Get To Know About HR Outsourcing


Lan Nguyen

Marketing Executive

In this article...

    According to Clutch, 24% of small businesses are opting for HR outsourcing services. The main reason is due to the complexity of HR tasks and the lack of resources to build an in-house HR team. Even large enterprises are following suit to streamline the hiring process. Their HR departments can then focus on crucial duties such as employee well-being, while leaving the tedious paperwork to an agency.  


    If you're wondering what HR outsourcing entails and how it can benefit your company, read on to find out! 


    What is HR outsourcing?  


    HR Outsourcing's definition is hiring a third party (or an external of your company) to manage HR tasks. Those tasks include staffing and recruiting, employee benefits, leave management, performance enablement, payroll, centralized employee records, employee management, and other services. Depending on the company’s needs, they can outsource all the HR-related tasks or focus on one aspect.  


    EV’s expertise focuses on these main areas:   

    • Executive Search: a premium, confidential service for recruiting for senior management roles.  

    • Volume Recruitment: scaling up employee numbers while meeting high demand. 

    • Payroll Service: offers cost-effective payroll outsourcing (salary calculations, expense reimbursements, benefits, adherence to standards, government regulations, and taxes, employee documents) services in Vietnam and Indonesia.  

    • Contract Staffing Service: high-quality employees for temporary and contract positions. We offer contractors and flexible staffing for short and long-term contracts and large-scale projects in a variety of industries. Our database ensures that the correct contract labor is available for businesses.  

    • Market Intelligence and Analysis: EV collaborates with customers to understand their company and sector, assuring the best employer-employee fit. With vast experience in large customer projects, we are broadening our industry skills and networks to give meaningful and informative services.  


    What are the benefits of HR outsourcing?  


    While the true benefit of HR outsourcing is variety, here are some outstanding perks:  

    • Cost saving: Outsourcing can help organizations save money by hiring external labor at lower rates than in-house personnel. Overhead costs such as office space, equipment, training, and reduced taxes.  

    • Improve efficiency: Outsourcing allows firms to focus on their main activities and goals. While professionals handle non-core or peripheral duties. This can improve core function quality and productivity. While freeing up time and resources for innovation and strategic planning.  

    • Boost creativity and innovation: Outsourcing allows you to access the larger talent pool. When outsourcing, your company is no longer limited by the small talent pools and hiring inexperienced candidates.  

    • Scalability and adaptability: Outsourcing allows firms to scale up or down their operations and workforce as needed to respond to changing market demands and customer expectations. This allows them to adapt to new possibilities or challenges without having to make long-term commitments or invest in infrastructure.  

    • Risk management: Outsourcing can assist organizations in mitigating some of the risks and uncertainties that come with running a business, such as legal challenges, regulatory changes, security breaches, or natural disasters. Businesses can decrease their responsibility and exposure while also ensuring compliance with industry standards and best practices by outsourcing some tasks to external suppliers that have more experience and understanding in these areas.  


    Are there any drawbacks of HR outsourcing?  


    Before thinking of signing an HR outsourcing contract, there are some disadvantages you need to be aware of:  

    • Security issues: There are some unavoidable risks when it comes to human resources outsourcing, such as data breaks and leaking personal information. The most effective way to reduce risks is to make sure you have delved into previous customers' testimonials and look out for both negative and positive feedback. If the firm has a security problem, its previous clients may complain about it. 

    • Create distance between the HR department and employees: Outsourcing HR duties might harm employee satisfaction because it reduces interaction between these parties. Companies can outsource non-core tasks or close the distance through regular chat and communications to solve this problem.  

    • Take more time to solve problems: An external department can somewhat take more time to respond to a problem than an in-house department. Which may lead to the employees' dissatisfaction. Keep in mind that the purpose of an HR outsourcing service is to boost employee happiness. Because as we all know, “human” is the most important aspect of human resources. Allowing your employees to express their issues and complaints about the outsourcing service helps you know what is working and what isn't and allows you to address problems as they arise.  




    Research is the crucial part when choosing an HR outsourcing company. By evaluating your company's needs and the service provider’s package, you can choose the most suitable option that can empower your organization beyond imagination.