Outsourcing is one of those business terms that carry a lot of weight. It has strong connotations that can be interpreted differently depending on the situation or even the people speaking about it.
In general, outsourcing is the process of delegating a company’s business process to third parties or external agencies, leveraging benefits ranging from low cost labor, improved quality to product and service innovation. When outsourcing transgresses national boundaries and is managed by companies located in other countries, outsourcing takes the form of offshoring.
This can mean anything from process outsourcing, call center functions for instance, or the direct outsourcing of employees within your office, which is what we will discuss herein.
In the UAE, and other GCC countries, most of the workforce is on an employment visa. The laws are such that companies give visas to those working directly for them, and employees on a company’s visa may not work for any other company aside from the sponsoring company. This is where the benefits of our outsourcing service come into play.
- Free Zone Companies: Free Zone organizations have limited visas available, usually depending on their office size within the free zone. I have found many companies growing exponentially, however they are not able to hire directly onto their free zone visa due to a shortage of vacant visas. These companies have few options. Either they rent a larger office, lose out on growing their business, or outsource their employees onto a different company’s visa. Another issue sometimes faced is that Free Zone companies are not allowed to do business outside of the free zone they are established in. As such, an outsourcing agency that provides an on shore LLC visa can also assist in this hurdle.
- Focusing on Core Business Functions: Every company is out to make money. In order to do this, they have to be good at something, right? It makes more sense to exert business energy into your core revenue generating function than it does to expend energy into hiring and managing drivers, receptionists, admin support employees, etc. Let an agency take over these employment grades and keep your HR/ recruitment team focused on the engineers and high value personnel that drive the company’s growth.
- A partner in Recruitment and UAE visa processing: At times, large recruitment drive must happen. Some clients find themselves either too busy or short-handed to successfully execute large and urgent drives. The benefit of having an outsourcing partner is that they are eager to assist in recruitment drives and can provide their recruiters to source and short list candidates for the client company. In addition, good agencies will have a pool of candidates in their database, as well as regular walk-ins and applicants. Once employees are sourced and selected, the visa processing is then handled by the employment agency. Visa processing is a delicate process that does require previous knowledge and experience. Having a strong outsourcing partner can ensure fast and accurate visa applications, as well as qualified navigation of the ever changing UAE requirements.
- Short term roles and manpower coverage: At times, organizations have specific needs that would require a short term resource. Temporary staffing can be difficult to source for and may even require more energy than sourcing a permanent candidate. Rather than expending their internal energy and costs into a three month role, why not use an agency that specializes in that? We can easily source and on board for short-term and even maternity coverage.
- Payroll and headcount approvals: Anyone who has worked for a large multi-national organization knows how hard it can be to secure proper approval. Imagine having to secure this approval for each and every hire, regardless of the role or assignment. As such, companies in the UAE often look to outsourcing as they can cover the cost not through HR and payroll, but through the department which requires the resource. Often times it is marketing, facilities management, or even operational budget. This can be an extremely useful tool for regional managers who need resources quickly.
- Off boarding of employees: Often, this is the forgotten part of hiring an employee. Not only can it be uncomfortable, but in the UAE the laws are very specific and often times require several powwows between HR managers and officers to ensure everything is on the up and up. Having an outsourced workforce gives you flexibility in this regards. Not only do you keep your hands clean with the offloading and cancellation, but you also get expert knowledge and experience on UAE labor law at no extra charge. Essentially, you are also securing an HR consultancy in the UAE.
There are more reasons depending on the current needs of the organization, but these are the main ones we see being mentioned throughout the UAE. It is important to remember, not all agencies are the same. Rates and charges are important factors, but so are customer satisfaction and the services offered to the outsourced employees themselves.
I have personally been hands-on in the UAE outsourcing arena since early 2012. This has opened my eyes to the current practices and how companies can utilize good agencies to reach their operational goals.
I can honestly say without hesitation that I am happy to represent one such agency that holds our client companies and outsourced employees both in high regards and offer our services in a transparent and cooperative manner.
With that said, be sure to be in touch with us at Ultimate HR Solutions to see how we can best assist with your organizational needs and growth in the UAE.
Sharom Al Ansari