The objective of the study is to represent the current state of outsourcing of Human Resource functions at
telecommunication sector in Bangladesh. Specifically, the study addresses the issues of when and under what
circumstances does HR outsourcing contribute value to the companies by attempting to identify environmental
and organizational characteristics that affect HR department performance and how HR outsourcing mediates that
relationship in service organization like telecommunication sector. It tries to find out the relationship between
outsourcing and numbers of employees within the organization and also shows the relationship between
outsourcing and number of employees in HR department. Most of the companies are highly interested to
outsource recruitment and selection functions whereas temporary staffing is in the least position for outsourcing.
Companies show maximum satisfaction to improve in service quality due to outsourcing HR functions but in
some extent it reduces the effectiveness of human capital management.