1990. Gary Hamel and C.K Prahaoad "Harvard Business Review" entitled "to the nuclear enterprise Heart competitiveness ", first proposed the" outsourcing (outsourcing), "the word. "Outsourcing" the core idea of the internal situation of limited resources, to achieve greater competitive advantage, retain only its most competitive business, and the other business entrusted to the more than their cost advantages and professional advantages of the enterprises. Outsourcing is the first rise in the practice areas, as a management model Early in the 20th century to the 1960s, the United States has arisen, but the real development in the 20th century, after the 1980s, including research and development outsourcing, outsourcing of production, marketing and management outsourcing outsourcing, and so on. Human resources outsourcing as a management outsourcing, is the business of human resources management from non-core part of the work entrusted all or part of human resource services for professional organizations. According to the International Data Corporation (IDC), the In the United States there's a lot of professional PEO (Professional Employer Organ ization), its human resources outsourcing business is a human resources service market, the fastest-growing business. China's human resources outsourcing business is flourishing, in urgent need of outsourcing Theory as the guide. A human resources outsourcing basis of a theory, the transaction cost theory usually under Coase's view, Enterprise is a substitute for the market transaction cost savings an effective way to choose only exists in the enterprise and the market between the two. Williamson's in the 20th century, the early 1980s, proposed a new perspective : "If the internal production of the economy vertical integration of economic, Coordination between independent dealer transactions, the long-term contractual arrangements will emerge, to reduce transaction costs. "in the short-term market transactions between enterprises and effective form of a third -- a long-term contract. If through internalization unable to achieve economies of scale or supervision costs are too high A long-term contract can replace enterprise vertical integration, saving transaction costs. 2, resource-based enterprises based on the concept of enterprise resource concept that the competitive advantages derived from the enterprise control of strategic resources. Enterprises should focus our energies on strategic resources for the greatest role to play. Outsourcing is the "non-strategic resources" into the market, and focus on "strategic resources" to obtain sustainable competitive advantage. 3, the core competitiveness of the core competitiveness theory generally refers to enterprises linked to the strategic positioning, for the enterprises to maintain sustainable competitive advantage capabilities. Outsourcing is to preserve the enterprise's core competitiveness. and will not have a competitive advantage in business entrusted to the more than their cost advantages and professional advantages to the enterprises. 2. human resources outsourcing analysis of the advantages and risks weigh (1) human resources outsourcing analysis of the advantages in choosing outsourcing enterprises, For three main motivation, this is the advantage of outsourcing. An upgrade of the strategic role of the human resources department as human resources for enterprises of strategic importance, Enterprises require the management of human resources departments more strategic and flexibility. Human resources outsourcing can enable enterprises to human resources managers from the operational and practical work liberated, energy, time for strategic thinking needed to enhance the competitiveness of human resources and so on. Studies indicate that human resources management activities for the business activities or traditional activities, usually of the total human resources management activities 65%-76%. and the direct impact on the long-term development of strategic human resource management activities accounted for only 30%. If the human resources outsourcing, it is generally believed that at least 50% -60% by reducing transaction human resources work load, the focus has switched to focus on the strategic development of human resources functions. 2. access to advanced technology and integration with external superb skills of human resources specialists, the development of information technology human resources operation has also We must intensify electronic human resources management procedures, the relevant application software and platform technology investment. And through outsourcing, enterprises can make full use of outsourced services provided by the latest technology and systems. Meanwhile, outsourcing service providers have been trained for all kinds of enterprises to provide human resources outsourcing services staff. In today's market, with pay and fringe benefits, Expatriates and human resources information systems expertise to the shortage of human resources specialists, Employment and human resources services are normally more than a few experts Employment easier. 