I see your concern in the downsizing of the HR department. But differ with you, as HR is fundamentally the Think Tank of the organization. Hence this segregation of repetitive tasks would help HR to focus more on development. I refer to an article written ' which jobs risk outsourcing’. It stands true for every job irrespective of functions. If a role doesn’t required to be delivered right from the place of action and can be easily trained, it will always get outsourced .This had been happening across nations , verticals and functions.
Another Look at Offshoring: Which Jobs Are at Risk and Why? - Harvard Business Review
This would mean that we would have more verticals within HR. Even now , the HR generalist anyhow matures into HR Specialist. Hence as the HR Outsourcing stabilise, it would offer more opportunities to the professionals to choose within the verticals in HR.
Hope this answer's your question. Do revert if you wish to know any further.
31st July 2010 From India, Mumbai
4th August 2010 From India, Madras
Greeting of the day..!!
As you said HR department will be downsized if they go on outsource. But nowadays, outsourcing has become one of the major trends. The main reason one outsource is to lesser their burden. Mostly small business people outsource comparing with large business like mnc's. The reason is large company posses with the separate HR department but that's not the case with small business. Most of the small business people don't have HR department where they opt in for outsourcing.
Attachment highlights the reason why business steps on to outsourcing nowadays.
17th November 2014 From India, Chennai