Boom in outsourcing HR services

Outsourcing human resource functions may just be the wave of the future. More

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Boom in outsourcing HR services

LIGHTENING THE LOAD: Lee A Johnson, center, Rhode Island branch manager for Adecco Employment Service, says the firm continues to benefit from outsourcing. Also pictured are New England Tech student Heather Briggs, left, and Adecco Recruiter Heidi Escude.
Posted 6/18/12

Outsourcing human resource functions may just be the wave of the future.

In recent years, contracting out for human resource services has become a popular option for companies of all sizes to reduce costs, as many have become “lean and mean” due to the Great Recession. Now, more employers are recognizing the benefits of using outside providers.

According to the U.S. Bureau of Labor Statistics Occupational Outlook Handbook, 2012-13 edition, employment of human resources specialists is expected to grow 21 percent from 2010 to 2020, faster than the average for all occupations. Job opportunities are anticipated to be good overall, most notably in the employment-services industry.

The trend reflects the conclusions of several studies. According to the International Data Corporation, a company that provides market intelligence and advice, outsourcing human resource functions is one of the fastest-growing segments of the “business-process outsourcing” industry. According to the Everest Research Institute, an independent research organization, HR outsourcing jumped 20 percent between 2008 and 2009.

Lee A. Johnson, the Rhode Island branch manager for Adecco Employment Service, Providence, has seen the increase firsthand. “There are a lot of advantages; it will save you money in the long run,” she said. “Business is booming. Our first big increase was in 2009, and the next year it quietly but steadily grew. In 2011 we had a very good year. So far this year, our numbers are better than the same time last year.”

Adecco USA has more than 900 offices in North America servicing a range of clients with a variety of workforce solutions. The client range runs the gamut from very large, national corporations to the smallest local business. “We also serve some very small companies where we might send in one person because there is a need to see someone, almost on an on-call status. We can help them with their accounting or to work on a special project, even with something like mailing distribution,” she said. “We also can help by providing high-level management positions,” Johnson said.

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