Advance Technology

Company outsourced their functions to have technical advantages. Every organization don’t have
enough or updated technology, so they outsourced. Advance technology can bring efficiency in HR
services. It also makes the transaction process quicker. Lack of existing technical talent company
outsourced. For example, If a organizations employee are not expert in using new technology for a
function, this organization will outsource for that function

Improved Service

Another benefit of outsourcing is quality improvement. When company hire a person for any service his
only responsibility is to do that work so there is a high chance for quality improvement. Manager can
choose best of breed vendors that means Manager can choose the vendors who have outstanding
previous record which ensures the best quality service. Outsourcing also ensure confidentiality, for
example an employee with some personal problem likes to consult with an external person rather than
internal one.

Specialized Experts

Another reason for outsourcing is to get specialized experts, some companies find laws and regulations
of HR so complex that they decide to outsource to other firms who have expert. And there is a motto
which is Outsource when somebody can do better than you. Everyone is not better in everything for
example some firm does not have proper trainer to conduct training, so they outsource to other firms
who have experts for give proper training to employees. Also, if a company outsource, employees of
that company get a chance to improve their knowledge and skills by working as a colleague with the
expert person from other organization.

Organizational politics

Company outsources a function to have an expert who will full fill the objective of the organization
without being involved in organizational politics, because he/ she is from the outside so there is no
chance to get involved in organization politics. Organization outsources to get rid of a troublesome
department, such as HR department of an organization underperformed, for better performance the
company outsourced. By outsourcing company achieve a ratio of 1:231 that means 1 HR person to 231
employees in contrast to traditional ratio of 1 Hr to 100 employees. Outsourcing a function reduce the
Head count, Head count is important in public sector For example fewer the civil servant on payroll, the
happier the taxpayer public is.