Irish businesses are going through tough times at the moment, but one industry that is particularly thriving is outsourcing. As organisations realize that they need greater flexibility, outsourcing certain functions allows them to move away from administration, and focus their resources more on strategic actions that drive growth.

Human Resources, therefore, is an area that businesses are increasingly looking to outsource. In fact, large businesses have been doing it through the boom years, and are continuing into these years of austerity. But small businesses, right through from one-man-bands to growing businesses of around 200 employees, are all seeing that they can derive some real value from outsourcing.

So how do you find the right HR partner for your business? After all, there are so many of them, how do you wade through all the options?

1) Size matters

It's a cliche, but it's true – size really does matter. If you're a small organisation, partnering with a multinational outsourcer might not work for you. Where will their focus be? Try to find an organisation that will appreciate your business.

2) Clients matter

Your business may not be unique, but your industry certainly is. For example, human resources and payroll in the retail industry is handled very differently from within the financial services industry – retail has shift patterns and labour laws that are entirely different from how people work in banks and investment companies. So look at their client profile, get some testimonials, and understand how well they know your industry.

3) People matter

If you're outsourcing your administration to another business, better find out who is doing the job. Never mind the patter of the salesman – he'll be long gone once you've signed the contract – meet the team. Go there and find out what they're like, read their CVs and understand them – make sure they understand you.

So if you're looking to cut down your costs or streamline your business – now is the time – but make sure you investigate your outsourcing partner fully.

Morgan Danaher is Services Director at Ceridian Ireland, a leading provider of Irish Payroll Services.