Hiring a gig worker, freelancer, consultant or sub contractor to perform services traditionally performed by a company’s own staff and resources provides multiple benefits. It reduces costs, frees up time to the business and improves efficiency on project execution. In fact, there has been a 55% increase in contingent jobs being advertised in APAC since 2013 showing the mind shift to pay for service is more popular than ever. This is not even truly capturing the cost and operational efficiencies whom understand that you can engage an employee in any country around the world by using a PEO or EOR.
The most consistent increase in the flexible engagement of staff has been in the Technology, Engineering, Construction and Utilities sector growing to 34.3% of the overall workforce. In the engineering sector, small and large firms find it beneficial to outsource technical services to meet their business needs, and they have adopted this with 2.9% growth in contingent hires in 2017 – 2019 alone. Here are the top reasons why you should outsource your project team in 2020.
1. Cost and time savings
One of the main reasons you should outsource is to save money and time. For example, if you need to complete a design competition or executing a large project. Instead of recruiting, hiring and training people, you can simply outsource the skill required for the duration of the project. You will see that it is much easier to develop your product / Service when it’s handled by experts with the adequate skills. They can develop innovative projects in a short amount of time, which eliminates the time and cost of training. They are paid more on a day rate than permanent employees but studies have shown that they are sometimes paid only 4% more than employees by the time you take into account staff costs including: insurance, statutory required costs, training, IT and benefits.
2. Reduce entitlement costs
Hiring contractors can provide more flexibility and in some cases reduce the company cost of benefits, severance, taxes and a full-time salary. As you may know, employees and outsourced contractors have different rights and obligations. Employers usually have to pay wages, holidays, sick leaves, and insurances to their employees. On the other hand, contractors do not receive such advantages, as they are outside of the company. Their insurances and taxes are usually paid either by the consulting company or the contractor himself. However, be careful and avoid using employees and disguising them as contractors, in order to save costs. This practice is known as “sham contracting” and is illegal. Outsourcing has great advantages, but do it in an honest and legal way.
3. Focus on “Core Competencies”
According to businessman Mark Cuban, “companies have to know their core competencies and focus on being great at them”. He is absolutely right. If you want to follow this approach, outsourcing engineers can be a smart and an economical strategy. Let them be the ones responsible of engineering and maintenance processes. By bringing technical specialists, you will perform faster and allow your energy to be used into the most fun parts of your business. Do what you are best at, that’s why we concentrate on only supporting your expansion and leave all the technical stuff up to you. Agile helps the most dynamic brands in the market open a new country or location, within 48 hours, compliantly with HR Outsourcing because all we focus on is staying ahead of immigration and employment law in Asia. We are specialist in Corporate Immigration (Sponsoring your employee Visa’s), PEO (Professional Employment Organization – employing your people for you in-country), Payroll and HR / Talent services.
4. Learn from experts
Whenever you have issues in your life, you often turn to your friends and family for their advice and opinions, right? Well, it is the same with companies. They often need an outside eye, in order to grow and innovate. For this reason, outsourcing can be a competitive advantage and give you access to rare resources that are not available internally. Indeed, external firms can quickly deliver senior talents with a wide range of skills and fresh perspectives. They can provide substantial improvements, innovation, and creativity to your projects. And the good news is that Agile can help to engage with experienced and high-performing consultants efficiently. We believe in sharing experiences and knowledge, we believe in mentoring and training our youth, we pride our selves on facilitating knowledge transfer. Check out some of our knowledge transfer programs with annuitants at www.agileHumansolutions.com.
6. Flexibility – Get with the gig economy!
According to the Bureau of Labor Statistics, most American workers will switch jobs 10 to 15 times between the ages of 18 and 48. There is an emerging trend towards the outsourcing/decentralising model, as companies want to increase their flexibility. Hiring contractors allows you to pay for a service only when you need it. For example, if you are planning to manufacture a hydraulic system, you can easily hire a mechanical engineer contractor knowing that he will be gone when the job is finished. This can be very advantageous for companies with fluctuating workloads!
Besides, workers tend to look for jobs that are more flexible and that have a better work/life balance. With the use of Internet, it becomes much easier to work in different countries, on different projects, for different companies, etc. Being a contractor allows to have more flexibility and grow skills and knowledge, by discovering different work environments. As a contractor working with Agile you get this as well as a community that to learn and play with as you move between projects. As you can see, flexibility is the new black.
In conclusion, outsourcing brings a lot of benefits when companies carefully use it. This practice can be very beneficial, especially for short-term or specialised projects. According to Deloitte, outsourcing will continue to expand at rates ranging between 12% and 26% in the next years. Indeed, with world’s globalisation and the Internet of things, many companies are hiring contractors for their projects in different locations. If you would like to learn how book at 15 minute discussion with us at your convenience [email protected] or visit www.agileHumansolutions.com.
