1. TEMPERORY NEED:
A- An incumbent staff member goes on leave or falls unexpectedly ill and a short term replacement is needed.
B- A full timer is absent for a long period of time, the client under such a situation would seek a Temporary employee from a reputable sourcing company
C- An institution signs a contract to perform a particular assignment or a project for a limited period of time. It will source out all the non-core staff required for the completion of the assignment.
D- A firm prospecting business potentials in a new market and does not have the supporting staff that could assist it with the endeavor, it would resort to sourcing out staff in the interim period.
2. BUDGET LIMITATIONS:
When an institution has a budgeted number of head Count that it could have on its payroll, and needs certain additional skills, it would resort to sourcing out its needs until such time when the additional needed staff are budgeted for.
3. REDUCING ADMINISTRATIVE COSTS AND HR WORK LOAD:
Institutions that wish to reduce the administrative load of Its HR department, and free it from minor routine Personnel matters to concentrate on strategic HR policies, it would resort to outsourcing the clerical staff.
4. MINIMIZING LABOR RELATIONS DISPUTES:
Labor disputes in most countries could be of sticky nature, and usually ends up being costly and timing consuming. Hence the emerging trend in the industrial world is to source out all their supporting services staff.