HR: outsourcing versus in-house

By Napthens

01 Oct 2015

Website

Outsourcing an HR function is increasingly popular, and can complement in-house teams, explains Nicola Mason, HR consultant at Napthens solicitors.

Many businesses outsource functions, and there is no doubt this trend is set to continue as companies look to work efficiently and cost-effectively while still having access to expert advice.

HR is one of the most popular areas of a business to be outsourced, and the CIPD (Chartered Institute of Personnel Development) found through its winter 2014-15 survey that a third of SMEs reported outsourcing complex advice. There are many reasons why businesses turn to outside help for HR functions. The most common we come across at Napthens include:

• Size: Some businesses are simply not big enough to have a dedicated team internally, and need to consult with a third party provider leaving the management to get on with the day-to-day running of the company and focussing on business development. It is also very common for HR consultants to work on a project-by-project basis for a business, working at a fairly strategic level, developing an HR strategy and ensuring it matches up with the company’s business plan.

• Specialist advice: Some are larger organisations but need help or support on a complex area of HR that they are not equipped or have the capacity to deal with, such as a TUPE transfer. Given the constant changes in HR and employment legislation, it is unsurprising many businesses simply struggle to keep up and would rather call in experts. This is also an important way to reduce risks associated with HR and compliance.

• Sensitivity: In some cases, teams may be called in to handle sensitive issues such as a disciplinary issue against a business’ HR team itself. Management is not always trained or skilled enough to deal with these types of situations. Having an independent HR advisor can give additional credibility to the process.

• Cost: Outsourcing can be far more cost-effective for a small or growing business than hiring dedicated staff, and can give access to advice and resources that simply wouldn’t be affordable otherwise.

Whatever the reason for outsourcing, it’s important to remember that where there is an existing HR team in place within a business, they should not feel threatened. As Marcus Buckingham, renowned business consultant once said, “Do what you do best and outsource the rest.” HR experts will work alongside an existing team to guide them through a process, and perhaps work with them to transfer knowledge so that in the future they will have the capability to handle such a project themselves. Outsourcing can offer many benefits, particularly to a growing business, and should always be a serious consideration when assessing HR requirements.

Enjoyed this? Read more from Napthens

Latest news

1

Architectural designer becomes youngest Civic Trust chair Nixie Edwards

Architectural designer becomes youngest Civic Trust chair

06 Nov 2026

2

Carousel tax fraudster loses £90m court appeal Arif Umarji Patel The Seized Ferrari Counterfeit Underwear Container With Counterfeit Clothes Inside 002

Carousel tax fraudster loses £90m court appeal

05 Nov 2026

3

Combined authority takes control of £45m adult skills fund Welding Bootcamp Learners In A Practical Lesson At Lancaster And Morecambe College

Combined authority takes control of £45m adult skills fund

05 Nov 2026

4

Legal View: Finding the right separation route Amy Harris Feat Img

Legal View: Finding the right separation route

05 Nov 2026

5

Panache Cruises in triple appointment Panachecruises

Panache Cruises in triple appointment

05 Nov 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Lancashire Net Zero Conference 2027
NZC27 Social 1200x800Generic 1 11 Feb 2027

Lancashire Net Zero Conference 2027

The Wellbeing Farm, Edgworth, Wheatsheaf Hill Farm, Plantation Road, BL7 0BY

09:30 - 02:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

National Minimum Wage (NMW) and National Living Wage (NLW) Compliance
Untitled design (11).png.png 10 Nov 2026

National Minimum Wage (NMW) and National Living Wage (NLW) Compliance

Online - Microsoft Teams

11:00 - 11:45

Immigration changes on the horizon - what HR teams need to know
Immigration webinar.png.png 10 Nov 2026

Immigration changes on the horizon - what HR teams need to know

Online, via Microsoft Teams

12:00 - 12:45

Preston Tech Connection: People Behind The Ideas
11 Nov 2026

Preston Tech Connection: People Behind The Ideas

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:03

The Business Network Central and East Lancashire
12 Nov 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Ai in business: protect, innovate & grow
Door4 Forbes 12 Nov 2026

Ai in business: protect, innovate & grow

Brockholes Nature Reserve, Preston, PR5 0AG

09:00 - 12:00

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity
N123_1200x400px_Title&Subtitle (1).png.png 12 Nov 2026

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity

Leighton Hall Estate Storrs Lane, Carnforth, LA5 9ST

09:00 - 16:00

Lancaster District Business Support Expo
Lancaster And Morecambe Logo 1 18 Nov 2026

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

09:00 - 13:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin