The word outsourcing comes from the English original and consists of two words "out" and "source” – sourcing outside the firm.
The contractor thus transfers part of its activities to an external provider, who ensures their effective implementation.
In recent years outsourcing has been enjoying quite notable success. Many companies use external providers to secure individual business processes that are often unrelated to the company's core business. These include, for example, IT, administration, accounting and finance, as well as HR and payroll accounting. Currently, and due to the limitations associated with the coronavirus pandemic, which has significantly affected the labour market, many companies are facing relatively low unemployment and the associated shortage of job seekers in the Czech employment market. In such a situation, they are more likely to consider external services, which can be more economical in terms both of time and finances, but can also enable them to focus on key areas. By outsourcing, a company reduces costs and increases efficiency by entrusting a certain part of its agenda to experts. One of the advantages of the outsourcing of services is a reduction in the personnel agenda and thus the transfer of responsibility for a certain part of the services to the providers of these services. The risk of losing control of the transferred agenda or of dependence on others is often discussed. However, before choosing such a provider, we advise you to start by checking out its reliability (the stability and credibility of the company), as well as the expertise of its team, the quality of the work and its record in meeting deadlines. The size of the company is also important, because a larger company employs more experts in various fields, who undergo regular training and monitor the professional area entrusted to them.
Efficiency comes first
Currently, the topic of automation and reducing administration is a popular one. Our company also profiles itself as a "paperless" office. The main reason for automating and minimizing archiving is to increase efficiency and reduce costs. At the same time, we try to be environmentally friendly. Thanks to our IT, to the diversity of individual departments and staffing, we are able to come up with new proposals to improve and streamline processes. Unlike internal departments, which are often rigid within the structures of larger companies and have low flexibility, we are open to challenges and technological advances. Due to the volume of data being processed, it is important for us to have all client-oriented processes automated (from the first communication with the client to delivery of final documents to the client). Our teams consist of technically oriented enthusiasts who are also specialists in specific areas, whether this is accounting, taxes or payroll consulting.
The agency employment trend
Recently, the Employer of Record (EOR) (agency employment) trend has also become more widespread. This is a service provided to both local and foreign clients. A foreign client is usually interested in employing a Czech expert, but does not have a permanent establishment or a registered company. In this case, he can contact a local employment agency (licensed), which will help him not only with recruitment but also with employing and hiring the expert to the user. Czech subjects (mostly corporate entities) often use this to handle their budget, which limits the number of employees. When they are unable to meet their set targets due to staff shortages, they seek the services of an employment agency to provide them with an employee on a temporary basis. These in general are the benefits of HR and payroll outsourcing. At the same time, there are certain disadvantages to the outsourcing model that need to be carefully considered in advance. The disadvantages and thus our advice on when it is not appropriate to outsource include any threat of the sharing of internal know-how to a third party, or the provision of information about one’s clients to a third party. This could lead to such a company "poaching" your client.
