--- title: Market for outsourced human resources to grow tremendously description: HR outsourcing services offer a number of benefits to businesses. --- [Skip to content](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/employer-best-practice/market-for-outsourced-human-resources-to-grow-tremendously#main-content) [![IES Logo_Full-ColorNavy](https://blog.innovativeemployeesolutions.com/hs-fs/hubfs/IES%20Logo_Full-ColorNavy.png?width=300&height=140&name=IES%20Logo_Full-ColorNavy.png)](https://www.innovativeemployeesolutions.com/) - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) [mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/employer-best-practice/market-for-outsourced-human-resources-to-grow-tremendously](mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/employer-best-practice/market-for-outsourced-human-resources-to-grow-tremendously) August 26, 2014 # Market for outsourced human resources to grow tremendously Written by: [Danielle Itani](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/ieswebditani) HR outsourcing services offer businesses a number of benefits. Not only does it lower operational costs by bringing down overhead, but it can also make a company more efficient by removing the management of back-office functions that require close attention to detail and can generally be time consuming. These services offered by third-party companies are so valuable that TechNavio estimates the global human resources outsourcing market will have a [combined annual growth rate of 12.34 percent](http://www.reportlinker.com/p02154608-summary/Global-Human-Resource-Outsourcing-Market.html) until 2018. This means that companies are seeing the value of partnering with an [employer of record](https://www.innovativeemployeesolutions.com/recruiter-staffing/employer-of-record) to manage HR-related tasks and the popularity of these organizations will continue to rise. However, this raises a very important question: How to go about hiring the right HR outsourcing organization? Entrepreneur Magazine offers some useful suggestions for company owners to follow when [selecting an employer of record](http://www.entrepreneur.com/article/47340): - **Start wide, then narrow down**: To find the right HR outsourcing services, it is best to speak with a wide range of companies and then narrow the list down to a few. Gauge them based on the services they provide and work to uncover the history of the organization. A small-business owner can even interview current clients to get a feel for the company. - **Sit down with them**: Before making a decision, it's important to conduct a face-to-face meeting with all of the key players within an outsourcing company. This will give them a better feel for the company owner, while the entrepreneur will have a thorough understanding of how the relationship will go. These are just a few of the thought-provoking items that an owner of a small to midsized company would need to consider when making the choice to establish a business relationship with an employer of record. Tag(s): [Employer Best Practice](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/employer-best-practice) ## [Danielle Itani](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/ieswebditani) ## Other posts you might be interested in View All Posts ## [contingent workers 1 min read | March 2, 2023 How to Compete in a Tight Labor Market Knowing that Compensation is King Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/how-to-compete-in-a-tight-labor-market-knowing-that-compensation-is-king) ## [payrolling 5 min read | April 25, 2017 The IRS says 40% of employers make this mistake. Is your company next? 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