Outsourcing HR processes is now widespread even among small and medium-sized businesses. Outsourced payroll processing, cloud-based HR systems, job application platforms, and external recruiting service providers can streamline processes and provide access to specialized expertise. From a data protection perspective, however, HR outsourcing is a particularly sensitive issue: personnel files typically contain extensive information about employees and, in some cases, personal data requiring special protection, such as health-related information.
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