According to Illinois-based consulting firm Hewitt Associates, more US firms are outsourcing their personnel or human resources departments to bring down costs and utilize greater expertise.

The firm sampled 129 US companies with almost 2 million employees, and reported that 94 percent of companies outsource at least one human resources function and plan to expand HR outsourcing by 2008.

In the study, 91 percent of companies outsource outplacement services; 89 percent outsource employee-assistance programs; 83 percent outsource management of employees' 401(k) plans; and 68 percent outsource their defined-benefit pension plans.

Additionally, it was found that companies plan to rely on outside specialists to manage other functions such as payroll, recruiting, health and welfare, and global mobility services.