What Is Staff Outsourcing?

Staff Outsourcing is, “the strategic use of a Professional Employment Organization (PEO) to support HR functions traditionally handled by an internal HR.

It is a business strategy where organizations contract out major HR functions to specialized and efficient PEO’s. The contractor becomes a critical business partner in supporting the organization to achieve its business objectives.

While exploring strategies to remain competitive, staff outsourcing is the preferred option. It removes the burden of increasing internal headcount while achieving more. Outsourcing additional headcount to a reliable PEO will allow your management team to focus on the core business.

The current global Coronavirus Pandemic (COVID-19) has greatly affected staff outsourcing. Growing unemployment rates have had a direct impact on outsourcing. This clearly seen as companies struggle to remain in business.

Why Do Dompanies Outsource?

1. To reduce costs. Let us take the example of an international engineering company that wants to implement a time-bound project-based assignment overseas. Project implementation would require the deployment of both international and local country resources. In this scenario, outsourcing the services would be a good model to use as it would be extremely expensive to repatriate all the business functions required for project success. These would include, operations, finance, procurement, HR and payroll management.

It would make immense business sense to only repatriate the critical operational teams. All the other non-core functions including HR and payroll management would better off if outsourced to a reliable PEO. This would significantly reduce project costs as opposed to investing in a full project team overseas for only a short period of time.

2. To enable internal resources to focus on the core business functions Using this same example above, the project teams would be completely relieved to focus on the core project functions. Additionally, they would not need to worry about HR compliance overseas. All the other functions below are best handled by a professional outsourcing company.

Recruitment of project personnel Onboarding/ HR relations management of deployed teams Compliance with local employment laws Payroll management and payroll tax compliance Work permits of expatriates working on the project among other critical functions that staff outsourcing agencies take care of All the above are critical requirements that would completely stress the project leadership. Thanks to staff outsourcing, internal project teams only need to focus on project milestones.

Maxpro ltd can outsource any kind of staff both skilled and unskilled. For more information send us an email to info@maxpromalta.com

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