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A blog banner by Magellan Solutions titled Customer Service Outsourcing Vs In-House Support Team: What Should You Choose?
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The Before & After Of Customer Service Outsource Industry

Home | Blog | Selective Outsourcing Of Payroll BPO Services

Selective Outsourcing Of Payroll BPO Services

By Yelyna

Updated on August 5, 2023

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Selective Outsourcing of HR BPO services

Companies choose certain functions for outsourcing. They may include payroll, benefits administration, and recruiting.

Selective outsourcing is the most popular form of outsourcing. Selective outsourcing is whereby an organization outsources transaction-oriented activities. Unlike relying on a single provider, selective outsourcing can be tailored to meet a company’s needs.

Some of the functions that are popularly outsourced here at Magellan Solutions include:


Outsourcing compensation functions such as payroll, salary surveys, job evaluation systems, and executive compensation plans may be in the form of:

  • Single-process outsourcing – An approach whereby a company picks one vendor to conduct all its compensation administration.
  • Integrated HR outsourcing – Compensation and workforce administration are outsourced in this approach.
  • Point solutions – The vendor provides compensation administration and call center support.

Workforce administration

Functions such as maintenance, development, and operations of HR IT systems are outsourced.

External recruitment

It involves outsourcing recruitment to obtain top-quality talent vital for the firm’s success. With recruitment-process outsourcing (RPO), the vendors turn the firm fixed expenses into variable expenses helping the organization with potential cost savings.


What are the payroll management outsourcing services?

Many SMEs routinely use payroll outsourcing. Meanwhile, larger companies can also benefit from this outsourcing of payroll. For example, when sending workers on international assignments to a new market. In that instance, a company can use either a local payroll provider or a GEO service. They offer comprehensive employment support to their clients. It includes a compliant payroll for all employees in that country.

Depending on their needs, a company may customize the payroll services. All the while retaining control of other aspects. The payroll functions typically outsourced to a third-party provider include:

  • Running payroll and making employee pay and withholding calculations
  • Depositing funds directly or issuing checks to employees
  • Calculating state and federal payroll taxes and making tax withholding payments
  • Filing required government reports
  • Administering employee benefits
  • Withholding social security and pension contribution

Suitable payroll outsourcing firm for all businesses

At Magellan Solutions, we take over some of the non-core HR Functions. Through this, we help enable organizations to focus on the core. Non-core internal business processes are prime candidates for outsourcing. Among them are the repetitive transactions related to providing human resources administration and services. For many years companies have been outsourcing. These are payroll services, tax preparation, and similar focused tactical functions. Some companies even progressed to the point that they outsourced more operations. FIt’sinding as many as six or seven individual HR functions are expected. These are administration, benefits management, and payroll. They are being outsourced to many providers.

Our HR possesses vast experience and expertise in handling industrial relations matters. We ensure compliance with all legal and statutory requirements as third-party outsourcing services to our clients. Critical HR  BPO Services are:

Is our organization looking to get into HR outsourcing? Contact us today to successfully outsource your HR functions! Or fill out the form below for a quotation of other services.


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      Selective Outsourcing Of Payroll BPO Services


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