Companies by and large have a choice—do it all or do what you do best. MetroMedia Restaurant Group opted for the latter, focusing on great food, best available services and proper ambiance at its 900 restaurants. As for non-core payroll processes, it outsourced them. Apart from the Banking, Finance and the Insurance sector’s outsourced services, HR is now showing its presence in the Outsourced services market. HR being a really big segment of large companies has a lot of processes which the companies will surely be wishing to outsource offshore, as compared to the most important ones that they need to personally attend. This has shown a positive increase in the graph of outsourced HR services, lately.

Payroll is just one of the 22 functions falling into HR segment that is routinely outsourced by companies today. Of all offshore outsourcing services, HR functions are the most popular, and within HR, payroll administration leads the march, followed by employee benefits administration. The top benefits experienced for outsourcing these and other HR functions to offshore outsourcing destinations like India are: improved service, lower costs and freedom to focus on core competencies. Saying it in the other way, companies gain the expertise of outside professionals able to perform HR functions better and at reduced cost than they could internally.

While HR outsourcing is catching on at large corporations--two-thirds of Fortune 1000 companies outsource some HR functions; it has become virtually common among midsize companies.