Penney’s recent declaration that it is outsourcing approximately 100 roles from its Dublin head office to Mumbai has put outsourcing into the spotlight again for Irish businesses. The roles for Penney include finance, procurement, and human resources, and demonstrate a trend that has been evolving the business context for decades across Ireland. 

The practice of outsourcing has evolved from being primarily a cost-effective option to a strategic necessity, focusing on core competencies, accessing specialised expertise, and dealing with staff shortages due to Ireland's full employment market.

The Historical Context of Outsourcing in Ireland

In Ireland, outsourcing as a business activity has a history of a couple of decades. What started as a mere cost-saving measure has developed into a well-developed business model that promotes innovation, efficiency, and competitive advantage.

Big corporations were the early adopters of outsourcing models. They quickly recognised that a specialised third-party provider or participant could perform certain business functions more effectively.

The financial services industry was one of the first industries to adopt outsourcing. Large banks and insurance companies began to transfer back office operations, data processing, and customer service to third-party providers. This trend took off during the 1990s and 2000s as companies began to understand the savings and potential quality improvements by using specialists.

Similarly, the manufacturing sector embraced outsourcing widely, especially with respect to logistics and supply chain management. Companies realised they could benefit as logistics firms had dedicated logistics expertise, better distribution networks, tracking systems and scales of purchase that would be expensive to develop in-house.

 

Department-Specific Outsourcing Trends

1. Finance Department Outsourcing

Finance departments have taken the lead in the outsourcing revolution. Large companies in Ireland have turned to specialised financial service providers to take care of everything from bookkeeping and accounts payable management to financial analytics and reporting. 

This shift is due to various factors that include expertise in the field, the desire to reduce operational costs, and the opportunity to access advanced financial technologies without significant capital investment.

Many major operations, such as AIB, Bank of Ireland, Aer Lingus, Vodafone, and other service companies in Ireland, have outsourced significant parts of their finance functions to offshore locations with a positive financial service and compliance record, while these outsourced functions are still fully controlled.

2. Human Resources Outsourcing

HR outsourcing has become more complex over the years. What began as basic payroll processing has developed into wide HR services such as recruitment, employee benefits administration, training and development, and performance management. 

Big companies have recognised that HR outsourcing partners can have:

• better recruitment networks, 
• superior HR systems and technology, and 
• expertise in employment law, etc.

Significant numbers of Irish-based multinational corporations have successfully outsourced various HR functions, allowing their internal teams to focus on strategic initiatives such as organisational development and culture building rather than administrative tasks.

3. E-commerce Outsourcing

The Digital revolution has given rise to new types of outsourcing opportunities, especially in the e-commerce domain. As businesses throughout Ireland have developed their online presence, many of them have outsourced their operations to remote e-commerce service providers. This includes everything from website development and maintenance to digital marketing, customer support, and order fulfilment.

Big retailers are aggressively outsourcing e-commerce functions. Various Irish retail chains have partnered with specialised e-commerce providers to manage their online platforms, allowing them to rapidly scale their digital operations to quickly expand their business, without having to develop extensive internal technical skills.

 

The Rise of Strategic Outsourcing for SMEs

Outsourcing has benefited large business corporations for some time now, with medium and small enterprises (SMEs) lacking access to these benefits. In the past, outsourcing often required minimum volumes of usage or work commitments, which bypassed SMEs. 

Acute staffing shortages in key industries have pushed both outsourcing and inward migration of critical skills to unseen levels, and this trend is set to continue.

Now, outsourcing usage has changed, and there are emerging service providers that recognise the distinct needs of SMEs and have been able to come into the market.

This is where companies like Hunter Marshall are having a meaningful impact. By providing designed outsourcing services and solutions for medium and small enterprises, these companies are democratising the advantages that large corporations have enjoyed for a long time.

 

Hunter Marshall: Bridging the Gap for SMEs

Hunter Marshall, an Irish company, represents a new generation of outsourced staffing providers that recognise the unique challenges and opportunities faced by SMEs in Ireland. Their approach to outsourced staffing solutions addresses several critical pain points that smaller businesses face in today's competitive environment.

1. Addressing Staff Shortages

One of the biggest challenges facing SMEs in Ireland and the UK is the unavailability of qualified staff in priority areas. This challenge is particularly acute in specialised functions like finance, HR, and technical, where the talent competition is high, while salary expectations may be out of reach for many smaller organisations. Hunter Marshall's outsourced staffing solutions provide SMEs with the access they require to skilled professionals who would not be available without the agency's help.

