Like many things that took place in the last century, the idea of outsourcing was made more prominently first from the United States, especially among the big corporations. They realised they could sharpen their focus by letting specialised service providers handle tasks like payroll processing, recruitment, training, benefits & compensation etc. This led to the early adopters to move from Traditional to Strategic, to then Transformational Outsourcing.
A Trusted Extension
Fast forward to 2023, HR outsourcing is no longer confined to only a couple of services, instead it encompasses a wide range of options including consulting and technology integration. But given outsourcing’s provenance, the industry is now poised for a warp speed expansion since technology is more readily able to go from zero to completion in almost a split second (p/s: we’ll talk more about this in my next blog). At the same time, companies are also looking at outsourcing vendors as an extension of their HR departments, not just ordinary suppliers. This relationship is in fact being redefined around the world because clients are critically needing more and more intelligent support from trusted vendors and not one who only bills them for the services rendered.
“In other words, a heightened level of mutual trust and respect now exists between the clients and their preferred HR Outsourcing Partners”
Take one of our new appointments as a Payroll Outsourcing vendor for example. In the beginning, CXL Group was only tasked with the processing of one geographical region’s payroll but the positive experience derived from there motivated the client to expand the scope nationwide. The good news did not stop there as the client also inquired if CXL Group was able to take over some non-HR business processes. Although this may have contributed positively to our bottom line, we had to turn down the request politely so CXL Group could remain focused as an HR Outsourcing vendor.
Par Excellence Parameters
But as a devil’s advocate, one may ask what has CXL Group done that is so compellingly different that makes a client want to come on board?
Just like the cloud kitchen business, although most stakeholders in the market are already familiar with such online platforms ie. facilitate online orders to offline processes (cooking and preparing the meals); the success of the business would however still rely on its timely delivery to the customers, not just once but every single time. As such, without blowing our own trumpet, I believe the answer to this question lies in our dedication to the following areas:
- Changes – CXL Group is not restricted by technology or technical limitations when a client has a pressing need to make changes to the system due to business policies or regulatory updates.
- Systems – from Standard Packages for straightforward clients to fully customisable HR processes for the large and multinational companies, CXL Group has it all under one roof.
- Cloud – for better security and privacy, CXL Group clients are all hosted on private clouds.
- Service – above and beyond technology, CXL Group holds regular monthly meetings with our clients.
- Emergency – all payroll outsourcing clients are assigned with three dedicated CXL Group personnel, led by our Head of Payroll Mardiana Wati.
- Upgrades – CXL Group moves with the technology and at the time of writing, we are eagerly anticipating robotics automation
HR Outsourcing 2024
I believe the future of HR Outsourcing cannot escape from the offline component no matter how robust the service and technology offerings are. Because when policies are amended or when businesses rise or fall, HR matters are still best to be responded to by a human being, not by an email and definitely not through a mobile app notification.
As to what the future holds from 2024, I am seeing more and more companies considering HR & Payroll Outsourcing as part of their business strategy. This is attributed mainly to resource scarcity, which stems from the increasingly complicated nature of payroll and the shortage of payroll experts in the market.
Another is the absence of credible solutions for companies to fall back on should their in-house payroll employee or employees choose to resign. This is a significant risk to any enterprise because a newly hired payroll personnel is unlikely to immediately fill the void left by his/her predecessor due to the unique behaviour of every organisation.
The speed at which technology is moving is also forcing company owners and its top management to sit up, listen and look at alternatives. Whether as a preventative step or as a market expansion or even industry domination strategy, the key is to iron out this facility before it is too late (hint: Covid-19 lockdown & digitalisation).
Whether you’re eyeing cost efficiencies or aiming for transformative organisational agility, discovering the right outsourcing partner is crucial. Connect with us to delve deeper into how our tailored solutions can elevate your HR and operational efficiency.
