Help with Outsourcing HR

Two types of outsourcing HR

Human resource outsourcing falls under two categories. The first category is professional employer organization (PEO) and the second category is Administrative Service Organization (ASO).  These, as well as a guide to outsourcing HR, are explained below.

PEO– PEO’s are usually used by small businesses to solve their HR outsourcing needs. In PEO, the outsourcing firm will hire all the employees in the organization and will put them on the outsourcing firm’s payroll. The outsourcing firm will also pay taxes as well as secure benefits and workers compensation. In order for PEO to work, the outsourcing firm will contractually lease the employees back to the hiring organization. Ultimately, PEO’s handle the administration of the back office in addition to compliance with taxes and regulations. The goal of PEO is to not interrupt business functions and to make the transition of the outsourcing as seamless as possible.

ASO– ASO is an alternative to PEO and the precise definition of what constitutes ASO will differ from various HR outsourcing firms. Often, ASO will overlap with PEO services, but ASO will always avoid the co-employment aspect of PEO outsourcing. This means that the outsourcing firm will not lease employees, and the hiring organization will use their own tax ID number instead of the outsourcing firm’s number.

Outsourcing HR services

The precise human resource outsourcing services offered will differ from outsourcing firm to outsourcing firm. However, the following list describes commonly outsourced services that can be found from almost all outsourcing firms.

Payroll:  HR Outsourcing companies will administer and perform tasks related to payroll services. This can include tasks such as payroll processing and administration, billing reports (on-line options usually offered), tacking and processing of paid time off, and simplified payroll submittal.

Payroll analytics: Most outsourcing firms will provide the hiring organization with insight on payrolls. This insight usually includes payroll/billing/HR reports, payroll registers, employee data reports, job costing reports, and benefits spending.

Tax Administration: Outsourcing firms will handle the tax operations of organizations and will ensure compliance with regulations and laws. Outsourcing firms will be able to prepare and deliver electronic W-2 forms, complete processing and payment of payroll, and complete employment tax processing and payments.

Risk and compliance protection– Outsourcing firms can assist organizations in limiting risks with HR services and in being compliant with laws and regulations. Firms will be up to date on new regulations and will be able to comprehend and explain HR rules. Outsourcing firms can reduce risks related to administrating payroll, administering benefits, paying workers, and business regulations compliance.

Benefits plan– Outsourcing firms will be able to offer benefit plans for companies. Typically, outsourcing companies will provide benefit plans for disability insurance, medical insurance, life insurance, employee assistance programs, and commuter benefits.

Service tools– HR outsourcing firms will be able to offer employees of a hiring organization with tools, often on a web-based platform, to assist with performing their jobs. These tools can help manage tasks such as benefits and compensation planning, advanced analytics, and real-time data on employee hiring, employee pay, and compensation reports.

How to decide if an organization needs to outsource HR

Outsourcing HROutsourcing HR is a large step for an organization to undertake. Companies may have trouble in deciding whether to outsource all of their HR needs or supplement their current HR department with outside assistance.  The following list describes criteria that companies should consider when deciding to outsource HR and when deciding the extent of the services outsourced.

Cost-effectiveness– Hiring organizations must compile a budget to determine how much is being spent on HR. Next, hiring organizations should obtain proposals from outsourcing companies that contain a dollar amount for the services that will be provided to the hiring organization. Finally, the hiring organization should make the most cost-effective decision in whether to outsource some services or to outsource all services. Furthermore, companies should consider long-term planning in determining the most cost-effective solution. For example, it may be more expensive to switch to an outsourcing firm at first, but eventually the costs may result in a positive return of investment.

Focus on core business functions– The tasks involved with human resource management and administration are usually considered a secondary role that consumes a company’s resources and time. Through outsourcing these services, companies can focus on the core businesses that drive their company and revenue streams. Furthermore, outsourcing firms can provide legal help with complying with regulations and laws.

Access to resources: Outsourcing firms have HR resources that the average company does not have access to because the firms are built around providing HR services and thus invest in a wide range of resources. These resources often include sophisticated and advanced technology for payroll and other HR services as well as service tools to assist employees. Furthermore, outsourcing companies can provide statistics and analytics for companies to improve their HR management.

Suggested HR outsourcing companie

Emplicty– Emplicty is an HR outsourcing firm that has offices located in California and Texas. Emplicty can help organizations with payroll administration, employee benefits plans, and taxes and regulatory compliance. Emplicty will be custom tailor services, and the extent of the services based on the hiring organization’s needs and current situation. Emplicty eliminates the need for an organization to have an HR department.

ADP (Automatic Data Processing) – ADP is a large outsourcing firm that serves small, medium, and large businesses. ADP has near $10 billion in revenues and serves around 570,000 clients. ADP offers HR outsourcing services that include human resource management, payroll, and tax and benefits administration. ADP will tailor the services based on the needs of the hiring organization. ADP can help eliminate a company’s need for an HR department or can assist the HR department that is already in place.

