggest problem with outsourcing was cited as "failure to live up
to expectations", although more than three-quarters of respondents are
satisfied they are getting good or extremely good value for money.