According to this Harvard Business Review, optimized outsourcing reduces almost 20-30% of your annual in-house HR costs. The next question is how.
How does outsourcing reduce costs?
By sharing or outsourcing the most expensive HR functions, you can reduce a substantial amount in your budget, which could otherwise be used to enhance your core operations. With outsourcing, you can control where your money goes. You can choose what services you require and pay only for those necessary ones.
The outsourcing service providers take the expenses of the required functions and spread them across multiple client organizations meaning, that a high level of service can be provided to a company at a much lower cost.