HR outsourcing services, especially in the IT field, are becoming familiar in Vietnam in recent years. Companies tend to use outsourced services to save costs, deal with flexible staffing needs, limit risks and access high-quality labor resources.

1. What are HR Outsourcing services? Benefits of outsourcing services for businesses

Outsourcing service is a method of entrusting a part of the production and business function, including both physical assets and human resources, to an outside service provider with expertise in that industry. 

In recent years, Vietnam has gradually been considered as  a viable outsourcing destination, particularly in the IT sector. Businesses have a tendency to choose HR outsourcing services as it not only saves money and meets flexible employment demands but it also helps to reduce risk, and gain access to high-quality labor resources.

Popular HR outsourcing services nowadays
Popular HR outsourcing services nowadays

2. Which companies should use HR outsourcing services?

HR outsourcing service is a fundamental option for any company, regardless of its industry or size, whether it is a large organization with decades of experience or a small startup. 


Young firms, in most scenarios, tend to encourage business development, as well as market share expansion in the industry. During this period, the goal of stabilizing the human resources apparatus is frequently put aside in favor of other business objectives; therefore, HR outsourcing solutions can help to tackle the situations of balancing between different goals and lessening the danger of a misalignment between business growth and personnel of an organization.


The same situation can also be witnessed in huge organizations that are experiencing tremendous growth until they discover that their current workforce structure cannot keep up with the company’s rapid expansion. These services and re-employment options can assist the organization in achieving quick balance without wasting time stabilizing human resources before implementing a new business plan.


Currently, HR outsourcing services are still new in the Vietnamese market, and local firms have only tested simple sections and employed people for roles that do not require sophisticated technology, such as low-level employees and middle-level management positions. Higher-ranking positions, such as CEO, CFO, and CPO, are scarce and highly secured in the market

Popular HR outsourcing services nowadays
Popular HR outsourcing services nowadays

3. Popular HR outsourcing services nowadays

The human resources industry is divided into 4 main areas: recruitment, training, compensation and office management. Each of these segments has its own outsourcing services.


Outsourcing recruitment (Headhunt): After a customer submits a request, headhunt businesses are responsible for locating qualified candidates, resending CVs to clients, supporting them with the interview process, and negotiating salaries with applicants. With a broad understanding of the recruitment market, headhunt companies can easily find and approach talented individuals as well as advise customers with appropriate recruitment policies. .


HR outsourcing service: Customers will recruit individuals from the organizations that provide this service. This person will continue to be legally managed by the service-provided firm (these companies will be liable for contracts, salary, bonuses, etc. ), but will work under the arrangement of the client company This service is suitable for  businesses whose target is to limit the negative effects of legal procedures on their employees or companies that have short-term projects.


Outsource training: Currently, there are many companies that provide training services for businesses. These companies often associate with high-reputable speakers in the industry to be in charge of training customer’s personnel with tailored lessons based on customer requirements.


Payroll: As long as the customer gives complete information about the business policies and employee’s salary agreements, the payroll company will analyze and process it in order to provide the payroll with the most cost-effective manner. Some of the services provided that could be mentioned include: Preparation of payroll and related responsibilities for the business, timely payment of applicable wages, full accounting  of tax payments, salary deductions based on payroll, and so on..


General human resource management: Companies that provide this service will be in charge of managing human resources, maintaining employee information, as well as responding to requests and complaints from employees. This service is appropriate for organizations who wish to expand their branches in other regions and nations, concentrate on creating core products, or just simply want to reduce the workload on the available HR employees of the company.

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