XcelHR– XcelHR HR outsourcing is part of the XcelHR family of companies.  They provide a wide range of services, including payroll, benefits, and general human resource management. XcelHR will service any type of company and will tailor the needs to fit the size of the hiring organization.

New Ways of Outsourcing to Transform the World

Although outsourcing is nothing new, the nature of it, primarily due to technology, is rapidly changing. While exactly what kinds of changes this will bring on the world is uncertain, they are certain to be dramatic over time.

Outsourcing and trade
Trade and outsourcing are different, but they interact with each other. In the past, most trade was driven by people simply exchanging goods. However, as transport and communications technology progressed, particularly in the 20th century, where goods are goods are produced has increasingly been influenced by firms outsourcing production. Manufacturing and the jobs it brings now shifts from country to country as firms look for the most cost effective places to produce. In many cases, this is necessary if the manufacturer was to survive. While this outsourcing was disruptive for many people, its direct effects, particularly in more service-related industries, was more limited.

New wave of outsourcing
The Digital Age is bringing great changes to outsourcing and greatly expanded its reach into new areas. There are several major game changers that have brought this about:

  1. Cheap and easy communications
  2. Ways to collaborate online and share large amounts of data at low or minimal costs
  3. The growth in software, apps, websites and other digital products, as well as ecommerce in general
  4. Cheaper computing and internet options that put connectivity into reach of far more people than was possible before.

All of this means that outsourcing is moving into new areas, most notably more services. It is no longer primarily manufacturing jobs that face outside competition. Most people are familiar with things like call centers being overseas, but overseas outsourcing is more pervasive than many people think, and most are far from realizing its full possibilities.

Now, everything from engineering work to taking orders at fast-food restaurants can be outsourced anywhere. In addition, as more of the economy moves online and more goods and services become digital, the possibilities can only grow. While a physical store has to be built by local workers, an online store can be made on the other side of the world. In another example, even teaching, at least to some extent, can be outsourced anywhere in the world. If courses are online anyway, why should it matter where the teacher is? Finally, it is increasingly easy to outsource entire business process of companies, from accounting to IT, to wherever they can be done at the lowest possible costs.

Outsourcing for all
What is perhaps the biggest game changer in outsourcing now is the way it has become accessible to virtually anyone with a little money and an internet connection. Freelancer websites, to include Elancer, make it possible to hire someone on the other side of the world, even for small jobs (the website Fiver specializes in five dollar jobs). Never before have individuals been able to employ others from around the world so easily to do things they either are not capable of or do not have the time to do.

Outsourcing advantages and disadvantages
Not surprisingly, this new outsourcing offers both promise and peril. Now, many of those in service jobs will face more competition, some from foreign countries, than they ever experienced before. This leads to the possibility of downward pressure on wages as well as jobs lost to other countries.New Ways of Outsourcing

However, outsourcing will also offer new opportunities for people and businesses to get jobs done more efficiently and at lower costs. Entrepreneurs, in particular, now can utilize tools they never had before. In addition, more people can work from where they would like to and offer their talents to anyone in the world. They no longer need to be limited by geography and other factors that have nothing to do with their quality of work.

Limits to outsourcing’s transformative effects
While the effects of new forms of outsourcing have a long way to go before they are fully felt, there are limitations as to how far they will go. There are still advantages to doing things in-house, and problems with outsourcing tasks to include the loss of control and the difficulties that come with managing freelancers. Skills, infrastructure and education levels will be limiting factors on overseas outsourcing. Many of those overseas who would like to do freelance work simply do not have the language abilities, skills or access to make it practical to employ them. The pool of employable people will be at least somewhat limited until the skills and infrastructure can start to catch up.

Can outsourcing be limited?
It does not appear it will ever be able to practically limit these new forms of outsourcing, even assuming their overall effects are negative. Much of the work centers primarily on the movement of data, which is not practical to control, especially when it is done by individuals. Furthermore, any country that tried to limit it would be imposing higher costs and other limitations on its businesses. Finally, as the technology continues to improve, outsourcing will become even easier. All these factors mean increased outsourcing is something that people will need to adjust to whether they like it or not.

To better face the future, businesses and individuals need to understand and prepare for what outsourcing will bring. Only then, can they take steps to minimize the negatives and maximize its positive effects. The world is going to increasingly work together regardless of whether many people want it or not.

The Key to Understand and Utilize Engineering Outsourcing

Engineering outsourcing overview

Engineering outsourcing is a term used to describe a wide range of services and fields. It can be broken into multiple categories, and the major five categories are: civil engineering, architecture services, structural engineering, mechanical engineering, and electrical engineering.

