Outsourcing service - Human resources trend in 21st century.

1. What is Outsourcing service?

Have you ever heard about Outsourcing service? If talking about outsourcing service, we must mention Kodak. Eastman Kodak is known as the paver of this business service to develop globally and he spent over 250 million dollars on IT outsourcing service. 

Outsourcing service is instead of letting official staff finish task, we hire the external service. This service will assume a part of the function that the company want to decrease to invest in other strategies. 

Outsourcing service is considered one of the business trends, or smart and modern business scale. It helps enterprise improve the competitive financial resource while ensuring the efficiency and enhancing the quality of commodity and service

Up to now, it is estimated approximately that 1 billion dollars of the budget have been paid for outsourcing service in the world. Outsourcing companies are developing all over the world, providing all kinds of service and field, not only the IT fields like programming or network administration. 

2. The benefits that Outsourcing service brings for the enterprise.

In order to understand the benefits that Outsourcing service in general and Vietnamese Outsourcing, in particular, have brought, we need to understand the rules of Outsourcing

• Providing quality personnel to ensure the task can be completed better.
• Transfering the task to the third party that ensures the task can be completed better than recent human capital. 

Thus, the benefits that enterprise archives are not small :

• Cost-saving: Cost of hiring Outsourcing service is more reasonable than set up a team in the office. To the outsourcing staff, fees such as personal income tax, social or health insurance do not need to be paid. 
• No workspace expansion needed: workspace here is to provide the working area, types of equipment such as furniture, computer, or necessities.
• No time obstacle: the official employee, who is allowed to leave, sick-leave, can only ensure 90% of operation. On the other hand, the outsourcing staff will help you free from the time obstacle. make sure the productivity. Working quality and time can be guaranteed by the Outsourcing company.

3. Current Outsourcing company classification in Vietnam 

Vietnamese businesses are entirely familiar with the outsourcing to support task when it is necessary. 

In Managing the Next Society, Peter Drucker stated that the majority of businesses will have to employ 40% of non-regular staff to complete the maximum task. 

However, there are many types of outsourcing service to choose, depending on the scale and quality that the business wants.

• Foreigner outsourcing

In the early ’90s, outsourcing was equated with programming or software development field because of the demand to transfer a part of the business in developed countries to developing countries in order to reduce the cost. 

With the advantage of lower-cost Asian human resource compared to Europe, China, India, Brazil and Vietnam are considered the potential of effective Outsourcing source.

• Domestic Outsourcing

In contrast to the foreigner Outsourcing service, this is the form of hiring domestic human resource. In Vietnam, besides the IT field, the fields using this service the most are office cleaning, security, and packaging in the general and small-scale enterprise will use finance, network security, or office equipment maintenance service in particular. 

Accompanying the domestic outsourcing is Payroll Outsourcing, which means hiring an external company to pay salary for staff. If the salary was previously paid through banks, businesses recently can use the headhunting service company or a human resource consultant. Both provide businesses with human resources and help them free from payment issue.

Enterprises should be flexible in using human resources in Vietnam Outsourcing service. Depending on the needs of each business to choose prestigious and high-quality Outsourcing companies in Vietnam.