<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=705389681562533&amp;ev=PageView&amp;noscript=1">
whatsappChat

Making the HR outsourcing decision

Companies are looking for new innovations by evaluating where and how they can best discover experienced manpower to add exceptional value to their businesses. While some are still contemplating if outsourcing HR processes is the best way to go, others are backsourcing HR processes.

As streamlined human resource ("HR") processes affect a company’s most valued advantage — its employees — HR professionals need to consider how such processes allow them to efficiently focus on essential actions that result in real strategic value.

Of late, there has been an increasing trend towards outsourcing of functions such as human resources, financial services and IT. While HR outsourcing can be defined in various ways depending on what service and relationship is agreed with the provider, it is often referred to as the act of fully or partially contracting out HR processes to a third party.

In contrast, HR backsourcing is the opposite of outsourcing where outsourced processes are brought back in-house.

Issues for Consideration in HR Outsourcing

Some HR activities that are most often outsourced include payroll, leave and claims. Outsourcing HR processes is like a double-edged sword; it can generate positive outcomes when done right or cause you to lose control over a portion of your business if not implemented correctly. The costs of liability and supervising dealings with the outsourcing provider require cautious appraisal. These are variable costs that characterise how the contract should be settled and the dealings with a service provider should be handled to achieve pragmatic outcomes that are in line with your company’s business goals.

The most vital consideration is not how to outsource, but when and why. A company that successfully outsources its HR processes can focus more on its core competencies and enjoy substantial cost savings. As operations may be significantly disrupted during backsourcing due to data migration and reallocation of resources, businesses should adopt outsourcing carefully, with a detailed and properly executed arrangement to ensure its success.

Related Insights

Streamlining Your Non-Profit’s Operations: Payroll Challenge...

Platform Workers Act: Key Implementations and Impacts

Navigating Singapore’s Workplace Fairness Laws

IRAS Year-End Reporting: A Comprehensive Guide for Businesse...

Navigating the Transition from MEPS to DDA with PayrollServe

Recruitment Strategies to Attract and Retain Talent

Streamline Your Business Operations with Payroll Outsourcing

Navigating Flexible Work Arrangements In Singapapore: A Guid...

Can Dependant Pass (DP) holders work in Singapore? A guide t...

Understanding the COMPASS framework

Benefits of employee engagement

PayrollServe now in Malaysia

Problems of running payroll manually

[Malaysia] Tax rate changes 2021

Payroll Processing Cycle Step 2 - Information Cut-off

Amendments to the retirement and re-employment bill 2021

Payroll processing cycle - step 4 & 5: generate payroll ...

Wage Definition

Cloud Payroll Solutions: 3 key concerns for SMEs

6 non-negotiable terms HR must comply

Benefits of payroll outsourcing for growing businesses

Cloud computing

Payroll processing cycle overview

Enhancements in marriage & parenthood package

Announcement: Change of direct debit deduction date

[Malaysia] Statutory rate for employee’s EPF share of contri...

Five reasons why companies outsource their payroll

PayrollServe and Mercer announce strategic partnership to su...

Hong Kong's Employment Ordinance 2021

Information Security Assurance for Financial Institutions th...

News Medisave and CPF Contribution Rates

Job Growth Incentives scheme

Changes in EP and S pass salary criteria

RSM Stone Forest partners French Fintech firm Jenji to push ...

News Latest Statutory Updates Sept 2011 02

516 million dollars in CPF arrears recovered by the CPF boar...

Stiffer penalties for Non-Compliance among Employment Act am...

New scheme for companies to hire more S pass and work permit...

What you need to know about the existing Tech.Pass

Top 4 payroll trends followed by small businesses

Tapping into HR technology for greater productivity and cost...

What is SaaS payroll?

4 key things you must know about payroll operations in Malay...

Common HR pitfalls of small firms

Statutory Update of Work Pass (Effective 1 Sept 2022)

How is payroll outsourcing important to your business?

Payroll processing cycle step 3 - process payroll

Essential payroll compliance in Malaysia and its possible co...

MOM’s tightening of work pass requirements - what does this ...

Extension of the enhanced JSS support

HRM essentials for small, growing firms

Announcement: Extension of JSS for selected sectors, and S P...

Why outsourcing HR and payroll is a smart choice for busines...

CPF submissions using hardcopy forms for e-registered employ...

Is your business compliant with the General Data Protection ...

Adjustments for enhanced JSS From 27 September 2021 to 24 Oc...

Foreign worker levy waiver and rebate extended for construct...

Payroll processing cycle - step 1: collecting information

Building a more inclusive and unbiased workforce

International Businesses can hire foreigners with these Work...

Work Pass required for dependants seeking work

[Malaysia] Statutory updates on new amendments to the first ...

Update on progressive wage model for retail workers

What is human resource & payroll administration?

Payrollserve’s Appointment as Approved HR Service Provider O...

PayrollServe is now abs OSPAR-Certified to serve Financial I...

Singapore Budget - Jobs Credit Scheme

Payroll processing cycle - step 6: processing salary credit ...

