Outsourcing means transferring a part of an organization’s activities to an external person, team or company and using their resources and services according to an agreed and specific contract, instead of doing that activity inside the organization. Sometimes a company or group does not have the time, budget, equipment or expertise to do something. Therefore, it assigns that particular action to another organization, which has been outsourced in such circumstances. Usually, things other than the main activities of organizations are outsourced. A common example of outsourcing is hiring a company or third party to perform tasks such as programming, website design, accounting and taxation, human resource management, purchasing and sales, manufacturing, shipping, customer support, etc. In fact, outsourcing is considered as a strategic solution for organizations so that they can reduce their costs and improve their efficiency and performance by taking advantage of it.
Outsourcing can be done in two ways: service outsourcing and process outsourcing. In service outsourcing, the organization entrusts activities such as accounting, research and development, technical support and marketing to companies that specialize in that field of activity. In process outsourcing, the company entrusts a part of its processes, such as a part of the production process, distribution, human resources management, or financial affairs management, to a company that specializes in that field of activity.
Outsourcing is currently popular in many large industries and prominent companies in the world, and due to its benefits, it is predicted that it will be welcomed by a larger percentage of businesses in the near future.
outsourcing of human resources;
Human resource management outsourcing, which is one of the most efficient types of outsourcing, is considered one of the strategic methods of human resource management, in which an independent service company that specializes in this field, is part of the processes and activities related to human resource management. An organization or takes over all its operations. This process can be of great help to small and medium-sized companies because they do not have enough facilities and resources to carry out all HR-related activities. Also, the outsourcing of human resource management can also have benefits for large companies, including reducing administrative costs, increasing the focus on the organization’s core activities, and using the expertise and experiences of professionals in this field. Hamyar Niroo Alborz is one of these companies that, as the first and largest provider of this service in Iran, supports businesses and employers in this way by maintaining high quality standards and a 98% satisfaction rate.
Some of the reasons that make organizations consider outsourcing their human resources are:
Cost reduction and budget management:
Outsourcing human resources management can reduce your costs due to its economic mechanism, because in the first step, you no longer need to hire several permanent and full-time workers to handle this. Also, human resource management is naturally done at a lower cost by outsourcing it to foreign companies, which, as a result, reduces the costs of your organization. Outsourcing of human resources can help organizations to reduce costs related to informing, recruiting, hiring, managing employee rights and benefits, and dealing with issues such as management supervision of employee performance, training, dealing with issues such as calculations and health insurance registration. , reduce their taxes, pension levels, etc.
Saving time and focusing on the main business activities:
By outsourcing activities such as accounting, human resource management, technical support, etc., and performing them by foreign companies, organizations will focus more on performing core activities such as production and marketing of their products and services.
Increasing agility and flexibility:
By outsourcing human resources, organizations can quickly receive these forces when there is a shortage of labor due to market changes and customer requirements, and by performing such activities by other companies, they can increase their agility and flexibility to changes.
Improving efficiency and quality:
Human resource outsourcing can help businesses to increase the quality and efficiency of their organization’s processes in two ways. Because in the first place, companies that provide human resources outsourcing services implement the best methods and most effective approaches in this field due to their focus on providing these services. Also, by outsourcing part of the organization’s operations, employers’ focus on the company’s core activities has increased, which can help improve productivity and higher production, which will result in more profitability.
However, outsourcing human resources may be associated with challenges such as communication and management problems with foreign companies, security issues such as disclosure of confidential information, etc. It should also be noted that choosing the right company for outsourcing is very important. The company that is chosen for outsourcing must have enough expertise and experience to make organizations benefit from all the benefits of outsourcing and as a side benefit, help organizations perform better in the competitive market. Therefore, in order to outsource human resource management, you need to carefully examine the company you want and choose the best.
Some other benefits of outsourcing human resources:
- Using specialized knowledge and experience of the private sector
- Increasing the speed of work, eliminating administrative bureaucracy
- Increasing the power of competition in order to increase the quality of services
- Eliminate the need for a larger space for the organization
- Improving the quantity and quality of works
- Managing the arrival and departure of seasonal personnel at different times
- Follow-up of personnel work relations in offices and legal authorities
- Reducing operational costs and increasing productivity
- Increasing the productivity of the organization’s human resources by focusing on the main activities
