Traditionally, recruitment is seen as the cost incurring process in an organization. HR outsourcing helps the HR professionals of the organisations to concentrate on the strategic functions and processes of human resource management rather than wasting their efforts, time and money on the routine work.

Outsourcing the recruitment process helps to cut the recruitment costs to 20 % and also provide economies of scale to the large sized organizations.

The major advantages of outsourcing performance management are:

Outsourcing is beneficial for both the corporate organisations that use the outsourcing services as well as the consultancies that provide the service to the corporates. Apart from increasing their revenues, outsourcing provides business opportunities to the service providers, enhancing the skill set of the service providers and exposure to the different corporate experiences thereby increasing their expertise.

The advantages accruing to the corporates are:

turning the management's focus to strategic level processes of HRM

accessibility to the expertise of the service providers

freedom from red tape and adhering to strict rules and regulations

optimal resource utilisation

structured and fair performance management.

a satisfied and, hence, highly productive employees

value creation, operational flexibility and competitive advantage

Therefore outsourcing helps both the organisations and the consultancies to grow and perform better.