Singapore has now been rated number #1 by the World Economic Forum as the most competitive country in the world in 2019. They received this along with 13 other global accolades showing Singapore as the global country of choice for business expansion. Whether you are a non-resident individual, small and medium company or a multinational, opting for Singapore company expansion will give you a launch pad to region’s other developing economies. This aside, you can benefit from Singapore’s wide network of trade agreements, ease of doing business, an attractive tax system, and sound intellectual property protection.
Singapore has a unique position in the global economy and a pivotal role as a business epicentre in the heart of Asia. The city-state has been consistently acknowledged as a global business hub – one that features developed infrastructure with education levels per capita among the highest in the world.
Global businesses will find it advantageous to site their headquarters in Singapore. Strong trade and investment make Singapore the most competitive Asian country and the world’s easiest place to do business. With access to local growth economies like China, India, Vietnam, Indonesia, Malaysia, Thailand, Taiwan, Japan, Korea and Myanmar; Singapore positions you perfectly to effectively expand via a hub and spoke strategy into your chosen markets with minimal investment. With all markets mentioned above, including Singapore, you can choose two routes. Company Incorporation, Singapore has taken much of the pain out of this but we would advise careful consultation on the process and liability. Or hit the road running and partner with a PEO (Professional Employment Organization) and have staff selling or operating for you within 24 hours.
Many multinational companies have chosen to set up their bases in Singapore, next to over 160,000 small and medium enterprises. Business owners all over the world regard Singapore as an ideal location to grow their businesses, with many of them using the country as a springboard to tap into other emerging markets in Asia. Flying is also a pleasure with up to 6.13 Million flight movements per month flying to neighbouring countries is as easy and cost effective as it can be. In 2019 62.2 million passengers pass through the airport annually which also makes it one of the worlds largest business networking hubs.
Singapore has established itself as a reputable financial and regional trading center. It is the world’s busiest port and a top location for investments in the Asia Pacific region. Factors such as strategic location, a competitive workforce, pro-business environment, and forward looking economic policies have enabled Singapore to be the world’s gateway to Asia.
Widely considered as Asia’s most political stabile country due to the stability of the ruling PAP party and their 54 year seat of power and zero corruption policies. Singapore’s open business policies and the use of English as the main working language all contributes being Asia Pacific’s second highest rated country in Corporate Governance after Australia.
Singapore’s Company Act (C50) is strict and fair ensuring no wriggle room for the execution of company and individuals fiduciary obligations. for intellectual property rights.
In 2015 – 2016 World Economic Forum’s Global Competitiveness Report Singapore was recognised for offering the best IP protection, infrastructure and incentives in Asia. It also comes a close second in that ranking globally, next to Finland and Luxembourg, which tied in the first place.
All this leads to greater customer trust of your brand, those that choose to trade in Asia also choose uncertainty in many countries but Singapore offers a far greater level of surety for you and your clients.
Personal income tax rates are marginal rates between 0 – 22% only! This alone attracts many business activities to Singapore. Having corporate, sales, support or other key staff based in Singapore can be efficiently achieved with a PEO partner, we can also advise a the list of great tax offsets you may be able to apply (like a 0% relief on those that travel more than 90 days per year).
Another benefit is that Singapore-based holding companies or headquarters can repatriate dividends from their directly held foreign subsidiaries to Singapore free of Singapore tax. Those whose foreign subsidiaries are engaged in substantive economic activities but are unable to meet the qualifying conditions for this tax exemption may apply for a specific exemption.
This is because Singapore adopts a territorial basis of taxation. Foreign-sourced income is taxed only when it is repatriated back into Singapore. In addition, tax is not levied on foreign-sourced dividends remitted back into Singapore if – the dividends are received from a country with a headline corporate tax rate of at least 15%, some tax was paid in that country (such as withholding tax paid on the dividends or income tax paid on the profits out of which the dividends were paid), and the exemption is beneficial to the Singapore company.
By situating their international HQs here, companies benefit from Singapore’s network of 76 comprehensive Double Taxation Avoidance Agreements. They also gain from Singapore’s many free trade agreements and the Investment Guarantee Agreements. Singapore, unlike some of its neighbouring countries and competing regional hubs have shown corporate tax softening as below.
Singapore makes entering and doing business in Singapore a breeze. They are consistently recognized by forums like World Bank’s Doing Business 2019 report. Again in 2019 they have been rated number 1 for being world’s best place to do business in the World Bank’s annual survey of 189 economies around the world.
We have set up entities in many counties which are well known to be “business hubs” and Singapore is still by far the easiest to country to enter. We can have your first employee engaged in a matter of hours or support incorporation within 1 day! Owning a company in Singapore can set up by anyone including foreigners and its all online!
The World Economic Forum reported this year that by 2030 two thirds of the worlds consumers would live and consume in Asia. This coupled with the growing support for Singapore over other Asia countries by global MNC’s paints a picture of growth for the financial hub in the next decade. With tax concessions, a strong currency, political stability and world leading personal safety more and more business will be coming to Singapore and I urge you not to miss out. Beyond this the barriers of entry, and exit, along with risk is low to doing business in Asia from Singapore. If you would like to know more we available at your convenience to share information on all the above topics.