Professor Ed Lawler who is professor of business at the Marshall School of Business at the University of California at Los Angeles stated outsourcing HR administration as  “. “Most midsize companies don’t have competency in the administrative and transactional activities that go on in HR”.

HR administration is of no use if it not enhances the organizations operational capability and it looks non value adding department of the company which is of no benefit. So HR administration required really skilled, hardworking, intelligent people who can really make the difference to the organization in a positive context.

Now new trend in global market is outsourcing which is mainly done by the companies either to enhance the performance of one particular service and decrease the workload of the employees or to reduce the operational cost of the organizations. Most or the organizations in HR administration wants to transfer non-core activities to the specialist service provide companies .This new trend is shifting HR administration is from being tactical towards strategic.

Organizations opt for Outsourcing mainly because of  either to enhance the operational capability of the organization by allowing employees to focus on core activities or to cut the unnecessary costs.