HR Outsourcing Proposal Template

It is respectfully stated that I, [NAME], have been working with ABC company for 4 years. ABC company is involved in providing consultations to its valued clients and performing background checks while recruiting employees and many other services.

I joined this company as an intern after completing my graduation. Later, I secured a permanent job as an assistant, promoted to the rank of manager due to my hard work and determination. I have been working tirelessly to improve the quality of consultation provided by the company and hire experienced individuals for the job.

Many clients do not waste their time and energy on researching products and services that they want to collaborate with therefore, they hire our services to do the hard task for them. In addition, many companies and businesses hire us to recruit suitable clients and provide a list of requirements that they want.

Our company is then responsible for doing background checks on education, character, and experience and providing the most suitable blend for the vacancy.

We are performing great on every avenue, but our HR department lacks the professional and experienced staff to cope with their duties. Therefore, I would like you to consider outsourcing the HR services to a third party so that company can perform well on all fronts. I have attached a proposal with this letter to draw your attention to the urgency of this matter.

Kindly consider my request.


HR, also known as Human resources is a crucial department at any company or business that takes care of several tasks for the company. HR Outsourcing is defined as the process of hiring individuals from outside of the company to take care of the HR department and related tasks.

Companies may assign a few tasks to these outsourced individuals or let them run the whole department depending on their requirements. It allows a company to take care of other matters and not spend time on things that can be managed by other professionals.

This phenomenon allows organizations to achieve cost and time efficiencies and improve their human resource strategies and provide enhanced services to their employees. HR is an essential partner in developing and executing organizational strategy.

If a company hires cost-effective strategies for managing HR, then they focus on what they do best and outsource the task to professionals thus, enhancing their competitive game as compared to performing all the tasks of the company regardless of their expertise and experience. Mostly, companies outsource those tasks of HR which are not confidential and critical.


The HR department of every company or business performs several tasks which cannot be neglected at any cost. Some of these tasks can be outsourced but most of the confidential tasks are managed by the parent company. Services provided by HR are mentioned below,

  • Payroll and compensation management of employees
  • Job evaluation and description
  • Staff training
  • Employee’s recruitment and selection
  • Tax filing and documentation
  • Bringing strategic changes in policies
  • Championing employees’ concerns
  • Attracting and retaining talent
  • Polishing raw talent to the required capability


There are pros and cons of every business or activity and are weighed by the individuals and decided about their requirements. The significance of HR outsourcing can be evaluated from the following points,

  • A well-functioning HR department requires well-trained staff and many accessories at its disposal. Outsourcing tasks can prove beneficial as it would relieve the company from added salaries of employees thus, proving cost-effective. The cost of outsourcing is variable and can be increased or decreased according to the requirements of tasks.
  • It also minimizes providing office space to a particular department and employees.
  • It provides an expert view of all the existing policies of the company and allows to remodel, update and change policies according to new methods and techniques.
  • Outsourcing allows you to work with people who are updated with the changing techniques and contribute beneficially towards the company’s progress.
  • It allows businesses to focus on their core strategies and take care of the rest of the matters.


HR outsourcing proposal template