3, lowering operating costs and improve the performance of human resources activities has always been as a major cost center, Outsourcing can be adopted to streamline internal human resources functions, with a better cost-effectiveness of the staff satisfaction of human resources services. Although the use of outsourcing service providers need to pay, but can often provide a better quality of services, while costs than employment or use of a large number of human resources functions of these officers to do the work of the lower cost. Also, can be reduced through outsourcing enterprise human resources information management must support a large number of platforms, and other technology investments. can also eliminate or at least reduce its day-to-day office budget or expensive capital expenditures. So operating costs will fall, relative to improve operating efficiency. (2) human resources outsourcing risk measurement Although outsourcing can bring benefits to the enterprise. But while there may be outsourced risk. 1. Outsourcing may have raised an additional cost. Enterprises in determining which human resources should be outsourced, they often need to go through certain procedures in the assessment, In determining outsourcing business, also need to choose a suitable outsourcing companies, which are new enterprises cost. 2. Outsourcing the process of poor communication between the employees will cause the resistance to change. In the decision of one or more human resources outsourcing of functions, Some human resources staff may face the threat of losing their jobs. Meanwhile enterprises will lose the day-to-day human resources management and employees interact with the control. 3, outsourcing security issues. At present, there is no perfect laws and regulations to standardize the main outsourcing and outsourcing partners between the rights and obligations Outsourcing of services makes it difficult to safety can be guaranteed. 4, human resources outsourcing discriminant model to human resources outsourcing model is discrimination, decide which activities should be human resources within and outside of what should be (outsourcing). According to previous theoretical basis, we have chosen two criteria to evaluate human resource activities, to determine the outsourcing business. The first is the standard of value, it can be defined human resources activities in high-value and low-value this context. High-value refers to achieve organizational objectives have a direct role in the activities of low-value services is a management activities. Human resources activities of the value depends on whether it can help organizations achieve competitive advantage and development of core competencies. Values embodied by the buyer to the seller to deliver goods or services are willing to pay for value. Human resources "client" is the beneficiary of human resources services broad groups, such as managers, employees, job-seekers, contracts and cooperative partners. "Customers" greater benefits, human resources activities of higher value. Clearly, those enterprises should be the high value of human resources activities of the internal and external value of the low. The second is a unique standard, it can be passed human resources activities to define the unique nature of the high and low uniqueness of this area. GAO refers to the unique nature of the organization is a very special event, a low unique is the day-to-day activities. Human resources activities of the unique nature of organizations is the unique nature of internal and external rarity. Organization should internalize activities mainly those below the cost of implementing the use of external resources (such as market relations) the costs incurred situation status. For some special organizations certain unique human resources activities, with the existing market is not directly available resources, dependent on external resources may not be feasible or may require additional cost. The market for scarce resources, if the use of external resources to obtain high costs, it will lower its strategic value. Similarly, the number of common and standardized human resource activities, if spent more internal costs, it will not have strategic value. If the unique nature of the X-coordinate in value for the longitudinal coordinates nature can build human resource structure of the two-dimensional framework. As shown in figure 1. Figure first quadrant : core activities. If the human resources activities is a high-value high is unique, hailed for its core activities. Generally, the core activities of the external market is very difficult to get, it should be within the organization, to gain a competitive advantage. Quadrant II : traditional activities. If the human resources is a unique high-value but low, as traditional activities. Traditional activities of the organization may be very important, but usually routine. Rich external supply of advanced information technology and mature human resources software and databases. for such activities outside of a lot of choices, usually there is no need within the organization planning these activities. Quadrant III :-core activities. If the human resources activities of the value and uniqueness are low, claimed outside its nuclear activities. - Core activities planning and implementation of key information, procedures, methods, tools, often in the common industry standards, Design standardized by the ISO document, the external market may be more efficient in providing such services, Therefore, these activities should be organized externalities. For example, an increasing number of organizations will staff salaries, benefits and pensions paid, using some of the specialized institutions (such as banks), because these business activities (low uniqueness) to increase the competitive edge can not afford a direct role (low value). Part IV quadrant : special events. If the human resources activities with high unique but a low value, known as special events. Special activities for the unique nature tend to be more obvious, but its value is often determined by the unique nature. The special activities that should integrate business strategy and human resources strategy is to determine a set or outsourcing. Concluding remarks era of the knowledge economy, human resources title enterprises of strategic resources, the human resources department at outsourcing non-core business. thus enabling enterprises to concentrate on strategic human resources capacity-building functions, is the general trend. Enterprises as the main human resources outsourcing, which should further strengthen the human resources outsourcing awareness and understanding give full play to the role of outsourcing, so that enterprises can better development.