HR outsourcing, also known as human resources outsourcing or HRO, is a strategic practice where businesses delegate certain HR functions to external service providers. These providers specialize in managing various aspects of HR operations, ranging from payroll and benefits administration to recruitment and training.

Despite these benefits, HR outsourcing also presents certain challenges and considerations. Companies need to carefully evaluate potential providers, negotiate service agreements, and establish clear communication channels to ensure that outsourcing arrangements align with their business objectives and requirements. Additionally, maintaining a balance between outsourced and in-house HR functions is crucial to effectively manage organizational culture and employee engagement.