The Human Resource Outsourcing (HRO) market size is expected to reach $45.8 billion by 2027. DesignRush reached out to expert business consultants to discover the reasons why businesses should outsource HR.


The global market size for Human Resource Outsourcing (HRO) had an estimated value of $32.8 billion in 2020 and is projected to reach $45.8 billion by 2027. This trend is expected to grow stronger as HR outsourcing remains to be one of the most cost-effective and fastest ways for businesses to scale and thrive.

DesignRush, a B2B marketplace connecting businesses with agencies, leveraged its 13,000-agencies-strong network for quick insights – or “QuickSights” – on the reasons businesses should outsource HR.


According to Civility Partners Founder and CEO Catherine Mattice, SHRM-SCP, organizations should consider outsourcing HR to obtain an expert perspective and minimize the risk of poor compliance.

"Outsource HR when you reach [more than 5] employees, especially if [operating] in California. Payroll, benefits, leave, etc., [are] a risk if [not handled by a trained HR professional],” said Mattice. “Also, [the] outsourced HR can take confidential complaints and gain insight about employee needs in a way [that] internal managers cannot."


In the opinion of Dr. Tana M. Session, CEO and Founder of TMS Business Solutions, Inc., businesses should particularly outsource HR to save time and focus on core operations that drive business growth.

"It is time for a business to outsource HR when the tasks outweigh the importance of other business needs,” said Session. “It provides the business with specialized HR expertise to assist employee relations, benefits and other tasks. This enables organizations to continue to grow while receiving necessary HR support."

Hafwen Truong, HR business partner manager at Kotwel, shares the same opinion claiming that outsourcing HR is worth the effort as properly trained professionals allow organizations to focus on their key business goals.

"The best thing about outsourcing HR is that you can focus your time and attention on your key business goals,” said Truong. “[However,] you need to find the right company to handle the job. It can take time, but it’s worth the effort if you decide to go down this road."


Meanwhile, Courtney Dade, CEO and Chief Strategist at CSD Marketing and Consulting, LLC believes that small businesses should outsource HR to a third-party service provider to manage both talent acquisition and regular business operations.

"In a thriving small business, you may not have the time it takes to develop, prepare and implement a successful recruitment and hiring process,” said Dade. “Something will suffer— either the hiring or the operations. You can succeed at both when you outsource your talent acquisition strategically.”

DesignRush released the February list of the top HR outsourcing companies that help businesses improve its talent acquisition and retention:

1. Civility Partners -
Expertise: Leadership Development, Performance Management, Workplace Bullying and more

2. TMS Business Solutions, Inc. -
Expertise: Career & Performance Management, Customized Corporate Training, Human Resources Infrastructure and more

3. CSD Marketing and Consulting -
Expertise: Human Resources and Hiring, Company Formations, Strategic Planning and more

4. ProMailing Solutions -
Expertise: Relationship Management, Reputation Management, Branding and more

5. Kotwel -
Expertise: Localization Services, AI Training Data Services, Data Entry Services and more

6. DNA 325 -
Expertise: Recruitment, Company Formation/Operational Support, HR Management and more

Expertise: Compliance and Risk Management, Recruitment, Remote Team Administration and more

8. RNT Consulting Solutions -
Expertise: Recruitment, HR Shared Services, HR Outsourcing and more

9. Coleman Services -
Expertise: HR Consulting, Permanent Staffing, Temporary Staffing and more

10. Talents and Skills Africa Consulting LLC -
Expertise: Payroll Services, Recruitment, Permanent Staffing and more

11. Quad Consultancy -
Expertise: Recruitment, Employee File Management, HR Policies & Procedures and more

12. Proten International -
Expertise: HR Advisory, Talent Acquisition, HR Technology and more

Brands can explore the top HR outsourcing companies by location, size, average hourly rate and portfolio on DesignRush.

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