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Nowadays companies from all over the world are extensively using HR outsorcing which is one of the most effective management tools. It is used as means to grow company’s financial potence and competitiveness.

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Outsourcing benefits in the present situation

Current state of affairs in our country affects all the businesses to more or less degree. However it is obvious that each owner and CEO faces the necessity to reduce costs without undermining production capacities of the company.

Even in periods of trial companies are doing their best to keep conditions stable for the key players of their teams, as risks to lose them are higher than funds being spent. Surely “belt tightening” first and forest related to non-core (non-production, logistic, production) staff, load of which is mostly depends on manufacturing facility utilization and, correspondently, underutilization. Forced decision to reduce non-core staff brings next task – what are the resources to perform their functions? Situation looks similar in case manufacturing facility underload – it is not feasible to have big-scale non-core staff in manning table, but it is certain demand for their work. Solution which can be really useful in such circumstances is required staff outsourcing as necessary.

Let me tell in details about cooperation with outsourcing companies and benefits you’ll have in case make the decision to use this way to save company costs:

  1. The following staff segments: non-core, logistic, production, technical IT outsourcing staff, that is those staff segments which are not in continuous demand and it is not feasible to have them on staff in cost saving operation or staff which is not featured with high qualification and long-term adaptation, for example production and logistic linear staff. Also additional staff engagement for seasonal activities, short-run projects without staff expansion.
  2. Flexibility – making contract with outsourcing company the Customer orders staff completely in line with demands specified in requisition sent to provider which contains number of specified qualification staff in demand for specifi period of time. That means in case Customer does not demand staff, the Contract does not bind it to use outsourcing partner services.
  3. Service payment – let us emphasise that outsourcing companies charge services fee upon executed work; moreover in case company has shown itself as reliable and financially reliable, we can consider payment grace perios, allowing the Customer to mitigate risks connected with advance payment and even bolster its profit margins from money flows redistribution and using them for other needs during charge graceful period for the services which have already been rendered.
  4. Possibility to assign expenses to engaged outsourced staff to “service” expenditures item and in case outsourcing provider in VAT payer – to receive proportional amount of tax credit against VAT.
  5. Payroll budget tax load reduction and HR administration costs cutting.

Surely above listed benefits got by Customer when using outsourcing company services do not cover all the issues, but it gives general idea and understanding of the fact that outsourcing is an efficient tool in business optimization allowing to mitigate own risks. And the most important task here is to select reliable partner taking as criterion its long-term cooperation with leaders of certain industry branches, customer-focus and transparency.

Good luck to your choice and prosperity to your business!

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