HR activities such as pay-roll administration, training and development record- keeping, performance appraisal records, human resource policy clarification etc are all people intensive activities as they involve a lot of time and energy. These activities are repetitive and are routine in nature. Therefore the companies with intent to concentrate on their core activities outsource these activities to BPOs which specialize in the same.

HR services include :

• Payroll administration which includes handling taxes issues, Leave with wages, sick leave etc
• Employee benefits: Some companies outsource the employee benefits like Health, Medical, Life, 401(k) plans etc to BPO's who specialize in handling the same
• HR management process inclusive of Recruitment, hiring, and firing of candidates. Usually when a candidate joins a company necessary back ground checks are done. These background checks are conducted by BPO to whom these activities are outsourced. After a candidate joins a company and performs for a certain period of time their performance has to be appraised leading to a revision in their wages.BPO's do such wage revision on behalf of companies. They also conduct exit interviews for employees who decide to quit the company
• Risk management which includes: Workers' compensation, dispute resolution, safety inspection, preparation of office policies and handbooks are also handled by BPO's on behalf of companies