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Why Outsources

Below are reasons why some companies outsource:

1. Cost savings

  • Eliminates cost of initial hardware and software investment and its subsequent maintenance
  • Reduces spending on technology upgrades due to obsolete functionalities and changes in statutory requirements
  • Control operating costs as fewer employees needed to perform these administrative tasks, thus maintaining low headcount.

2. Other indirect time/cost savings

  • Reduces errors from manual handling of data
  • Reduces risks involved in security and confidentiality issues
  • Opportunity cost from redeploying HR resources and investments to other areas
  • Reduce risk of fluctuating employee turnover and the need for recruitment and retraining, thus ensuring a stable operational environment

3. Change in company focus

  • Reduce the time spent on administrative task and to refocus on strategic planning initiatives
  • Reduces financial risks involved in non-compliance of legislative, corporate and technology changes
  • Growing need for companies to leverage on established HR service providers for information and expertise that are not available internally
  • Strategic partnership with HR service providers enable more flexibility and tailor-made solutions for ever-changing operational needs
  • Increase employees satisfaction as a result of more timely and accurate response to their HR issues and queries.

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