Hunter Marshall utilises its network of qualified professionals and established relationships to provide SMEs with the expertise they require. They help SMEs by avoiding the long recruitment process and premium salary costs of not only employing a permanent hire but also the indirect costs (like training costs, office overhead, lost time while an employee is on notice, etc.).

2. Achieving Significant Cost Reductions

The most compelling aspect of Hunter Marshall's offering is the potential for SMEs to achieve cost reductions of at least 60% compared to traditional staffing approaches. This dramatic cost savings is achieved through several factors that leverage the efficiencies of outsourcing without compromising on quality.

The cost advantages come from various factors: 

• The first factor includes outsourcing companies like us to operate in locations with lower costs, allowing our clients to have the same expertise at reduced rates. 
• Second, by serving multiple clients, outsourcing companies achieve economies of scale and can invest in advanced technologies that individual SMEs cannot afford. 
• Third, businesses eliminate recruitment, training, and employee benefit costs, providing immediate financial relief for smaller companies with tight budgets.

An example of cost per month would be:

The average salary of an Accountant with 5 years of experience in Ireland is typically €60,000 plus annually. With Hunter Marshall's services, you can secure the expertise of similarly qualified accountants for just €24,000 in total without additional long-term liabilities accruing.

An E-commerce Executive in Ireland with 3-5 years of experience has an average salary ranging from €45,000 to €55,000 per year. Through Hunter Marshall's outsourced staffing solutions, businesses can access skilled e-commerce executives for 60% less than €18,000 per year.

Similarly the typical salary for an Accounts Payable executive in Ireland ranges from €40,000 to €50,000 per annum. Hunter Marshall's outsourced staffing services enable companies to secure experienced Accounts Payable specialists at competitive rates, with €18,000 per annum.

3. Flexible and Scalable Solutions

Hunter Marshall does not require a long-term commitment and does not have fixed costs compared to traditional employment models. Its model provides SMEs with the ability to hire temporarily and without limiting staffing costs, for an unlimited time. It is useful for smaller businesses that have unpredictable, seasonal staffing needs as well as growth phases that require agile staffing solutions. 

For SMEs, the scalability component is also important when exploring new and/or geographic markets and or developing a new product. Scaling without risking long-term employees mitigates the uncertainty that exists when looking to expand and test new products and/or new initiatives. Hunter Marshall provides temporary staff to embark on initiatives, with the ability to scale the resources based on early and mid-term results.

 

The Strategic Advantages of Modern Outsourcing

The development of outsourcing as a cost-saving technique into a strategic business tool has opened up new possibilities for all sizes of companies. Contemporary outsourcing alliances present a number of important benefits over and above plain cost reduction.

1. Access to Specialised Expertise

One of the most important benefits of modern outsourcing is the availability of experts who are hard to find and hire using traditional methods, at a reasonable cost. Outsourcing is desired by SMEs where particular expertise is required but cannot justify hiring full-time specialists. By partnering with outsourcing companies, small enterprises are able to access the same level of expertise that is enjoyed by big businesses without the high costs and liabilities.

2. Technology and Infrastructure Benefits

Outsourcing providers heavily invest in technology and infrastructure to effectively serve their clients. What this implies is that businesses that engage with such providers get access to advanced systems and processes at minimal capital outlay. For SMEs, this can be a source of competitive edge in being able to do things with the same level of technology as much bigger organisations.

3. Risk Management and Compliance

As regulatory requirements become increasingly complex, particularly in areas such as data protection, employment law, and financial reporting, outsourcing can provide valuable risk management benefits. Specialised providers stay current with regulatory changes and have the expertise to ensure compliance, reducing the burden on internal teams and minimising the risk of costly compliance failures.

4. Option for team members to be transferred to Ireland 

Hunter Marshall provides clients with a unique opportunity to transition exceptional remote team members into direct, on-site employees in Ireland. This service allows employers to retain top-performing talent by offering them permanent relocation and employment opportunities, subject to visa approval.

Giving the employers the chance to engage the employee remotely on an outsourced basis for a period of time allows for a structured trial period where excellent potential employees can be evaluated before then considering relocation if appropriate. 

Hunter Marshall manages the entire transition process on behalf of clients, handling visa applications, relocation logistics and employment documentation to ensure a seamless transfer. This approach enables employers to strengthen their teams with proven professionals who already understand their business, culture, and requirements while eliminating the typical risks and uncertainties associated with traditional hiring processes.

