When organisations put forward a business case for HR outsourcing, the potential benefits are frequently cited. In practice, these benefits are not necessarily mutually exclusive, while conversely they might be achieved through some alternative solution rather than via outsourcing.

Commonly mentioned benefits include:

• Reduced costs.

• Increased efficiency.

• Access to up to date policies and templates.

• Improved people management information

• Access to HR expertise that is not available internally.

• Increased flexibility and speed of response to HR problems.

• Ability to support or fit well with an overall strategy (for example where the organisation is outsourcing a number of its support functions, of which HR is just one part).

• Reduced risk, as it is possible to scale up and down more efficiently.

• Capacity for HR to operate more strategically