Human Resource Outsourcing

Human resource outsourcing (HRO) is the practice of contracting third-party providers to handle specific HR functions or the entire HR function. Common outsourced areas include payroll processing, benefits administration, recruiting (RPO), background checks, learning and development, and full HR through Professional Employer Organizations (PEOs). Smaller employers often outsource heavily; mid-size and large employers typically outsource specialized functions while keeping strategic HR in-house.