It could be said that outsourcing may boost motivation in the workforce after one sector commentator claimed the practice allowed businesses to focus on their core goals.

John Grange, business adviser at Business Link, said that during the recession companies should be looking at what value adding activities they were good at as many of these may be "absolutely right" for outsourcing.

"It’s not a distraction from your core so you are letting someone else deal with it, get on with it on your behalf under your management and it leaves you to focus on getting orders," he added.

Mr Grange went on to note that outsourcing could also be cost effective as it was only paid for when businesses needed it.

His comments follow recent research released by the Chartered Institute of Personnel and Development and Leeds University Business School, which revealed just under a third (29 per cent) of businesses are currently making use of HR outsourcing.

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