Home / Brand Stories / Companies that outsource HR can save an average of 27.2%: BruntWork

In a recent survey conducted in 2019 by Statistia, a surprising 82% of medium-sized organizations worldwide are choosing to keep their human resources (HR) shared services in-house, relying solely on onshore employees to manage this critical function. Meanwhile, only 10% of large organizations surveyed reported outsourcing their HR shared services, utilizing offshore talent to support their HR needs. However, BruntWork’s CEO Winston Ong believes this trend will flip, as more companies look offshore post pandemic to lower costs in the HR department

Human resources (HR) are at the heart of a company’s operation. However, managing the workforce efficiently and effectively can be easier said than done. According to talent outsourcing firm BruntWork, outsourcing HR roles has become more popular among companies that wish to remain competitive in a fast-changing international business landscape.

BruntWork outlines the emerging trends in HR and why outsourcing remains the practical choice for many companies.

The advantages of outsourcing HR

Based on BruntWork’s internal data, outsourcing can help companies reduce their in-house HR costs by 70%. HR services that can be outsourced include payroll processing, onboarding, and recruitment, among others.

However, the benefits also go beyond monetary. “Outsourcing HR services allows a company to leverage the expertise of an outside service provider without the overhead costs," a spokesperson from BruntWork explains. The overhead costs of an in-house HR team include regular salaries, benefits, work equipment, and other operational expenses.

Accessing external expertise can also help ensure that the company follows all applicable HR laws and regulations. This is particularly important for organisations with employees scattered around the globe since countries may have different legal requirements for employment.

Why many companies are outsourcing HR to the Philippines

Not all offshore companies can handle HR services. Given the confidential and fast-paced nature of the field, it is also crucial to build enough confidence with an outsourcing partner.

The Philippines has consistently ranked highly among the top preferred outsourcing destinations worldwide owing to its large talent pool, high proficiency, relatively lower cost of labor, and cultural compatibility.

With a large population of educated English speakers, international companies can find qualified HR personnel in the country to take on virtual tasks such as recruitment, selection, onboarding, training, and monitoring.

“The offshore company should be able to meet the almost limitless demand for manpower, especially in the HR industry - and the Philippines has been able to deliver its part in the past decade," the BruntWork spokesperson said.

BruntWork is one of today’s leading outsourcing companies with one of its head offices in the Philippines. The company has access to professional and skilled HR specialists from different countries to serve its diverse clientele.

Outsourcing HR services in the future

Outsourcing workforce management will continue to grow in the future, especially as the labour market becomes increasingly competitive. Companies that currently outsource HR can more likely streamline their business processes and prepare for future challenges by focusing on implementing innovative solutions for complex manpower challenges.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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