outsourcing in indonesia

Why Choose Outsourcing in Indonesia and How to Perform Evaluation

  • InCorp Editorial Team
  • 10 August 2020
  • 3 minute reading time

Nowadays, outsourcing has become a trend in the world of business in Indonesia. Outsourcing has been accepted by organisations and companies as a way to redefine and re-energise business.

Management third party, also known as an outsourcing provider, is an organisation that offers services to companies to help them boost business growth by letting them focus on strategies and core business functions, instead of doing dull tasks such as bookkeeping, payroll processing and accounting.

In an organisation life cycle, here is how an outsourcing policy plays an important role:

  • Phase 1 – Introduction. The strategy is to choose experienced staff, so the training program has not yet become an integral part in this phase.
  • Phase 2 – Growth. The strategy to overcome the accumulation of work that has not been completed (backlogs) and scheduling is implemented by doing recruitment,  and selection is improved to get new staff.
  • Phase 3 – Maturity. When the organisation and staff begin to stabilise, it needs to develop new products or services, so they need to outsource temporary workers for that.
  • Phase 4 – Decline. In this stage, the best fit strategy is product diversification and cost reduction. The organisation is taking the option of closing existing facilities, early retirement, or even employee termination (if necessary). This phase requires outsourcing to support organisations that carry out downsizing strategies.

Reasons to Outsource and Common Outsourcing Services in Indonesia

Companies in Indonesia need to consider outsourcing because of the following reasons:

  • To reduce and control operating costs
  • To increase company strategic focus
  • To have access to world-class organisations
  • To have resources that the organisation does not have
  • To share risks


Among the many outsourcing services available, the following are deemed the most beneficial for businesses in Indonesia:

  • HR outsourcing services that cover recruitment, payroll, outplacement, compensation survey, employee relation, health insurance, background check, temporary worker recruitment, benefit management, training and EEO/affirmative action, among others
  • Tax and accounting services that cover income statement, invoice issuance, general ledger, personal income tax, corporate income tax and audit, among others

Performance Evaluation of Outsourcing Provider

To evaluate whether cooperating with an outsourcing provider is going to be effective and beneficial, the following points must be consider:

  • Outsourcing services provided
  • Scope of resources owned
  • Ability to meet specifications
  • Commitment to product and service quality
  • Previous experience
  • Flexible contract conditions
  • Price and value

Outsourcing in Semarang, Indonesia: Why?

Semarang is the ideal location to start your Business Process Outsourcing (BPO) in Indonesia. Compared to other Indonesian regions, the labour costs are relatively lower. What is more, Semarang is filled with plenty of skilled human resources.

Business Process Outsourcing with Cekindo

Having a team of professional consultants and experienced specialists, Cekindo understands the needs of clients and the challenges they encounter when running business operations in Indonesia.

As a leading outsourcing provider in Indonesia, we offer comprehensive outsourcing services that include accounting and tax reporting, recruitment outsourcing, Employer of Record (EOR), payroll processing and HR establishment.

Get to know more about how our business process outsourcing services in Indonesia, particularly in Semarang, can help your business. Fill in the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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