Civil engineering outsourcing involves services relating to land development projects, which can range from residential projects, business parks, and master-planned communities. Outsourcing firms offer services ranging from estimation, planning, design, and implementation.

Architecture services outsourcing incorporates services dealing with design and management for residential and commercial projects. Services typically range from 3D rendering, floor plans, architectural detailing, landscaping, archival drawings, and bill of quantity reporting.

Structural engineering outsourcing deals with an outsourcing firm providing the design and detailing for structures and subsequent materials. Typical services offered are steel detailing, structural design and analysis of structures, and rebar detailing/bar bending services.

Mechanical engineering outsourcing has to deal with the services, skills, and tools offered to the corresponding mechanical engineering field. Often, companies find assistance in drafting and detailing, 3D modeling, heavy equipment and tools, and HVAC services.

Electrical engineering outsourcing deals with services that correspond to electricity, electronics, and electromagnetism. Outsourcing firms can provide design and drafting services, power system design, lighting system design, fire protection system design, and specialized electrical engineering services.

Categories of civil engineering outsourcing

Civil engineering outsourcing covers many types of fields and industries.  The following list describes the fields and types of services one can expect to find in civil engineering outsourcing.

  • Residential: condominiums, apartments, duplexes, independent homes, and farmhouses.
  • Interior Designing: floor and tiles design, murals, furniture design, cabinet design, false ceilings, and lighting.
  • Commercial: Corporate offices and parks, shopping malls, hospitals, hotels, resorts and theatres.
  • Industrial: Factories, warehouses, specialized natural disaster resistant buildings.
  • Environmental Designing: Town planning, road and highway engineering, and water supply and sanitation.
  • Landscaping: Public parks, gardens, golf courses, pedestrian areas, theme parks, sports facilities, and greenways.

Civil engineering outsourcing services

The amount of services that can be found in civil engineering is substantial since civil engineering covers a wide range of industries. However, the most common services found in the majority of civil engineering outsourcing companies are listed below:

  • Construction cost estimation services: This involves an outsourcing firm estimating the construction and building costs for a project. Usually, the outsourcing firm will also provide a cost and labor building plan based off of the estimation of the project. This outsourcing service can assist in companies getting correct cost information necessary to make a bid for a contract, help in deciding the profitability of a project, and help with the tracking of expenses as the project is undertaken.
  • Construction drawings: Construction drawing outsourcing involves an outsourcing firm creating presentation drawings (layout/contour mapping), master plan drawings, product drawings, and shop drawings (cabinets/doors, and modification of existing buildings). This service will assist companies in the planning and estimation of the phases of a project, provide a detailed estimation on the layout and materials, and enables the review and identification of any potential issues from approving authorities.
  • Paper to CAD conversion: In this service, the outsourcing firm will convert companies’ paper drawings into accurate and precise electronic versions. This service helps a company to reduce the retrieval time of documents, maintain an organized and accurate list of high-quality drawings, and make the archival of CAD drawings simple and reliable.
  • Land and development services- This outsourcing service revolves around an outsourcing firm offering services that can range from master planning to detailed site design. The most common users of this outsourcing service are real estate companies, land developers, contractors, surveying firms, and owners. Services typically include outfall analysis, existing conditions and demolition plans, site plans, sediment and erosion control plans, storm water management plans, road profiles and design, utility plan and profiles, and plan/earthwork calculations.

Architectural outsourcing services

 Engineering OutsourcingSimilar to civil engineering outsourcing, architectural outsourcing also offers a wide range of services. The most common services offered are listed and explained below:

  • 3d rendering- Outsourcing companies will provide 3D modeling services (isometric, perspective, and realistic structure representation) to hiring companies. This enables companies to visualize and conceptualize models that contain high level of details for modeling, rendering, and texturing. Typically, this service is offered to residential buildings, commercial buildings, structure models, and landscaping.
  • Floor Plans- Outsourcing companies will provide floor plans and design to clients. Services usually include landscaping, elevation planning, walkthroughs, and 3D renderings.
  • Architectural detailing- This service encompasses an outsourcing firm handling an organizations’ architectural CAD drafting needs. A firm can assist with creating walkthroughs, designing layouts and landscaping, floor planning, road and pipe profiles, commercial buildings, and piping layout.
  • Landscaping- Outsourcing firms can assist in increasing the aesthetic value of properties. Companies will design a landscape based on the site and preference of the hiring client. Services include walkthroughs, floor plans, architectural detailing, and 3D rendering.
  • Archival Drawings- This service involves an outsourcing firm maintaining and safeguarding architectural drawings, reports, and documents. This can assist companies in reducing the liability they have in maintaining an accurate and up to date archive of project documents.
  • Bill of Quantity reporting- This is a reporting service for residential and commercial properties. Companies will receive an estimation of the cost to construct a building or parts of a building.

