Today, organizations can hire their employees directly or outsource. But what is it and what benefits does it provide? Continue reading this article to find the answer to this frequently asked question.

This information is useful for accountants, administrators, HR managers, businessmen, and tax and financial advisors as it allows them to learn important concepts to decide whether to contract this type of service. Outsourcing will actively continue its growth.  If we analyze the statistics of Grandview research, we can conclude that the global business process outsourcing market is expected to reach $525 billion by 2030. So its implementation will be good for any business and company.

What does outsourcing mean?

Outsourcing consists of subcontracting personnel or some other payroll goods or services. This type of outsourcing solves the problem of recruiting, hiring, and even training personnel in an organization. This technique allows the company to save resources in the personnel sphere. This is necessary so that this personnel is immersed in other processes of the company.

It becomes easy to understand and use this scheme, but it is necessary to know it thoroughly, especially since you must make sure that the company with which you are going to conclude a contract operates following the principles established by law.

Outsourcing services involves the conclusion of a contract and allows you to reduce costs, optimize processes and reduce the administrative burden on staff.

What is personnel subcontracting or outsourcing?

Outsourcing is hiring staff through a third-party company. In other words, these are companies that are looking for talent and hiring staff for other companies. Organizations choosing this methodology should make sure to take extra care and check all legal, tax, and labor issues.

Cost Benefit Analysis

Before thinking about subcontract personnel, there are several aspects to consider, including:

  • Economic benefit from using an outsourcing company.
  • Case studies of working with clients, recommendations, and experience of the company to be hired.
  • Determine the importance of the area or function you want to outsource.

Now consider the advantages and disadvantages of this issue.


Organizations reduce the cost and time of hiring when they are not aware of the selection and recruitment processes.

Allows you to allocate more budget to improve performance.

This allows the company to have the best technology without investing in the training of its staff.

Subcontracting helps a lot to integrate specialized staff.

In case of a need for personnel from abroad, it is facilitated to hire them.

Recruiting outsourcing has standardized processes that allow you to find similar profiles for different areas in less time.


If the subcontracting company does not comply with the rules established by the relevant laws, the employer assumes full responsibility for the subcontracted workers.

Against this background, employees do not have opportunities for promotion and there are no labor benefits and incentives.

Jobs in the company are limited.

There is a risk that employees will not pay taxes or social security contributions on time.

When a company subcontracts its employees, it has no control over the candidates being interviewed or the hiring process.

Before applying this technique in your company, familiarize yourself with all the advantages and features in detail. By choosing the right outsourcing company, such as, you can avoid risks and reap a huge number of benefits.