HR Consulting vs. HR Outsourcing: How Do They Really Differ and Which Fits Your Needs?

What is the difference between HR Consulting and HR Outsourcing?

HR Consulting involves hiring external experts or firms to provide advice, guidance, and strategic support on various HR functions within an organization. These consultants offer their expertise to help improve HR processes, policies, and practices based on the specific needs of the company.

On the other hand, HR Outsourcing refers to the practice of contracting out specific HR functions or processes to external providers. This can include tasks such as payroll processing, recruitment, training, and benefits administration. By outsourcing these functions, organizations can focus on their core business activities while leveraging the expertise of specialized HR service providers.

HR consultants provide advice, and their value addition is mainly on strategy, process development, system development, etc. Some of these systems could be outsourced. For example, a consultant tells you what training inputs are to be given, and this training could be outsourced. HR consultants advise on the competencies required for various jobs, and the recruitment could be outsourced.

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HR consultants provide advice, and their value addition is mainly on strategy, process development, system development, etc. Some of these systems could be outsourced.

Examples:
A consultant tells you what training inputs are to be given. This training could be outsourced. HR consultants advise on the competencies required for various jobs.

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In simple terms, HR Consulting provides advice on how best you can carry out the work. On the other hand, HR Outsourcing involves a third party performing the activities on your behalf.