 

The Future of Outsourcing in Ireland

The recent Penney announcement reflects broader trends that are likely to continue shaping the business landscape in Ireland. As companies face increasing pressure to remain competitive in global markets, outsourcing will continue to evolve as a strategic tool for achieving operational efficiency and accessing specialised capabilities.

For SMEs, the expanding availability of tailored outsourcing solutions represents a significant opportunity to level the playing field with larger competitors. Companies like Hunter Marshall are pioneering approaches that make the benefits of outsourcing accessible to smaller businesses, potentially transforming how these companies operate and compete.

The key to successful outsourcing lies in selecting the right partners and structuring relationships that align with business objectives. For SMEs, this means working with providers who understand their unique challenges and can offer flexible, scalable solutions that support growth and development.

Conclusion

The business outsourcing landscape in Ireland has evolved dramatically over the past few decades, transforming from a simple cost-reduction strategy to a sophisticated tool for achieving competitive advantage. While large corporations have long benefited from outsourcing various departments, including finance, HR, and e-commerce functions, the emergence of specialised providers like Hunter Marshall is now making these advantages accessible to SMEs.

The combination of addressing staff shortages, achieving significant cost reductions of up to 60%, and providing flexible, scalable solutions positions outsourcing as a valuable strategy for businesses of all sizes. As the business environment continues to evolve, companies that embrace strategic outsourcing partnerships will be better positioned to focus on their core competencies while accessing the specialised expertise and operational efficiencies needed to thrive in competitive markets.

The Penney example demonstrates that even well-established companies continue to see value in outsourcing as a means of supporting growth and operational efficiency. For SMEs looking to compete effectively in today's market, partnering with specialised outsourcing providers represents an opportunity to access capabilities and cost structures that were previously available only to much larger organisations.

 

FAQs

Q1. What is Outsourced Staffing?

Ans. Outsourced staffing is a business practice where companies hire external agencies or service providers to handle their recruitment, hiring, and workforce management needs instead of managing these functions internally.

Q2. Is outsourcing only suitable for large corporations? 

Ans: No, outsourcing is accessible to small and medium enterprises as well along with large organisations. Modern outsourcing solutions offer flexible and scalable options that suit businesses of all sizes and budgets.

Q3. How much can companies save through outsourcing with Hunter Marshall? 

Ans: Companies can achieve cost reductions of 60%-70% compared to maintaining in-house operations. The exact savings depend on the role being outsourced, the experience of the candidate and the local market rate for the skills.

Q4. What services does Hunter Marshall offer to SMEs? 

Ans: Hunter Marshall provides outsourced staffing solutions designed for medium and small enterprises, including finance, HR, e-commerce, cybersecurity, and administrative support, among others. Their services help fill staff shortages while reducing operational costs by up to 60%. In a nutshell, we understand the demands of the role, we find a selection of suitable candidates and present them to the client, the client chooses, and Hunter Marshall becomes the employer and the hired candidate works remotely for the client who is billed monthly as a service by Hunter Marshall.

Q5. How do outsourcing costs compare to hiring permanent staff? 

Ans: Outsourcing eliminates recruitment costs, employee benefits, training expenses, and infrastructure investments. It provides significant savings while offering access to higher-level expertise than companies could afford to hire permanently.

Q6. How has outsourcing evolved in Ireland? 

Ans: Outsourcing has evolved from basic cost-cutting to strategic partnership arrangements. Companies like Penneys continue to use outsourcing for growth support. Outsourced staffing companies like Hunter Marshall offer sophisticated solutions tailored to different business sizes and sectors.

Q7. How much per month does an outsourced staff member cost?

Ans: The per-month cost of outsourced staff at Hunter Marshall is:
Entry-Level Executive Positions: The total monthly cost starts at €1,500 plus VAT per month.

Mid-Level Executive Positions: Account Executives and HR Executives command salaries ranging from €1800 per month.

Senior Executive Positions: For senior executives and technical roles, salaries range from €2500 per month upwards, depending on the role.

Q8. If we find a team member from Hunter Marshall becomes crucial to our business, and we want them to move to Ireland to be on site in our office, is this possible?

Ans: Yes, it is possible. Hunter Marshall offers clients the opportunity to transfer exceptional team members to Ireland to work directly in your office. If a team member becomes crucial to your business, they can relocate to Ireland and potentially become your direct employee, subject to visa approval.