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In today’s rapidly changing business environment, an efficient and effective organization wins, and that means having people who fit your needs perfectly when you need them. As a leading company in Vietnam operating in the field of HR consulting and providing HR outsourcing service, we can help you find, evaluate, hire, and manage your workforce and make sure you have the right people for your upcoming projects, filling the temporary vacancy, meeting seasonal requirements and reducing your workforce during slow periods

Contact us to see how NIC Global can save you time, money, and find you highly qualified employees ready to do the job

outsourcing service

What Is Outsourcing?

In a nutshell, outsourcing is an accepted management tool for restructuring and refocusing the way an organization does business. It challenges management to build a more flexible organization centered on the core competencies of the business. In making the determination that a business has more to gain by having certain “non-core” aspects of the business outsourced to a third-party service provider, the organization transfers responsibility for one or more activities or functions that would normally be performed in-house to a qualified vendor, for a specified period of time and at a negotiated fee, in accordance with terms stipulated in a service level agreement (SLA). In essence, the organization is making a decision to send certain parts of the business out to a provider whose “core competency” is that part of the business.

Types of HR Outsourcing

In the past, HR outsourcing was thought of as hiring a vendor to provide a service. With the new focus on outsourcing, there is more of an opportunity to partner with the vendor to provide the service on a longer-term basis rather than just a one-time vendor contract. HR outsourcing can include:

Discrete services: In this instance, one element of a business process or a single set of high-volume repetitive functions is outsourced to a third-party administrator. Examples of discrete services could include the annual open enrollment process, flexible spending accounts or employee background checks.

Multi-process services: The complete outsourcing of one or more functional human resource processes would be an example of multi-process outsourcing (also called blended services). As such, the outsourcing of either health and welfare benefits administration or payroll administration, employment contract to a third-party administrator would be an example of multi-process or blended services outsourcing.

Total HR outsourcing: Total HR outsourcing represents the transfer of the majority of HR services to a third party, including recruitment, payroll, HRIS, benefits, compensation and communications, as well as the transition of HR management and staff. However, HR executive management would normally remain in place within the organization, along with strategic planning related to people management and other key HR functions at the discretion of management.

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Why should use Outsource HR?

According to a recent study on HRO in government organizations, while HR outsourcing in the public sector is significantly less common than in the private sector, the rationale for outsourcing is essentially the same. Three basic financial drivers behind HRO are noted:

  • To save money (ongoing expenditures).
  • To avoid capital outlay (often a more important consideration than direct cost savings).
  • To turn a fixed cost into a variable one (i.e., if the workforce shrinks, HR costs can be reduced accordingly)

HRO is not just about cost savings. HRO is, in many ways, forcing a change in how HR does business by making HR business leaders refocus on what is important to the organization. For those organizations serious about getting out from under the yoke of transaction-based HR processing and reaping strategic value from the HRO process, repositioning HR within the organization through multi-process or second-generation HRO means that:

  • The diversity and quality of HR services will be enhanced.
  • HR staff can now have more time to focus on core business functions.
  • HR staff can utilize internal resources more effectively and efficiently.
  • HR staff will have access to subject-matter expertise not previously available in-house.

For more information, please contact us today