BPO or third party labor companies solutions

"Human resource leasing service" (or 3rd party labour services) is gradually becoming a new trend in domestic and foreign businesses to help support human resource management effectively and save budget resources. For the BPO (business process outsourcing) service industry, HR outsourcing solutions are even more meaningful as this is a service industry that needs to use a large number of quality personnel to ensure work performance. Today, BPO human resources outsourcing solutions are starting to spread from corporations, companies or foreign investors to business groups in the labor market.

1. What is HR outsourcing?

Human resource outsourcing (HR Outsourcing, or third party labour) is a service performed in the form of hiring an experienced unit in the field of human resources to replace the business to undertake related implementation tasks such as: Conducting Labor contract procedures, Calculate monthly salary payments, register for social insurance, health insurance and unemployment insurance, calculate personal income tax and tax refund, pay income tax individual,... then send detailed information back to the business owner.


Who Is Considered a third party labour?

>>>Top headhunting companies in Vietnam

2. Third party labour service or HR outsourcing services in Vietnam currently exist in three forms

2.1 Labor legalization (Employment service): Enterprises are responsible for recruiting candidates according to job requirements and ask the Service Company to sign labor contracts and manage all personnel aspects of the force. This.

2.2 Staff service: Usually used for two subjects

  • i) office staff during maternity leave or when the company has short-term projects
  • ii) factory workers.

2.3. Service leasing (Service leasing, service providing): Includes leasing, training, managing staff and taking responsibility for the business results and work results of this staff.

3. For this trend to catch up with world services, it is necessary to focus on the following activities

  • Research the good and bad points of third party labour providers models in countries in the region to incorporate into regulations. Law makers need to both ensure the rights of workers, but still ensure competitiveness in terms of flexibility of human resources, which is a factor in attracting foreign investment capital to Vietnam at the national level.
  • Take measures to monitor labor rental companies to avoid widespread violations of the Law that affect workers' rights.
  • The community needs to understand the true meaning of Outsourced Labor and have positive reactions to Outsourced Labor, which is considered a trend in the world today.
  • There is a need for a professionally operating Labor Outsourcing Association to connect with the International Outsourcing Association to learn more experiences about service models, processes, general rules... to improve the quality of this service in the Vietnamese market.
  • Service providers need to invest in technology software, reduce service costs and have a plan to properly train staff to provide professional services.

4. What issues need to be considered for HR outsourcing services to develop?

- First: Research the good and bad points of this model. Lawmakers need to improve legal regulations to protect workers' rights while still ensuring the competitiveness of services, contributing to attracting foreign investment capital into Vietnam.
- Second: Have appropriate monitoring measures.
- Third: Improve community understanding of this service.
- Fourth: Establish an Association of Outsourcing Labor with specialized activities, linking with International Outsourcing Associations to gain more experience.
- Fifth: Service providers need to invest in technology software, reduce service costs and have a plan to properly train staff to provide professional services.

5. Providing seasonal personnel

Whether you need to hire one or hundreds of employees, from general laborers to technical experts, we can provide human resources solutions to meet short-term or long-term staffing needs. Term includes replacing personnel on vacation, sick leave, special assignments or seasonal personnel according to the project. This type of service will help you save time and recruitment costs, turn fixed labor costs into variable costs and fit your production plan at any time.


Third party labour companies quickly meet the operational needs of the business.

6. Human resources outsourcing service

- "In today's fiercely competitive business world, companies are facing unprecedented pressure from the market. Businesses that survive and prosper in the market are those that know how to doing business more efficiently than competitors - reducing business costs while ensuring high quality of goods or services."
Human resource outsourcing is a form of outsourcing part of a company's functions and tasks ( third party labour providers) - functions that the business has previously undertaken.


Contact Faro Vietnam today for HR solution

Email: service.vn@farorecruitment.com

Hanoi Head Office

  • Tel: + 84 24 3974 3091
  • Add: Unit 701A, Tower A, Handi Resco Towers, 521 Kim Ma Street, Ba Dinh District, Hanoi, Vietnam

Ho Chi Minh City Office

  • Tel: + 84 28 3821 4654
  • Add: 6th Floor, Saigon Finance Center Tower, 9 Dinh Tien Hoang Street, Dakao Ward, District 1, Ho Chi Minh City, Vietnam

Grow your business with our trusted Human Resource Solutions!