Everything You Need to Know About Human Resources Business Process Outsourcing (BPO)

For business owners, human resources (HR) is a critical aspect of running a successful organization. From recruitment and onboarding to employee reviews and benefits programs, managing your company’s HR responsibilities requires careful coordination and frankly, a lot of work. As your business grows, the demands posed by HR can become overwhelming. That’s where business process optimization, or BPO, comes in.

In this blog post, we’ll discuss some key aspects of human resources BPO, including what it is and why it might be beneficial for businesses like yours. We’ll also point you in the direction of some top HR BPO companies that can help you streamline your HR processes.

What is HR BPO?

HR Business Process Outsourcing (HR BPO) refers to the practice of outsourcing human resources processes to third-party vendors. Vendors manage a business’s day-to-day human resources operations, from payroll and taxes and recruiting and hiring. HR BPO typically offers both software and services that help companies streamline these processes, helping small- and midsize businesses save time and money.

Admin duties can quickly become a headache for businesses in the growth stage, and it might not make financial sense to keep HR ops in-house. The additional staff, resources, and software needed to run HR often comes with a hefty price tag, so it’s often more cost-effective for companies to outsource this side of operations to a team of highly-trained HR professionals.

Benefits of HR BPO for Businesses

Not only does HR BPO relieve companies of administrative duties, but they also act as an important wellspring of expertise for smaller enterprises. Here are a few of the key benefits of HR BPO:

Regulatory Compliance

In many localities, an ever-changing landscape of employee protection laws and tax regulations can prove to be a liability for businesses without a dedicated team of HR professionals. An HR BPO company will keep its finger on the pulse of these regulations and ensure your business stays compliant with the laws in your country. They may also be clued into the types of laws governing your industry; for example, the tax structures that affect US companies that primarily employ independent contractors.

Cost Savings

Hiring an in-house HR team is costly, and you’ll likely need to invest in specialized software for things like payroll and taxes, employee benefits management, and more. However, when you partner with a human resources BPO firm, you can expect that they’ll have the manpower and technology to support your business’s admin needs. Outsourcing is often much more cost-effective, particularly for small and midsize businesses.

Specialized Knowledge

HR BPO companies not only take on the day-to-day responsibilities of HR, but they can also act as consultants in areas such as benefits, taxes, and recruitment. With HR BPO, you can tap into a wealth of specialized knowledge from professionals who live and breathe HR. Depending on your needs, it may be necessary to partner with BPO firms that specialize in the benefits and tax structures of your country or in recruitment for your particular industry.

What Services Does HR BPO Offer?

Depending on your business’s needs, your HR vendor may help you with any number of services. Many businesses choose to keep certain operations in-house, such as hiring, while outsourcing tasks like payroll. Other businesses use HR BPO companies for all of their human resources needs. Generally speaking, you can expect an HR BPO firm to help with the following:

Payroll and timekeeping

HR outsourcing companies are extremely valuable for those wishing to leave payroll in the hands of trusted professionals. Dealing with timekeeping, direct deposit, and paychecks is time-consuming and leaves no room for error. The specialists at HR outsourcing firms have payroll down to a fine art, and that alone is reason enough for many organizations to outsource.

Employee Benefits

Offering a great benefits package is crucial for attracting and retaining top talent, but the administrative tasks associated with employee benefits are burdensome. It often makes more sense to outsource these tasks than try to manage everything in-house.

Recruitment and hiring

HR vendors can help you fill open positions by advertising vacancies, screening, and tracking applicants, and even conducting interviews.


Tax season can be a nightmare for businesses. HR BPO vendors are experts at managing tax administration for businesses, whether they primarily employ W2 workers or private contractors.

Regulatory compliance

With HR outsourcing, you can reduce the risk of regulatory non-compliance. HR BPO firms typically stay up-to-date with regulations related to employment and taxes, and their oversight is invaluable in addressing compliance issues that may otherwise have been overlooked.

HR BPO Companies

Outsourcing your human resources ops to HR experts has never been easier. These BPO vendors recruit the top HR talent in their fields to ensure your company gets the most out of your investment.

BPO Connect

BPO Connect offers a full range of outsourcing services and thought leadership, including HR BPO. They have worked with teams across the world, including the Philippines, Malaysia, Turkey, India, Rwanda, Sri Lanka, and Kenya offering a wide range of outsourcing services. They’re also a trusted provider of information and resources for companies considering outsourcing.


Accario is an BPO leader specializing in accounting, bookkeeping, and SMSF and pension admin. They’re a great option for accounting practices, franchises, small businesses, and enterprises in need of UK or Australian pension administration.

FBC Asia Pacific

FBC Asia is a leading BPO working primarily with teams in the Philippines, Singapore, and Sri Lanka. In addition to customer care and telemarketing, FBC offers recruitment process outsourcing to businesses operating in telecom, insurance, healthcare, consulting, and accounting.

Final Thoughts

While the decision to outsource your human resources functions may not be an easy one, it is a fantastic option for businesses that want to save on the time and costs associated with HR admin. From hiring to payroll and everything in between, a BPO firm can act as a trusted partner in human resources.



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