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March 2019 | Outsourcing Blog | BPO Industry Updates and Articles

4 Signs Your Business Needs HR Outsourcing

by: Sidney Liquigan

Thursday, March 14, 2019 | Comments (0)

Category: Outsourcing Research / Trends

Many businesses, especially startups and SMEs, only have a few people running the operations—sometimes even run by only one entrepreneur. And more often than not, these people are not human resource experts and are more skilled on the business side of things.

At first you may be doing okay handling and taking care of your people; but in the long run, handling the complex HR process from recruitment, onboarding, and training up to payroll, benefits, and other employee programs can get overwhelming and may affect other parts of your operations.

Here are the signs you need to look out for to know when it's time to outsource your HR.

Difficulty in Keeping Up with Employment Regulations

Employment regulations and requirements always change or get updated, and non-compliance can result in fines or and legal issues. Despite having in-house HR staff, it can still be overwhelming to stay on top of these, especially if you are planning to expand to other places or countries. Outsourcing to an HR outsourcing provider ensures that you have a dedicated outsourced HR team that has extensive expertise in employment laws and other HR matters. Outsourcing companies that offer HR outsourcing also have the right, up-to-date resources and technology.

Cost Cutting

Outsourcing non-revenue generating operations, such as back-office functions like HR, is cost effective and brings efficiency to your business. The costs you will get to save will not only come from overhead and infrastructure expenses, but also from the technology and streamlined system that the outsourced HR provider offers. Having an all-in-one, centralized HR information system simplifies processes, thus improving productivity.

Growing Business

Part of the growing pains of a business is the struggle to keep it together while keeping up with the increasing demands. Instead of dedicating your time and energy to coming up with strategies to keep the momentum and improve it even more, you're stuck with HR functions such hiring more people, processing payroll, and more. Growing businesses can benefit from outsourcing their back office functions, including HR. Not only you get more time to focus on your business' bottom line, but you also save on costs so you can allocate more money to core operations.

Inability to Attract and Retain Employees

Talents will be more encouraged to apply to your company and stay longer if you provide a comprehensive benefits package as well as satisfying employee management and engagement programs. Your HR outsourcing partner has all the skills and resources to take care of these for you. It's also important to nurture your employee's development. HR outsourcing services include Learning & Development (L&D), which could help you tailor and deliver training programs for your employees.


MicroSourcing offers end-to-end recruitment and HR outsourcing services, from talent acquisition to talent management and retention.

When your business is growing rapidly, it's not only the products or services development and the marketing you should prioritize. Customer service is also a priority as your customers are the ones bringing you business.

Start-ups typically have the tendency to overlook customer service to focus on other priorities and this can become an issue over time. Especially when your business is growing fast, it can create customer service pain points that could make it difficult for you to scale your operations and grow your business further.

While challenges are common and inevitable, it is best to anticipate them and prevent them from happening. When it comes to customer service challenges, here are the most common ones you should look out for and how outsourcing can help you overcome them.

Information Security

Start-ups and small businesses only have a few employees in their team, so elaborate information security system and policies may not be necessary. But as your business grows and you gain a lot of customers, your team, especially your customer service staff, also grows. And with a lot of customer service employees having access to sensitive data, your company can become vulnerable to data breaches.

In this digital age, cybercrimes are getting more sophisticated and customers are getting more careful about giving away their personal data. In protecting your company and your customers from data security risks, you should be able to define who are authorized to access the data, what the data is being used for, and how it's protected.

Why Outsource Customer Service: Customer service outsourcing firms are already experienced in this field and have dedicated secure facilities in place for offshore customer service teams. They have robust and strict physical and information security policies and protocols, in which everything is audited and monitored, and potential breaches are assessed so they could be prevented.

Seasonal or Unpredictable Surge of Customers

Seasonal sales or promos and new campaigns or products can create dramatic fluctuations in customer service demands. It's hard to predict customers' reaction toward a new product or campaign, but it's possible that a successful campaign or launch will result in an overnight explosion. Is your business ready for surges?

As for seasonal promos like Christmas sales, you can predict that customer service demands will peak during this time of the year. So, you would hire more people to accommodate increases in volume during this season. But what happens during off-peak seasons? You could hire temporary staff for peak periods, but you’ll still have a permanent extra office space and equipment that will remain unused for most of the year.

Why Outsource Customer Service: Among many other purposes and benefits, outsourcing is designed to help businesses scale up (or down) their operations whenever they need to, and make it easy to do so. You can hire an offshore team of customer service staff for an arranged period of time or for long-term. That way, you have expanded resources without spending more on overhead costs. Outsourcing also reduces turnaround time for the recruitment, onboarding, and training processes. You can focus on growing your business while your customer service outsourcing partner takes care of your offshore team.

Expanding Internationally

A growing business can mean that you are starting to cater to customers from other countries. Despite having stellar customer service locally, overseas customers might have varying definitions of what is good customer service for them. Tapping into new markets can come with challenges, but customer service may be one of the most complicated to get right. Different countries have different languages—and even if English is the universal language, there's also the cultural differences to consider, as well as different regulations you need to comply with.

Why Outsource Customer Service: Outsourcing providers have the expertise to give you advice on the right customer service approach or strategy for a specific market. There are markets that prefer email or chat over calls, while other markets prefer voice-based customer service. Furthermore, they have the skills, tools, and resources to recruit customer service talents for you that have the right skill set that you need to cater to a certain market. They may support different languages as required and may have language competencies for specific regions or dialects. Outsourcing companies, as they cater to offshore clients, are also well-versed in and are certified for international standards and regulations.


To overcome these challenges, you should be prepared for all the potential scenarios that could happen. Assess every aspect of your customer service and come up with sustainable strategies that will not compromise other areas of your operations. An experienced customer service outsourcing partner will help transform your business to become more flexible, scalable, and productive. Outsourcing your customer service will also give you access to extensive expertise, best practices, and a wide range of resources.