IT Outsourcing Challenges: How an EOR Provides Effective Solutions

IT outsourcing challenges arise from a mix of internal and external pressures.

Externally, cybersecurity threats, labor shortage, compliance demands, and the rapid pace of technological changes present significant concerns. Internally, the need to maintain scalability and a positive remote work environment can disrupt operations and impact client satisfaction.

An often-overlooked fix is leveraging an Employer of Record (EOR).

By offloading HR functions to a secure full-service EOR, your business can concentrate on growth. The EOR manages compliance, simplifies workforce management, and handles administrative tasks, lightening your load.

We’ll highlight the key ways you can use an EOR to ease the major IT outsourcing challenges.

Reduce cybersecurity threats

Cybersecurity is a growing challenge for IT outsourcing businesses as cybercriminals adapt their tactics.

Microsoft reports that attackers are increasingly using cloud resources for large-scale DDoS attacks. The impact can be severe—damaged reputation, lost client trust, financial losses, and even business closure.

With the average data breach costing $4.88 million, constant vigilance and advanced protection measures are critical.

Prioritize partnering with EOR providers that uphold the highest security standards. This minimizes weaknesses in your infrastructure.

Deel EOR, for instance, complies with the most stringent global security standards. Deel lets you manage a global team while ensuring strong cybersecurity through comprehensive protection and real-time monitoring.

Its data protection and security measures include:

• Adherence to global standards for data security, including SOC1, SOC2, SOC3, GDPR, ISO 27001, HIPAA, AES-256, and CCPA
• AWS-hosted infrastructure with 24/7 SIEM SOC monitoring
• Continuous penetration testing
• Two-factor authentication (2FA) and multi-factor authentication (MFA) options
• Data encryption at-rest and in-transit
• Daily backups and strategic database placement to facilitate swift recovery from attacks, data loss, or corruption
• Comprehensive network security

Additionally, Deel is a full-service EOR that supports various HR functions within a centralized platform. Centralization enhances security by minimizing the number of systems handling sensitive data. It also ensures consistent application of security policies across your workforce.

See also: Payroll Security in 2024: How to Protect Your Company

Tackle talent acquisition and retention challenges

Over the past nine years, over half of tech organizations have reported that skills shortages hinder high-quality services.

The situation toughens in areas such as AI, blockchain, and cybersecurity where new technologies are always emerging. Finding talent with the specialized skills and knowledge required to meet these demands has become difficult.

The solution is an EOR that allows you to compliantly hire global talent. It should also boost retention through an enhanced employee experience.

Deel EOR has entities in over 150 countries. You can hire top talent, wherever you find it, without the hassle of establishing entities.

Within Deel EOR, you’ll also find free research tools to identify the best countries for hiring. You gain easy access to real-time global labor market insights, helping you offer competitive salaries and benefits.

Deel EOR supports you in retaining talent through a positive employee experience created through:

• Fast and streamlined onboarding
• Competitive benefits and perks
• A self-service platform for workers to manage time-off requests, payslips, and personal information
• Multiple payment and withdrawal options, such as Direct Debit, Wise, Brex, Deel Card, and Deel Advance
• A dedicated HR experience team providing support to EOR workers in their time zones and languages
• Slack HR plugins that streamline communication, facilitate real-time recognition, and create a sense of belonging among global workers

Discover how SiteMinder hired over 50 employees in 11 countries with Deel while saving three days on admin work.

See also: Global Recruitment: Must Have Licenses & Regulations

Keep up-to-date on regulatory compliance

While rapid technological advancements in the IT sector drive growth and efficiency, they often outpace existing regulations. As new technologies and practices emerge faster than laws can adapt, IT businesses face higher risks of non-compliance.

Keeping up with these constantly changing laws requires extensive research and significant manpower. Non-compliance can lead to fines, legal issues, and a damaged reputation.

An EOR with compliance management capabilities mitigates these risks by ensuring adherence to the latest laws and regulations. This allows you to focus your resources on leveraging current innovations for strategic growth instead of navigating regulatory demands.

Deel EOR ensures that all contracts comply with labor regulations across various jurisdictions. A Compliance Hub tracks and updates you on regulatory changes, provides workforce insights, and flags potential risks.

To further support compliance, a team of over 200 legal experts is available for guidance on global labor laws.

Discover how Turing, a leader in AI and generative AI products, creates over 5,000 compliant contracts using Deel. These contracts adhere to the labor laws of the 60+ countries where its workers reside.

See also: The Key to Continuous Company Compliance in Today’s Global Landscape

Overcome remote work challenges

The IT sector is well-suited for remote work because it relies on digital infrastructure for delivering managed services. With a third of employees in remote-capable jobs preferring full-time remote work, most IT workers are likely to choose this option.

However, this shift introduces challenges. Maintaining cohesive team dynamics and managing equipment logistics compliantly becomes difficult. Coordinating a distributed team while ensuring smooth operations and secure tech access from various locations proves challenging as well.

