HR outsourcing now an option for mid-sized firms, vendors say

Once the exclusive domain of giant corporations, outsourcing the HR function is now on the table for organizations with as few as 2,000 employees
By Todd Humber
|CHRR, Guide to HR Technology|Last Updated: 08/15/2005

Molson. Air Canada. CIBC. BMO. It’s a pretty impressive list of some of the giants in Canadian industry. What do they have in common? Outsourcing the HR department. They’ve all tinkered with the idea of, or have implemented, moving the non-strategic parts of their human resource function and shipping them off to a third-party.

Outsourcing the HR function has been, for the most part, the exclusive stomping ground of very large organizations. It simply didn’t make sense from an economic standpoint for organizations with less than 10,000 workers to consider dumping the HR function to an outsource provider.

But the times, they are a changing, at least on the HR outsourcing front. Technology has evolved and dropped in price, and vendors are co-operating in an effort to offer a complete HR outsourcing solution to mid-sized firms.