Economic slowdown to prompt greater use of outsourced human resources

Human resources outsourcing is likely to increase if the current economic slowdown continues, according to experts.

National Outsourcing Association chairman Martyn Hart told Personnel Today that employers would increasingly look to cut back-office costs by buying HR activities from specialists.

Market analysts have previously claimed that every big company in the UK is looking at the possibility of outsourcing its HR department. Hart said talk of a recession would make such a move more attractive.

“With a recession maybe coming, it is going to be a buoyant HR outsourcing market. People will look to cut costs while keeping up quality, and outsourcing is one way to do this.”

Offshoring to lower-cost countries is likely to increase this year as well, said Hart.

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