Intelligent Fin.tech Issue 21 | Page 34

FEATURE

partner , offering expertise , scalability and operational efficiency . Regular communication , performance monitoring and access to real-time reporting ensures that the business is always in control , while delegating specific tasks to the outsourcing provider .”
Myth : Sensitive employee data is not secure
Many organisations believe that the best way to mitigate the risk of security breaches is to store payroll and HR data inhouse . McAlister points out , however , that payroll and HR outsourcing can actually improve data security by leveraging specialised expertise and technologies that a typical in-house team may not be able to provide .
“ Established outsourced providers incorporate robust security measures in their platforms and systems , including advanced encryption technologies , strict access controls and state-of-the-art data centres .
“ Additionally , they adhere to strict compliance requirements such as the European Union ’ s GDPR and South Africa ’ s POPIA to ensure data protection and privacy , and are subjected to regular audits , security assessments and risk management practices to further mitigate potential threats .”
Myth : Transition complexities will disrupt business operations
On the contrary , reputable outsourced services providers facilitate a structured migration process that ensures minimal disruption .
“ They develop detailed transition plans tailored to each client ’ s needs , outlining
Persistent myths and misconceptions are clouding business leaders ’ perceptions and hindering informed decisionmaking around payroll and HR outsourcing .
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