Outsourcing is becoming the force behind the virtual organisation movement, and human resources (HR) is no different. Human resource outsourcing (HRO) is a process where companies utilize and outsource their HR functions to a third-party HR outsourcing provider because of their expertise and cost-effective offerings, including HR technology implementations.

Human resource outsourcing is when a company hires another company to handle some or all of its HR tasks. Instead of managing processes like hiring, payroll, and employee benefits internally, the company contracts with an external provider who specializes in HR services.