Deel provides its EOR solutions through a cloud service, which simplifies the management of remote workers.

Its web-based nature ensures that both remote and on-site workers have access to the same system. It creates real-time visibility of important documents and updates, such as leave requests, to HR teams.

Plus, Deel’s integration capabilities sync data from your time and attendance systems with payroll and HR processes. This ensures that all records are accurate and up-to-date without manual intervention.

The result is efficient workflows and uniform employee management practices, no matter their location.

Additionally, with Deel IT, you can manage the procurement and shipping of the infrastructure your remote workers need. Deel simplifies the process, removing the headaches of customs issues and delayed deliveries.

Discover how Quantium uses Deel to offer remote work options while ensuring compliance and a great employee experience.

See also: How Digital Nomads Can Contribute To Enterprise Growth

Address scalability issues with an adaptable solution

Factors such as project-based work, tech upgrades, and seasonal trends can cause fluctuations in the workloads of IT service firms. As modern businesses adopt new technologies and digital solutions, the demand for IT professional services becomes even more unpredictable.

This rising demand leads to increased workloads, which necessitates hiring and managing more workers. Consequently, these demands can amplify HR responsibilities and require additional HR staff.

When demand falls, the challenge becomes adjusting HR processes for reduced workloads and managing excess staff.

An EOR like Deel can help you manage the direct impact of these fluctuations on your HR functions.

Deel’s platform integrates core functions such as HR, payroll, and compliance into a single, unified system. This integration enhances operational efficiencies and leverages economies of scale. It ensures seamless HR management without the cost of hiring and firing extra personnel.

What you get with Deel’s platform includes:

• Global payroll management: Consolidates your international payroll operations, including tax deductions and other location-specific filings
• Automated workflow builder: Enables the creation of customized workflows that minimize manual, repetitive administrative tasks
• Deel HRIS: Supports functions like expense management, time-off tracking, reporting and analytics, document management, and centralized data management
• Deel Immigration: Assists with fast work visa processing for worker relocation

Discover how DevBase, a software development company, saves over 278 hours monthly on HR operations with Deel. Deel also reduces its HR function workload by 80%.

See also: 7 Workforce Management Tools to Ramp up Your Global Team

Fill skill gaps and invest in relevant continuous development

As technology advances rapidly, IT teams are under constant pressure to stay updated with the latest innovations. Continuous training and development become necessary to fill skill gaps, which companies must balance with meeting client demands.

Striking this balance can be challenging, as dedicating time and resources to training may strain immediate business priorities. However, businesses that neglect continuous learning risk falling behind competitors, offering outdated solutions, and jeopardizing long-term market relevance.

An EOR that offers learning and development features can solve this problem. It supports tailored upskilling and reskilling opportunities without overwhelming internal teams.

Deel, through Deel Engage supports the continuous training of your workers. It's a comprehensive suite of tools that supports personalized learning and development. Key features include:

• Internal training courses you can create using an intuitive AI-powered drag-and-drop builder
• External training courses from reputable IT providers to supplement your internal offerings
• Diverse training formats, both traditional and modern, to deliver engaging training
• Automated course assignment to assign relevant courses based on criteria such as job roles and skill gaps
• A dashboard for each training program to track progress and completions
• One centralized training library for past and current programs

Deel Engage goes beyond standard training solutions by integrating employee training with other facets of talent management, including:

• Competency-based career progression frameworks: Clearly outlines how individual workers can advance within the organization
• 360° reviews: Provides bias-free performance appraisals through comprehensive feedback
• Goal-setting frameworks: Aligns individual goals with broader company objectives

This integration establishes a dual focus that maintains training effectiveness. It ensures that training updates skills while also aligning with individual career paths and company goals.

Discover how DataGuard, which creates security and compliance software, created 195 learning resources for its staff with Deel.

See also: How to Integrate Learning and Performance Management for Driving Business Results

Conquer the challenges in the IT outsourcing industry with Deel

There are numerous ongoing operational hurdles IT outsourcing businesses are facing today. It’s a tough reality. However, with Deel EOR, you can optimize operations, drive growth, and position yourself as a trendsetter in the industry.

"Deel has been the ultimate growth accelerator." —Estefania Tejo, VP of People, d.local

Deel is a full-service EOR that:

• Minimizes cybersecurity threats with global security standards and advanced protective measures
• Centralizes HR functions in one system, enhancing cybersecurity while supporting scalability
• Enables global hiring without requiring foreign entities
• Improves talent retention with tools designed to enhance the employee experience
• Eliminates compliance risk through a comprehensive regulatory framework and real-time monitoring of labor laws across various jurisdictions
• Supports remote work with cloud-based solutions with Deel IT to manage device shipping and logistics.
• Promotes employee growth through comprehensive and flexible learning and development tools

Book a demo to see how Deel can address the unique IT outsourcing challenges you’re facing.