Labor outsourcing: Main benefits and challenges for companies

By hiring an employment outsourcing service, it is possible to streamline the recruiting process so that companies can focus 100% on the core of their business.

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What is job outsourcing

Outsourcing consists of the subcontracting of personnel for an organization through an external company.

Currently, there are different employment outsourcing companies (also called human resources organizations) that are exclusively dedicated to offering human capital services . Its function is to hire personnel to carry out the necessary activities and tasks within the client.

Basically outsourcing is a direct contract with a company in which it undertakes to supply the necessary collaborators according to needs. The main difference with the traditional hiring method is that here the employees are not hired directly, but the outsourcing companies are in charge of supplying your labor needs.

Companies that provide outsourcing solutions are exclusively dedicated to finding talent and staff. Usually this type of service consists of the stages of selection, recruitment, hiring and training of personnel.

Likewise, they are dedicated to identifying the best candidates for each client, taking care to find the profile with the best compatibility for each vacancy. Their goal is to be able to guarantee the perfect job match in each case, uniting people with challenges.

Today the option of opting for a labor outsourcing solution allows reducing costs, streamlining search processes and reducing administrative burdens on staff.

Externalización de empleo.

Outsourcing Companies: Benefits for Organizations

One of the main advantages of business outsourcing companies is that they help to reduce the staff turnover rate, help reduce and control operational expenses and increase the quality of candidates.

In the same way, outsourcing companies help their clients reduce hiring costs, generate improvements in business productivity and transfer risk to third parties.

One of the keys in hiring outsourced personnel by renowned companies is that, having all their standardized processes and a large contact database, added to a vast experience in the field, they can quickly find a large number of profiles related to various areas in a short time.

Another of the main advantages of opting for a business outsourcing solution is that it allows the company to respond quickly to changes in the environment. In this sense, it is interesting how outsourcing provides flexibility to the business, since it is possible to adapt the size and cost of operations to the prevailing market conditions.

When it comes to the type of industries that use outsourcing services the most, IT is at the top of the ranking. It is estimated that, in the case of Argentina, per year, there are at least 5,000 unfilled positions, which represents an increasingly great challenge to obtain trained personnel for companies.

Given that every time more technical and specialized profiles are required , it is necessary to have a company of IT outsourcing to ensure you get the best candidates in record time.

IT Outsourcing: Today's Challenges

It is estimated that each year in Latin America there are more than 450,000 vacant positions in the software industry. Projections indicate that by 2025, more than 1.2 million programmers will be needed in the region.  

In Argentina, IT profiles continue to be the most required by companies . Currently, developer, technical support and scrum masters positions are the most sought after by Argentine companies. The roles of Full Stack Web developers, site reliability engineers and Data Scientist, among others, are also requested.

As there is a high demand within the IT sector and a supply of candidates that does not fill vacancies, in the world of information technology it is more necessary to resort to the services of a labor outsourcing company.

A curious fact for recruiters is that the knowledge industry (whose axis is to transform information into knowledge to generate value and wealth) represents the third exporting pole of the country in Argentina, behind the soybean and automotive sector. 

Software development is one of the fastest growing branches in terms of job creation at the worldwide and this is a fact that must be taken into account by recruiters.

Outsourcing informático.

Outsourced personnel: Main challenges of this modality

The outsourcing of personnel can suppose certain inconveniences for the company and also for the collaborators. One of the main disadvantages of this type of service appears when the outsourcing company is not within the guidelines established by local laws.

That is why it is important that before choosing to hire a company specialized in recruiting talents, it is always recommended to investigate the company's background and identify which clients it worked with and what their experiences were. Within the outsourcing business, trust is an invaluable stepping stone.

Another of the main problems that the client can face is that, since the collaborator is not technically part of the company's payroll, they can be changed position or company, causing a high rate of staff turnover.

Likewise, many employees who were hired by an outsourcing company may not feel fully part of the company since they are under temporary contract. This can lead to the employee trying to change jobs, securing a fixed position in another company.

Outsourcing companies: to hire their services or not to hire?

In general, outsourcing is chosen when personnel are needed and the main focus of the company is not related to the recruitment of personnel. In the same sense, when a large flow of collaborators is needed for a project it is also common to resort to outsourcing.

Second, to resort to outsourcing it is necessary to identify the cost / benefit of the service. Outsourcing is often justified when the company needs a specific service for a service, for example, in an IT project or a legal department.

Another point to keep in mind is that there are different styles or degrees of outsourcing. On the one hand, there are total outsourcing services where all the functions of the human resources area are delegated to 100%, defining the guidelines and priorities jointly with the directors of the company.

And on the other hand, there is a partial outsourced staff service where the company only deals with recruitment and administrative matters. In this scenario, there are no guidelines on the part of the outsourcing team for the collaborator.

Generally the second style of outsourcing companies is usually more convenient and economical than the first , especially for those companies that want to try outsourcing for the first time.

Managing human talent through a specialized company can mean the beginning of success, as it will be accompanied by the application of the best HR practices. HH and increases the chances of hitting the hiring. In short, allows you to optimize available resources to achieve business objectives.