Office Max!

Why would you outsource Human Resources if people are your most valuable asset? A lot of Human Resources functions involve training, law or other aspects of business that not only change frequently with time but also look pretty much the same regardless of the type of business. For instance, training managers on the latest hiring and firing best practices isn't very different from one company to another. If you have small company, you might look at a PEO firm to manage your entire Human Resources function. That actually gives you more time to focus on your people instead worrying about compliance with the latest workplace regulations.

There has been alot of activity in the outsourcing markets lately, particularly in the HR outsourcing world.

Fidelity and BASF announced a five-year deal where Fidelity's HRO unit will handle BASF's payroll operations, health and welfare benefit programs and retirement plans. This is on top of the recent news that Fidelity's human resources and benefits outsourcing services added 1,175 new clients in 2004. (Disclosure: I work for Fidelity).

Hewitt announced HRO deals with Marriott, Rockwell, and Thompson (more details here, here and here).

ACS signed a deal with Delta Airlines.

Accenture and BT signed a 10 year, $575M, HR outsourcing deal.

Finally, ACS and Convergys were reported to be the leading bidders to acquire the $900M human resources outsourcing business of Mellon Financial.