Hong Kong is an important hub of outsourcing activities in the world. Many US-based firms have established their manufacturing plants in the Asian economic powerhouse and thus reap the benefits of having a base in a high-value destination like Hong Kong. As China grows as the biggest economic and social influence in the world, more business deals are getting lined up with Asian countries like India, Indonesia, and Vietnam. The following paragraphs provide an insight into the complex socio-economic milieu in which the booming global outsourcing industry finds itself today.
Like the whole world, the manufacturing sector in China is undergoing dramatic changes. It has already been a major player in the global economy since the 1980s, and the rapid growth rate of the past decade has been the talk of the town. The rapid rate of development of the Chinese economy means that in a very short span of time it can transform into a developed nation with the same industrial might as any developed nation in the world. This will have a major impact on the way the global labor market functions, and will be an impetus for increased globalization across many industries.
Many of the processes that businesses typically use in their day-to-day operations can be optimized through the use of offshore IT practices. In fact, many organizations can gain access to IT services and expertise at a lower cost by outsourcing these processes to the Asian countries like India, Taiwan, and mainland China. In this way, companies are able to cut down on their overall costs, and at the same time increase profitability. But the growing middle class in these Asian nations has also changed the way business deals are carried out. Many of the new generation entrepreneurs are now demanding a more personalized service from global business firms and are demanding more value for their money.
Rapid economic development and changes in the world’s demographics are creating a massive shift in the way business is conducted. The rising gap between developed and developing nations’ economies is causing many people in the developing world to earn less than their Western counterparts. For this reason, organizations around the world are looking for more cost effective ways to run their businesses. One such way is through the practice of IT outsourcing, where companies from different sectors of the economy to work together to provide each other with what they need, but at a much cheaper price. With so many multinational corporations setting up shop in the Hong Kong and Asian cities, there has never been a better time to capitalize on the outsourcing hr outsourcing hong kong.
If companies from developed nations are willing to share their valuable IT skills and expertise, they will find it very easy to attract the right kind of employee for their organization. There is always a shortage of qualified IT professionals in most fields. This is where companies that are based in Hong Kong can make inroads. Through the use of an HR Outsourcing expert who specializes in the recruitment and placement of personnel from developing nations, these organizations can leverage their unique skills and experience by hiring the right professionals into their organization. There are two major benefits of this strategy, the first one being that it allows them to tap into the best possible talent available.
The second benefit of this practice is that it helps the companies to save money on establishing a dedicated HR department. In countries like the US and Canada, there is already a vibrant business sector based around providing recruiting, training and placement services for IT manpower. The challenge here is that most of these service providers charge a high price for these services, which makes it impossible for many start-up companies to afford. However, a Hong Kong company can bypass this difficulty by outsourcing its HR functions, since this would allow it to save on establishing an entire department and still be able to hire quality professionals at a very low cost.
Another advantage of using an external resource for the recruitment and placement of its staff is that it can focus its attention on its core business operations. Since it does not have to expand its existing workforce, it can cut expenses on its business operations, especially on its human resources. The recruitment process can take longer time since the potential candidates have to be personally invited by the company before they could be considered for the position. However, since HR outsourcing eliminates the need for the candidates to visit the company, they can be carefully selected so as to ensure that the quality of the professionals hired is high.
A third advantage of utilizing the service of an outside provider is that it allows the company to focus more on its core business functions. This means that the time and resources devoted to the HR recruitment and placement processes can be focused on the more critical aspects of the company’s business model. Since the outsourcing company will be taking care of the recruitment and placement of its employees, the company will not have to worry about compensating these personnel through salaries or benefits, since these tasks are already being handled by them. This also eliminates the possibility of company-wide wage cuts due to a large number of laid off employees. Outsourcing can help a company focus on running its business and not on the process of dealing with employee issues.