--- title: Outsourcing increasing in the second half of the year description: Outsourcing is becoming a major part of how companies do business. --- [Skip to content](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/human-resource-management/outsourcing-increasing-in-the-second-half-of-the-year#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/human-resource-management/outsourcing-increasing-in-the-second-half-of-the-year](mailto:?subject=Check%20out%20https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/human-resource-management/outsourcing-increasing-in-the-second-half-of-the-year) July 22, 2014 # Outsourcing increasing in the second half of the year Written by: [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions) Outsourcing is becoming a major part of how companies do business. In fact, according to the Information Services Group Outsourcing Index, the number of companies that are outsourcing their businesses [has expanded](http://www.isg-one.com/web/research-insights/isg-outsourcing-index/) in the second half of the year. The total number of contracts that the company managed to track averaged to about 340 of $5 million dollars or more. "This record-high volume generated $6.4 billion in ACV​ \[actual cash value\], also an all-time record for the period, and up 72 percent on last year's weak second quarter," the report [stated](http://www.supplymanagement.com/news/2014/smaller-shorter-deals-push-global-outsourcing-activity-to-record-level), according to Supply Management. In other words, more companies are realizing the power that comes from investing in outsourced labor that saves time through sending out challenging parts of a business. One example of a great way to save money on human resources is simply to outsource through a [HR back office](https://www.innovativeemployeesolutions.com/recruiter-staffing/back-office-support) services company. For a more specific approach, companies with major payroll issues can find a payroll management business. These are ways of expanding a business without increasing the number of full-time employees. In Orange County, California, the government is [planning to do just that](http://www.voiceofoc.org/countywide/county_government/article_e24f9d9e-10b4-11e4-97be-001a4bcf887a.html), according to the Voice of Orange County. It is taking work that would otherwise be paid for by the public through tax dollars, and assigning those jobs to private companies that can do the work more cheaply and probably with greater efficiency. The companies that do outsourced work are specialists. For something complex like HR, businesses necessarily want to work with a group that knows everything there is to know about all kinds of laws and regulations - things that are constantly changing. Another way to outsource work is to hire a temporary worker from an [employer of record](https://www.innovativeemployeesolutions.com/recruiter-staffing/employer-of-record). Such a person will work just as hard as a full-time employee and cost less money because much of the expenses behind the HR and payroll side are covered by the employer of record. Tag(s): [Human Resource Management](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/tag/human-resource-management) ## [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions) ## Other posts you might be interested in View All Posts ## [Recruiters and Staffing 2 min read | June 16, 2014 There are many benefits to hiring an employer of record Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/recruiters-and-staffing/there-are-many-benefits-to-hiring-an-employer-of-record) ## [When Is it Time to Partner with an Employer of Rec 3 min read | August 10, 2016 When Is it Time to Partner with an Employer of Record? Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/employer-of-record/time-partner-employer-record) ## [Human Resource Management 2 min read | July 7, 2016 Why the Contingent Workforce is the Future of Business Read More](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/blog/recruiters-and-staffing/contingent-workforce-future-business) ## Subscribe to email updates Additional content around the benefits of subscribing to this blog feed. - [Innovative Employee Solutions Blog](https://blog.innovativeemployeesolutions.com) © 2014-2026 Innovative Employee Solutions. All rights reserved. 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