Recruitment Trends for 2020: Outsourcing for your Company

Outsourcing has helped many companies expand while effectively reducing their overhead costs, by giving certain tasks to third parties and focusing their in-house resources on what they are exceptionally good at.

There is a huge benefit from using economies of scale for specialist suppliers, or using cheap labour overseas, companies are able to optimise their profit significantly. The global market size of outsourced services reached USD $86 billion in 2018.


The most commonly outsourced HR functions in 2019

  • Temporary recruitment solutions.
  • High-volume recruitment.
  • Background checks & drug screening.
  • Relocation.
  • Payroll & compensation implementation & processing.
  • Staff coaching & training.
  • The creation of updating employee handbooks and policy manuals.
  • Independent contractor compliance.

While outsourcing isn’t always a success, reports show that businesses are getting smarter at outsourcing. A 2018 study Deloitte found that following a visible shift towards in-sourcing during 2016, companies are not keeping responsibilities internally; rather they are enhancing their relationships through the use of partnerships and refining their flexibility with operations.


Outsourcing isn’t for everyone

Not everyone is convinced about outsourcing going into 2020. Globalisation has perhaps developed at a pace where companies cannot keep up at a satisfactory level and clients can suffer by receiving sub-par products and services. The other problem with outsourcing it cannot save a business as much money as they first anticipated.

When outsourcing something, the general rule should be that the customer should not be able to see any difference in quality. An example of this was when banks outsourced their customer support to cheap labour in Eastern Europe and abroad.

Is it time for companies to look again at in house sourcing? Some say yes, however the huge shift to remote working jobs published in 2019 says otherwise. To some extent, western companies appear to be bringing it back to using in-house resources; however the problem lies with finding enough skilled individuals, as studies show there is currently a 50% larger salary budget for starting an office within Western Europe and London than Asia and Western Europe.

While the outsourcing trends appears to be strong within the HR sector, the largest industry for outsourcing specialists is in IT due to the highly skilled requirements and low cost of labour in India.

Contact us for any HR our outsourcing options for your company, we have local specialists who would be happy to speak with you.