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But with so much on its plate, it makes perfect business sense for HR to outsource certain functions and processes to an external supplier so that it can concentrate on its core functions, such as talent management.

Generally, payroll administration or recruitment, transaction or administrative elements of HR activities, and supporting technological and physical infrastructure are aspects of HR that can commonly be outsourced.

To outsource

Sub-contracting some or all non-core processes to specialist providers has its benefits. It enhances organisational operations by allowing organisations to concentrate on what they do best. It frees up time for HR professionals to operate more strategically to support organisational performance.

And with outsourcing, companies are better poised to meet changing business conditions, demand for products and services, and technologies. Organisations also have access to improved HR IT systems and expertise, which may not be readily available internally. Companies enjoy increased flexibility and quicker response from their specialist providers.

However, the decision to outsource HR should not be taken lightly. Sub-contracting HR functions is not without its pitfalls. Like any other business venture, it exposes companies to a different range of risks.

Companies can lose control over their outsourced functions, and in the process, lose knowledge to the provider. Outsourcing can also impair organisations' capabilities to integrate processes. Standardisation of processes may not necessarily be empowered toward organisations because it resides with the provider's preferences.

In more drastic circumstances, outsourcing can lead to disengaged and unmotivated employees as they might feel jobs might be lost to vendors.

And as most outsourcing agreements are for the long-term, it takes great commitment for companies to maintain a good working relationship with their vendors.

Alma Othman  is regional managing director of GSI Executive Search. (www.gsiconsultants.com)