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Insights   >   How Outsourcing Staffing In KSA Can Give You A Headstart

How Outsourcing Staffing In KSA Can Give You A Headstart

Author: TASC Staff Writer
May 12, 2022
Employers • KSA

The Kingdom of Saudi Arabia (KSA) is among the top destinations for Outsourcing and Shared Services (OSS) in the MENA region. In the last 40 years, technology has completely altered how companies’ function. As companies work on expanding into Saudi Arabia, the OSS industry is expected to grow with around a quarter of all Shared Service Centers (SSC) located in this area. In 2018, analysts estimated the worth of the OSS market to be $1 billion, and information technology outsourcing represented the largest share at $807 million.

The market is rapidly growing, and the top motivating factors are the ability to focus on core competencies and cost reduction. Most companies want to improve their services, and avoid managing legal hassles while keeping their expenses in check – and outsourcing has allowed them to do both.

For businesses, the only way to beat the fierce global competition is to stay current and relevant with the changing times. Since outsourcing improves performance quality and speed, it allows companies to remain up-to-date and gives them the edge to stay one step ahead of competitors.

Companies that do not specialize in the latest technologies, such as robotics, AI, and cloud computing, are able to leverage IT outsourcing companies in KSA to benefit their business. They can do so by outsourcing services from companies that specialize in these technologies. In simpler terms, the OSS industry in KSA equips organizations with abilities that they wouldn't possess on their own to support their growth.

The IT Landscape in Saudi Arabia

In the last couple of years, several countries have been competing to become the number one outsourcing location across the globe. India held a prominent position for several decades because of its large population of skilled workers, growing economy, and low costs.

Other locations, such as South Africa and the Philippines, also topped the list – while they were not favoured on costs, they did enjoy a preference due to their quality infrastructure.

Recently, Mexico joined the race for the next IT outsourcing market because of its proximity to the US, has a growing population of ICT professionals, and shares similar time zones.

According to Hani Bagedo, founder of Bagedo IB (an e-commerce and software solutions company), Saudi Arabia is an extremely viable and unique location for companies that want to outsource IT capabilities.

So Why Saudi Arabia?

Saudi Arabia is one of the largest and most influential nations in the MENA region. The country has also become more open to the global market, and the technology sector will experience its ripple effects because of its role in helping people communicate with the world.

As more Saudi nationals are receiving higher education internationally, mainly through the King Abdullah Scholarship Program (KASP), there will be increased access to skilled workers in the country. Consequently, Saudis have also become open to other cultures and markets from different parts of the world, which has brought the nation closer to a new digital age.

Additionally, the growing economy of Saudi Arabia offers huge and advantageous opportunities to entrepreneurs who wish to start a business. As a result, the market is filled with new and emerging start-ups that extend their services to clients worldwide.

Outsourcing – A Necessity More than a Luxury

All SMEs simply do not have the budget to hire full-time employees for performing non-core business operations. But they still need to manage those functions, and this is where outsourcing comes into play.

According to a study by PwC, small businesses that outsourced services were able to grow larger, faster with more profits than companies that didn't. Some of the functions that companies tend to outsource for streamlining their processes include –

  • Administration
  • Call Handling
  • Human Resources
  • Recruitment & Payroll

In the long term, the cost of outsourcing recruitment to an external agency is less than the cost of doing in-house recruitment. In Saudi Arabia, where companies may not know all the local regulations, nor speak the local language, hiring the top talent can be a challenge. There is also a recent mandate for companies to meet Saudization quotas across various business functions.

It's essential to remember that hiring the best talent in-house requires infrastructure within the organization, and it comes with significant costs – all of which could be avoided by outsourcing to a recruitment specialist in the region. Whether businesses have permanent or contract hiring needs, outsourcing allows businesses access to experienced professionals. TASC has a deep understanding of the local legislation and compliance, enabling companies to avoid any risks. From this perspective, outsourcing is a necessity for all businesses that want to enter or remain competitive in a market.

In summary, outsourcing talent in KSA offers incredible benefits to businesses that aim to grow or expand into new markets but cannot fulfill those requirements internally. Not only does it maximise their growth potential, but it also saves money and reduces risks in the process – an absolute win-win scenario.

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