HR outsourcing refers to an agreement between an employer and an external party provider. In such a relationship, the employer transfers the management and responsibility for certain HR functions to the external provider. HR outsourcing companies/firms like Conc@t are offering comprehensive services of HR. There are various types of secretarial services available to employers in the market. The options can be specific such as outsourcing one particular aspect of one HR function like applicant tracking for affirmative action purposes, or can be broad as outsourcing the complete human resource department. There are various terms and types of arrangements prevalent in this process of HR outsourcing which is outlined below:

HR shared services refer to a consolidation of business functions within an enterprise to a highly skilled internal department or group. Under the shared-services model, the administrative functions can be handled in-house or outsourced to human resource outsourcing firms. When the services offered by the shared services group are combined into a major operation, they are often known as shared-services centres. Broadly defined, the shared services model is marked by the consolidation of administration or support functions for various departments. The HR outsourcing companies/firms are responsible for these shared services.

Employers take full advantage of flexible options to turn a fixed expense into a more manageable variable expense. This flexibility allows the organization to adapt to the highs and lows of a fluctuating marketplace. HR professionals must know about the vendor’s performance commitments and have specific and clear service levels and particular enforcement methods. Because service levels need to develop and improve over the life of the contract, HR managers must document the existing services when their contract becomes effective to ensure that the vendor has accountability. HR outsourcing companies/firms manage all these recruitment processes.