Human resource outsourcing (HRO) is a strategic choice that managers implement because of a variety of anticipated benefits. The purpose of this qualitative case study was to identify HRO strategies managers used to reduce operating costs while maintaining human resource (HR) effectiveness. Data were collected from semistructured interviews using open-ended questions and a review of company documents. Study participants represented 3 midwestern firms with 50 or more employees. The participants drawn from the population consisted of a minimum of 2 participants per organization who had increased their organization's strategic value using HRO strategies. The transaction cost economics (TCE) theory was the conceptual framework for this study. Data were analyzed using methodological triangulation to identify codes from words, phrases, and sentences using multiple sources to identify recurring themes. Five key themes emerged: outsourcing strategies, outsourced functions, operational costs, organizational effectiveness, and success measurement. The findings of this study may lead to social change by supporting managers in making HRO decisions conducive to reducing operating costs while maintaining HR effectiveness, which might positively impact social change by providing core function jobs to the local community thereby decreasing unemployment rates.