An industry expert is predicting a rise in payroll outsourcing amongst many firms in the New Year, a development which could benefit contractors working for umbrella companies.

The leading recruitment outsourcing firm, hyphen, believes that more organisations will make greater use of outsource solutions next year, as part of the drive to improve standards and lower costs.

Zain Wadee, hyphen’s Director, anticipates a likely growth in outsourcing deals in the international recruitment process. Companies are looking to “leverage increasing mobility” as well as striving for consistency of practise, he said. Mr Wadee also believes that contractors working for umbrella companies could take advantage of the expected trend in recruitment process outsourcing (RPO), because it’s likely to be carried out across a broad range of services, covering areas well beyond normal talent acquisition.

The recruitment agency’s forecast comes hot on the heels of findings from a recent study commissioned by PricewaterhouseCoopers. This suggested that outsourcing could help offset job losses in both the public and private sectors in the near future. Moreover, the PricewaterhouseCoopers study also indicated that the rise of cloud computing and virtualisation would give small businesses the IT capabilities of much larger organisations. This is a development which is likely to be of considerable benefit to the small UK freelancer – companies using flexible supplies can create many new freelance opportunities with this technology in place.

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