It’s common in the IT field: outsourcing operations to India. But will companies want someone overseas to handle HR processes? Some outsourcing firms seem to think so.

A few big, India-based tech outsourcing firms have started or are going to start going after the HR market. (Read more here).

Of course there are some disadvantages to handing HR over to an offshore firm. Many of them are magnifications of the disadvantages to outsourcing in general. Unlike IT, handling HR duties requires a good understanding of an organization’s culture. Also, many companies are wary of letting offshore firms handle employees’ personal data.

Then, of course, there are the legal concerns that are central to HR’s role. American employment laws are tough to understand even for many people in this country, not to mention someone on a different continent.

One thing this means for small and medium companies is it may drive prices down for HR outsourcing in general. Many domestic outsourcing firms are already going after the mid-market. Indian firms can offer services for relatively cheap, and if they start to make waves over here, prices across the board may fall, giving mid-sized companies even more options if they want to outsource.