Benefits of Effective Human Resource Management (HRM)

Key changes to Employment Act (with effect from 1 April 2019...

How SMEs may cope with increasing complexity in payroll proc...

Extension of Jobs Growth Incentive (JGI) scheme to March 202...

Extension of Job Growth Incentive scheme

Statutory updates under Malaysia Budget 2022

MOM announces points based assessment framework for EP candi...

[Malaysia] PayrollServe Malaysia latest statutory developmen...

Budget 2020 – HR & payroll-centric updates

S pass salary criteria (with effect from 1 January 2019)

Strategic importance of Human Resource management to busines...

Why should companies outsource payroll activities?

Contract of Service

PayDay! SaaS vs manual payroll calculation

Submission of employment income for YA 2023 via AIS Applicat...

New progression wage model for waste management workers

Streamlining Your Non-Profit’s Operations: Payroll Challenge...

Platform Workers Act: Key Implementations and Impacts

Navigating Singapore’s Workplace Fairness Laws

IRAS Year-End Reporting: A Comprehensive Guide for Businesse...

Navigating the Transition from MEPS to DDA with PayrollServe

Recruitment Strategies to Attract and Retain Talent

Streamline Your Business Operations with Payroll Outsourcing

Navigating Flexible Work Arrangements In Singapapore: A Guid...

Can Dependant Pass (DP) holders work in Singapore? A guide t...

Understanding the COMPASS framework

Benefits of employee engagement

PayrollServe now in Malaysia

Problems of running payroll manually

[Malaysia] Tax rate changes 2021

Payroll Processing Cycle Step 2 - Information Cut-off

Amendments to the retirement and re-employment bill 2021

Payroll processing cycle - step 4 & 5: generate payroll ...

Wage Definition

Cloud Payroll Solutions: 3 key concerns for SMEs

6 non-negotiable terms HR must comply

Benefits of payroll outsourcing for growing businesses

Cloud computing

Payroll processing cycle overview

Enhancements in marriage & parenthood package

Announcement: Change of direct debit deduction date

[Malaysia] Statutory rate for employee’s EPF share of contri...

Five reasons why companies outsource their payroll

PayrollServe and Mercer announce strategic partnership to su...

Hong Kong's Employment Ordinance 2021

Information Security Assurance for Financial Institutions th...

News Medisave and CPF Contribution Rates

Job Growth Incentives scheme

Changes in EP and S pass salary criteria

RSM Stone Forest partners French Fintech firm Jenji to push ...

News Latest Statutory Updates Sept 2011 02

516 million dollars in CPF arrears recovered by the CPF boar...

Stiffer penalties for Non-Compliance among Employment Act am...

New scheme for companies to hire more S pass and work permit...

What you need to know about the existing Tech.Pass

Top 4 payroll trends followed by small businesses

Tapping into HR technology for greater productivity and cost...

What is SaaS payroll?

4 key things you must know about payroll operations in Malay...

Common HR pitfalls of small firms

Statutory Update of Work Pass (Effective 1 Sept 2022)

How is payroll outsourcing important to your business?

Payroll processing cycle step 3 - process payroll

Essential payroll compliance in Malaysia and its possible co...

MOM’s tightening of work pass requirements - what does this ...

Extension of the enhanced JSS support

HRM essentials for small, growing firms

Announcement: Extension of JSS for selected sectors, and S P...

Why outsourcing HR and payroll is a smart choice for busines...

CPF submissions using hardcopy forms for e-registered employ...

Is your business compliant with the General Data Protection ...

Adjustments for enhanced JSS From 27 September 2021 to 24 Oc...

Foreign worker levy waiver and rebate extended for construct...

Payroll processing cycle - step 1: collecting information

Building a more inclusive and unbiased workforce

International Businesses can hire foreigners with these Work...

Work Pass required for dependants seeking work

[Malaysia] Statutory updates on new amendments to the first ...

Update on progressive wage model for retail workers

What is human resource & payroll administration?

Payrollserve’s Appointment as Approved HR Service Provider O...

PayrollServe is now abs OSPAR-Certified to serve Financial I...

Singapore Budget - Jobs Credit Scheme

Payroll processing cycle - step 6: processing salary credit ...

Benefits of Effective Human Resource Management (HRM)

Key changes to Employment Act (with effect from 1 April 2019...

How SMEs may cope with increasing complexity in payroll proc...

Extension of Jobs Growth Incentive (JGI) scheme to March 202...

Extension of Job Growth Incentive scheme

Statutory updates under Malaysia Budget 2022

MOM announces points based assessment framework for EP candi...

[Malaysia] PayrollServe Malaysia latest statutory developmen...

Budget 2020 – HR & payroll-centric updates

S pass salary criteria (with effect from 1 January 2019)

Strategic importance of Human Resource management to busines...

Why should companies outsource payroll activities?

Contract of Service

PayDay! SaaS vs manual payroll calculation

Submission of employment income for YA 2023 via AIS Applicat...

New progression wage model for waste management workers