The major information risk to the HR department when outsourcing is used is the potential for violations of confidential employee data.

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When outsourcing HR functions, confidential employee data such as social security numbers, bank account information, and performance evaluations may be shared with third-party vendors. If proper security measures are not in place, there is a risk of a data breach which could result in legal and financial consequences for the company. Protection of employee information is a critical responsibility of HR departments and should be carefully managed when outsourcing.

The Major Information Risk to the HR Department When Outsourcing