Many organizations are increasingly outsourcing business activities. Many HR functions are being outsourced. One recent study suggests that 70% of companies outsource at least one human resource activity. Outsourcing refers to the practice of having another company (a vendor, third-party provider, or consultant) provide services. Outsourcing gives the company access to in-depth expertise and is often more economical as well.. Functions most likely to be outsourced were employee assistance, retirement planning, and outplacement.