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The Role of Outsourced Manpower in the Saudi Vision 2030

Posted on 6/01/2025
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As Saudi Arabia looks to reshape its economy, drive innovation, and foster a more diversified private sector, its demand for skilled labour is growing. Outsourced manpower offers a unique and strategic solution to staffing challenges.

 

Join us as we explore the role of outsourced workforce provision in Saudi Vision 2030 and how we can help you deliver staffing where you need it.

 

Outsourced Manpower: The Context of the Saudi Vision 2030

Saudi Arabia is reducing its dependency on oil revenue by modernising industries, introducing new ones and creating a thriving investment market.

 

From futuristic mega-projects like NEOM and The Red Sea Project to expanding sectors such as renewable energy, tourism, and technology, the region is changing fast. And this presents a challenge for organisations operating in the Kingdom. There simply isn't enough skilled labour for these new initiatives. The same is true for global brands looking to invest in the region - they can't always find the talent they need for their projects.

 

An appreciation for the context of workforce challenges has required thinking outside the box.

 

Workforce outsourcing allows companies to tap into specialised talent pools, scale operations efficiently, and remain competitive without the long-term commitment of traditional hiring practices. With the right partner, outsourcing also allows companies to draw from talent outside of the country. And this is why our outsourced workforce service has always included handling visas, work documents and relocation.

 

The Benefits of Workforce Outsourcing for Organisations Operating in Saudi Arabia

For organisations looking to thrive in Saudi Arabia's new economy, staff outsourcing presents several compelling benefits:

  1. Agility and scalability: An outsourced workforce allows companies to scale their workforce up or down based on project demands. This is particularly crucial for phased builds in infrastructure and industries.

  2. Cost-efficiency: Outsourcing also offers a significant financial advantage. Where partners cover the costs of hiring, training, and maintaining in-house staff, a company gains a higher proportion of profit. This is important for industries or projects which require big investments.

  3. Access to specialised skills: By outsourcing, companies can effectively hire the skills they need when they need them through contingency labour. This helps them innovate and build long-term sustainable industries like renewable energy.

  4. Focus on strategy: By outsourcing non-core functions, organisations can concentrate their resources on strategic initiatives that drive growth. This is particularly important in new industries where top market positions are still up for grabs.

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How Outsourced Manpower Has to Align with Saudi Vision 2030's Goals

For companies to truly benefit from outsourced manpower, workforce providers must align their processes with Saudi Vision 2030's goals. This means:

 

●       Curating a database of top talent: Building a database of candidates is only helpful if it is heavily curated for the markets partners work in. Saudi Arabia has been clear about its intent for growth and innovation, so to provide the right skills at the right time, providers must build their candidate base.

●       Offering training: Where grassroots skills are lacking, outsourcing partners need to build in more training. Developing a talent pool ripe for new opportunities will be necessary. Here, we provide L&D both before and during job placement.

●       Developing scalable solutions: As industries change and economics develop in the region, workforce partners must provide fast and reliable solutions. Offering scalable or phased contracts is the way forward.

●       Keeping compliant with Saudization (Nitaqat): Policies are changing fast, and the top one to watch is Nitaqat. Providers must ensure compliance, which will mean balancing their candidate database to ensure they can achieve the correct staff ratio for every project.

 

How mselect is Helping Companies Operate Under Saudi Vision 2030

We (mselect) have been operating in the Middle East for over a decade, so when we set up a base in Saudi Ara bia, we already understood the Saudi Vision 2030 and its workforce implications. Fortunately, we were already in a position to offer a holistic approach to staffing challenges. So, rather than needing to design and execute solutions, we doubled down on our core offer: complete business services.

 

For clients already on the ground, we provide opportunities to scale, diversify and pivot with services like Employer of Record (EOR), recruitment, payroll and learning and development (L&D).

 

For clients new to the region, we offer opportunities to infiltrate and disrupt new markets. Our services include corporate formation, document clearing, infrastructure procurement and operations, immigration and relocation, EOR, contingent and permanent staff and more.

And we do that with local understanding, which is crucial for compliance, employee/employer relations, and cultural sensitivity.

 If you want to meet our team, our Riyadh office is centrally based in the Kingdom Centre. Otherwise, contact us by email to learn how we can help your Saudi-based business grow.