How HR Companies Can Save Money Through Outsourcing

Those who work in the HR sector are well acquainted with the benefits that outsourcing can bring. After all, if it wasn’t for big businesses increasingly choosing to outsource HR functions, the sector would not be thriving the way that it is today.

Those who understand the outsourcing model, however, are well aware that this is not just a case of salesmanship or spin – outsourcing is a win/win for both sides. The company providing the service gets more business, and the business on the “client” side of the coin derives benefits in terms of reduced cost, better quality of service, fewer distractions to management and so on.

Also read: Corporate Culture: Is It Possible To Outsource?

With that in mind, perhaps HR companies need practice what they preach and look a little more closely at how they can make financial gains through outsourcing non-core activities. A growing number of businesses are deciding to outsource IT functions, and companies like are making it easier than ever for them to do it.

Predominantly, companies are going down this road for reasons of cold, hard cost-saving. With the other manifold benefits, surely it is a no-brainer to look more closely at the financial benefits it can bring.

Saving the Capex

The thing about IT is that it is complex and demanding in terms of capital expenditure costs. It is not just a case of putting the people in place and getting them trained, there is also the interminable equipment, with servers, licenses, software, security protocols and all the rest.

By outsourcing IT services, you reduce or even eliminate the number of IT staff required, meaning a corresponding reduction in training and onboarding costs.

Focus on Core Competencies

As your business grows, so do your IT needs. Managing those demands takes up time and money that would be far more useful being spent on your business. The key to a successful business of any sort is to focus investment on your core competences. And for an HR company, that does not mean in IT. Outsourced services can be adjusted to meet your evolving needs without any need to take your eye off the ball or spend a penny more than you have to.

Also read: Four Experts You Need To Outsource For Your Startup

Cost Effective ROI

A major benefit of investing in outsourced expertise is the immediate access to professional solutions. This reduction in the time taken to plan and undertake a project through to completion pays off in two ways. Primarily, there is the initial cost saving on staff hours. Secondly, faster project completion means that a return on investment will be available much sooner than could have potentially been available without outsourcing to industry experts.

Control Ongoing Costs

The scary thing about IT systems is that they become obsolete so quickly. So all that capex depreciates to nothing in next to no time, and you need to invest again in bigger and better software and equipment. And then you need to send the IT team on yet another training course to understand how to use it. When you outsource, you have far better control and visibility of costs. And the training and development of the experts at the end of the phone is the third party provider’s concern, not yours.

Get What You Pay For

This is probably the most tangible money saving aspect of outsourcing IT. In simple terms, you are “renting” the expertise of the third party provider as and when you need it. That works out a lot cheaper than paying people who, inevitably, will spend a certain amount of time staring out of the window or surfing the net while they wait for the next disaster to drop from the skies.

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