More than 80% of fast-growing privately held firms in the U.S -- 83% to be exact -- are outsourcing the HR functions and plan to do so for at least the next two years, according to results of a PricewaterhouseCoopers survey released this week.
Keeping up with complex regulations, cutting and controlling operating costs, and eliminating the costs of in-house systems were the primary reasons cited for outsourcing HR functions. The two HR functions most frequently outsourced were administration of 401(k) and defined-contribution plans, and processing and administration of payrolls.
The survey involved 360 CEOs of product and service companies ranging from about $5 million to about $150 million in revenues or sales.
