To counter the fierce competition in the global market and to accomplish long term growth, organizations need to develop, refine and concentrate on their core competencies. Organizations need careful planning and strategy formulation and implementation to enhance productivity levels and to change the Value system of the employees .This is a mandate as employees be in a better position to internalize the new and emerging technologies and future challenges. The HR function has transformed due to the evolution of the internal and external organizational environment. The focus has shifted from traditional, operational and administrative perspectives to changes in employment relationships and strategic HRM. Presently the contemporary approach of human resources management is to define the relationship between business strategy and human resources management. Moreover, organizations are required to investigate the way in which HRM can be used strategically to achieve organizational goals. Outsourcing is simply getting work from the external sources, which is done previously inside the organization. If external organizations or business entities have specialized in an activity which is not strategically important to businessand is able to do it cost effectively, it is recommended to get it done. Human resources outsourcing: “Human Resource Outsourcing (HRO) is the process of transferring functions of an organization’s human resources management functions or activities to a service provider external to the organization”. Many organizations outsource all or some HR activities because they cannot afford to employ talented part-time or full time employees across all areas of the organization’s operations. Other human resources activities being commonly outsourced include recruitment and selection, remuneration, industrial relations (IR), and occupational health and safety. However, the decision whether to outsource the HR functions or retain depends on the benefits and costs of HR outsourcing and centers around HR needs versus creating internal strengths. There are both Pros and Cons of outsourcing HR activities. outsourcing HR has been increasing, with many organizations choosing to outsource partial or all of their HR activities