HR Departments are under constant pressure to contribute to overall company savings and to find ways to reduce costs. Outsourcing can therefore seem an effective and attractive means of doing so. However, focussing purely on cost is to only see a small part of the picture. A board's decision is more likely to be influenced by the wider of HR outsourcing.
Pay and Benefits magazine argues ('Payroll Bureaux: Working in partnership', August, 2012), “Today’s organisations are looking for a strategic approach to their payroll processes, with the main drivers behind adopting bureau services being to increase effectiveness, reduce overheads and aid business continuity while reducing risk and responsibility.” It concludes, “While cost is a major driver, it should never be the only factor.”