Structural engineering outsourcing

Structural engineering outsourcing involves numerous services having to deal with the design and detailing of structures. The following list provides details on the most commonly outsourced structural engineering services:

  • Water Tanks/Retaining Walls– Outsourcing firms typically use ETABS, STAAD, and other FEM software in order to design retaining walls, retaining structures, and water tanks.
  • Residential Houses– Outsourcing firms will design the structure of residential houses (shear walls, wood framing, etc). Firms can also assist with specific framing details.
  • Structural Steel Detailing- Firms will assist in the general arrangement and positing of the structural steel and connection details.
  • Bar Bending Schedule- Outsourcing firms will contribute in creating a schedule for the tonnage of reinforcement steel and rebars needed in a project.
  • Pre-stressed detailing– This service revolves around the arrangement and positioning of rebars in the pre-stressed structure. Outsourcing firms can also assist commercial buildings in pre-stressed detailing.
  • Structure modeling– Typically, the outsourcing firm will use structural software such as STAAD/RAM/ETABS/ROBOT in order to model the structure. The outsourcing firms do this for steel, concrete, and timber structures.
  • Structural Analysis Report– Outsourcing firms can provide structural calculations of moments, loads, and stresses. They can also usually provide structural calculations on these aspects as well

Mechanical engineering outsourcing

Mechanical engineering outsourcing offers a range of services typically in fields such as process industry, machining, energy, agricultural, automotive, and forestry. The following list describes some of the services outsourcing companies usually offer for mechanical engineering:

  • General engineering services- Companies can find outsourcing firms that will provide services and assistance with fluid dynamics, pneumatics, kinematics, hydraulics, fatigue and failure analysis, rivet applications, and thermodynamics.
  • Heavy equipment and tools- Mechanical engineering outsourcing companies can provide heavy equipment for areas such as automotives, heavy engineering, earthmoving equipment, agriculture machinery, and other special purpose machines and tools. Outsourcing companies also use specialized software and analysis tools that may assist companies in a wide range of services.
  • Mechanical 3D Modeling Services- 3D modeling can be created from 2D CAD, scanned, or hand drawings. In addition, companies can provide 3D animated sectional views and assembly/rendering.
  • Drafting and detailing services– Outsourcing companies can provide modeling and detailing services to an organization. This usually involves surface modeling, sheet metal modeling, solid modeling, assembly and castings. In addition, drafting and detailing services relating to product design, top-down design and hydraulics/lubrication system design can also be provided by outsourcing companies.
  • HVAC Services- HVAC services contain outsourcing work having to deal with the design and drafting of engineering services for building services and utility systems such as HVAC, fire protection, and plumbing/steam/heat load calculations. Outsourcing companies typically offer design/drafting for HVAC construction plans, demolition of existing drawings, equipment sizing and estimation, and calculations/ specifications.

Electrical engineering outsourcing

Electrical engineering outsourcing deals with services involved in the field of electrical engineering, which involves electricity, electronics, and electromagnetism. The following list describes services companies can find for electrical engineering outsourcing.

  • Power System Design- Outsourcing firms can assist with helping to determine the correct equipment, panel design, power layout plan, and other services having to do with the design of power systems.
  • Lighting System Design- Involves switchgear sizing, lighting estimations, light fixture layout design, and assistance with transformer size.
  • Design and Drafting services of electrical systems- Outsourcing companies can provide electrical schematics, harness/cable drawings, electrical wiring diagrams, and ladder logic drawings.
  • Fire protection system- Outsourcing companies can help a company design a fire protection system. Outsourcing firms can provide fire protection details/schematics/diagrams that adhere to all codes and standards, layouts for detectors, smoke detection system, and sprinkler plans.
  • Specialized services- Some outsourcing companies can provide specialized electrical engineering outsourcing services such as services in electromagnetic fields and waves, electro-optical engineering services, electromagnetic radiation, control engineering, and power engineering.

Some notable engineering outsourcing companies  

3Dcities India- 3Dcities India provides architectural services, civil engineering services, mechanical engineering services, and electrical engineering services. This firm is based in India and has core strength in computer aided design (CAD). The firm has competitive personnel ranging from engineers to project managers. 3Dcities India claims to be able to help with complex projects in short notice because of their multi-skilled CAD operation and flexible nature.

Capstone – Capstone is a civil and structural consulting firm. The engineering outsourcing services offered is civil engineering services, structural engineering services, CAD, quantity estimation, and project management. Construction companies typically use Captone, and they claim to be the preferred outsourcing company for the industry.

Aktis engineering solutions– Atkis provides CAD services, CAE services, consulting, sourcing, and prototyping/ testing. Atkis claims to be in the niche for engineering design, analysis, and prototyping & manufacturing. Atkis can assist from concept design to product launch. They also do product validation, prototyping, and production support.