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This dissertation aims at studying the contribution of HR consultant companies in improving organizational performance and leading to growth of organizations. The report also aims identifying the challenges faced by human resource consultants in dealing with organizations in the business world. Hiring human resource consultants brings about a number of benefits for organizations as they have the expertise and knowledge of effectively utilizing the human resources of the organization. Therefore, the contribution of human resource consultants improves the performance of the employees, the performance of the organization, increases commitment of employees towards organizational goals and improves the relationship between the management and the employees.