Human Resource Outsourcing - Helping Businesses Control Operations and Growth

In the 1970s, just a few years before the digital revolution started to materialize, two particular companies, “Heidrick & Struggles” and “Korn Ferry,” started thinking in a unique direction, a direction that was never explored before.

Their thoughts quickly took shape, and soon after, they were fully ready to provide the world’s very first recruitment outsourcing service. This was the beginning of the human resource outsourcing industry. As years passed, the digital revolution came along, and with it came a huge demand for human resources. The stupendous growth of the tech industry automatically translated to massive growth in both the number of businesses and their sizes. A well-off company with, say, 2,000 employees now could reach many more customers in different geographies. This meant opening up newer offices and stores in newer locations with say, an additional 2,000 employees.

This change in pace instantly introduced another big problem for almost all businesses: How to manage thousands of employees across different locations efficiently?

Today’s human resource outsourcing solutions are undeniably more superior to what Heidrick & Struggles and Korn Ferry started with, in the 70s. A single group of HR professionals sitting in India or the Philippines can fulfill the HR needs of millions of different employees for tens of different organizations worldwide without breaking a sweat. After all, what supercharged this development? What made it so efficient? And why exactly did the demand for this service grow with each passing year? Let’s have a look.


Take any business as an example. Imagine a legal firm that has thousands of employees on its payroll. From lawyers, paralegals, legal secretaries, record clerks, and bookkeepers to IT professionals, management, and HR professionals. For any legal firm, in fact, for any business, to be successful, it has to have two primary objectives:

1. Retain existing clients + keep getting more clients to make more money
2. Keep the cost of running the business as low as possible to make more money

As newer businesses kept popping up during the digital revolution, competition increased drastically. As a result, more businesses were solving the same problem for more or less the same number of people. Therefore, in such markets, objective #2 became way more important than objective #1: Keeping expenses low.

The HR function of any business is a non-revenue generating department. Such departments do not directly contribute to getting more business for the company. These departments, although being 100% essential, cannot be confused with redundancy. But at the same time may not be allowed to operate at such a high cost. According to 2017 research, it was observed that businesses with at least 2,500 employees were spending almost $600 per employee per year on just their HR function. Surprisingly enough, it was further observed that smaller businesses with fewer than 250 employees were spending a whopping $2,375 per employee per year on just their HR function! Such expensive problems could easily bleed a company to death within a matter of months if not realized and addressed on time.


At Exela HR Solutions, HR is what we do — day in and day out. We have a team of HR professionals, each an expert, dedicated to their slice of the HR pie to make sure all your HR tasks are carried out correctly and on time. Not only that, but we bring the best HR practices and robust HR technology to your company that minimizes employment-related risks and helps you take even better care of your employees.

  • Fast and Efficient Talent Acquisition Process: Our well-built network over the years allows us to find the right talent for your business as quickly as possible. This includes requisition management, sourcing and applicant tracking, interview assessments, offer management, onboarding management, and more.
  • Global Payroll Processing & Full Employee Benefits Administration: Our powerful HR technology that will back your organization has the ability to deliver payouts globally and on time. We also manage employee benefits like variable-component, hazard pay, overtime, etc., so your employees never get less than what they deserve.
  • HR & Business Partner Services: Dedicated HRBPs for your employees to make sure every issue or concern of theirs is addressed effectively and on time. This includes grievance management, leave management, engagement activities and surveys, travel and expense management, rewards and recognition management, workshops, coaching and mentoring, virtual focus and open house meeting management, and more.

Try Exela HR Solutions today!

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DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.