How Manpower Outsourcing Services Support the Banking Sector
One of the most popular industries for manpower outsourcing is the banking and financial services sector. From seasonal workforce needs to the heavy-lifting of payroll management and compensation and benefits packages, banks will often outsource a large portion of their workforce to HR consultancies, like Tawzef.
The global business process outsourcing (BPO) market is forecast to reach $525 billion by 2030, according to Grandview Research. The market is set to grow at a compound annual growth rate (CAGR) of 9.8% between 2025 and 2030.
The top drivers for this growth are the financial services, IT, and telecom industries. The report also found the “finance and account segment” to dominate the market and account for over 21% of revenue share in 2024.
In this article, we’ll take a closer look at manpower outsourcing for banks and financial services companies, including benefits, opportunities, roles, and more. We’ll also show you how manpower outsourcing can help you with compliance issues.
What Are the Benefits of Manpower Outsourcing for Banks?
While the benefits of manpower outsourcing can be universal, for banks and companies operating in the financial services sector, benefits may vary based on roles and functions.
Here are the top benefits for banks and fintech companies:
Boosts operational resilience
Manpower outsourcing offers banks critical operational resilience and stability. It allows banks and financial services companies to transfer non-core operational risks to a specialized partner, ensuring business continuity across all service lines without disruptions.
Ability to scale up or down as needed
Working with a manpower outsourcing provider or employer of record (EOR), like Tawzef, helps you scale easily.
Whether it’s to scale up to accommodate seasonal demand and intense operations, or to scale down due to project requirements, economic volatility, or calmer months. This ensures better optimization and resource allocation.
Access to niche and rare talent
Talent is hard to come by. Especially in fields like banks, financial services, and fintech startups, where talents may need financial acumen combined with technical expertise.
Manpower outsourcing provides the banking and financial sector with immediate access to specialized, high-demand expertise.
It allows you to secure and retain top talent in roles like branch managers, compliance analysis, customer or technical support, and other roles, where internal recruitment often faces significant difficulty.
Supporting business digital transformation and market agility
The value for manpower outsourcing, especially in the banking sector, has moved beyond simple cost-cutting. It’s now directly connected to supporting high-level goals like digital transformation and market agility.
Research suggests that a growing proportion of banks are outsourcing for these strategic objectives.
ROI analysis
Many companies continue to view HR as an administrative function and cost center, a common HR misconception. Today, HR outsourcing solutions function as a value driver, helping organizations reduce overhead, minimize risk, and train teams.
In other words, the return on investment (ROI) from manpower and HR outsourcing is seen in enhanced service quality and significant speed-to-market gains.
Employee outsourcing solutions reduce recruitment overhead costs and internal employee turnover, resulting in substantial savings over several years.
Manpower outsourcing agencies, like Tawzef, free up internal capacity, allowing banks to fully concentrate on scaling core operations, enhancing employee engagement and retention, and driving profitability.
Research has found 80% of companies use HR outsourcing solutions, citing benefits such as better cost optimization, HR expertise, compliance, among others.
Other HR outsourcing statistics show companies that have outsourced at least one HR function saved 20-40% compared to those with an in-house HR team.
Improvement across HR and recruitment metrics
To track success, you need to have key performance indicators (KPIs) in place. These also apply to outsourcing functions. For example, common recruitment KPIs include time-to-hire and quality-of-hire.
Meanwhile, HR KPIs your manpower outsourcing agency would be responsible for include employee turnover rate, overtime expenses, employee productivity, among others.
In the banking sector, outsourcing your manpower can also mean tracking KPIs such as transaction accuracy, average handling time, and first-call resolution rates. The aim is to ensure consistent, high-quality performance.
Your team operates in-house
Last but not least is your outsourced team operates in-house or at any of your branches or locations as needed. Their compensation and benefits packages, payroll processing, salary transfers, and other processes are carried out by the manpower outsourcing provider at the end of each month.
You can recommend promotions, ask for additional talents, and manage the team as needed in collaboration with your outsourcing partner.
Manpower Outsourcing for Banks: Top Banking Roles
There are roles banks may not want to outsource, but others can be outsourced to recruitment or manpower agencies to reduce the burden of hiring operations, salary and benefits management, and others.
Here are the most commonly outsourced banking functions. Remember, these roles operate inside your bank’s branches and administrative buildings as needed.
High-volume, non-core operations (Back-Office BPO)
The back-office represents the largest segment for manpower outsourcing due to its process-driven, repeatable nature. Outsourcing these functions ensures regulatory compliance and scalability without increasing internal fixed staff.
- Data entry, transaction processing, and administrative support are handled efficiently externally.
- Mortgage and loan processing, including origination and servicing documentation, are often outsourced to manage volume fluctuations.
- Payment processing, clearing, and settlements benefit from the provider’s dedicated technology and staff training.
Technical support and IT roles
As digital banking accelerates, technical outsourcing becomes vital for both foundational and strategic functions:
- IT infrastructure management and help desk support (including technical support) maintain operational continuity for the bank’s customers.
- Application development and maintenance (ADM) ensures continuous updates and management of digital banking platforms.
- Cybersecurity monitoring and threat intelligence can benefit from specialized third-party security operations centers to protect sensitive assets.
Customer experience and engagement (Front-Office)
Outsourcing customer-facing roles ensures high-quality service and scalability across all channels.
- Multichannel contact centers, including voice, chat, email, phone, and social media moderation, provide essential customer service and technical support.
- Specialized collections and fraud monitoring are commonly handled by external or outsourced teams that can scale rapidly to manage these critical, high-risk operational areas.
Further reading: All You Need to Know about Tawzef’s Call Center Outsourcing Services
Banking and Financial Services: Common Service Delivery Models
For banking and financial institutions, manpower outsourcing is not a single, huge service. It’s a suite of specialized delivery models designed to address distinct operational and compliance needs.
By engaging these varied services, banks can selectively transfer administrative complexity and risk, enabling a greater focus on core banking functions.
Recruitment and staffing
This core service involves finding, vetting, and supplying highly skilled professionals directly into the bank's operational structure.
It goes beyond simple CV screening practices and placement to cover strategic sourcing for critical, high-turnover roles like bank tellers, specialized loan officers, compliance personnel, and junior financial analysts.
The goal is to quickly mobilize project-ready personnel who meet the sector's stringent experience requirements.
Payroll management
Outsourcing payroll significantly reduces a bank's administrative burden and compliance risk.
The HR partner or provider takes full responsibility for complex tasks, including accurate calculation and processing of salaries, handling local social insurance contributions, managing relevant taxes and compensation and benefits packages.
They ensure timely, documented payments to all contracted employees. This is crucial for maintaining financial accuracy and adhering to specific labor codes across multiple operating regions.
Further reading: Manpower Outsourcing vs Payroll Outsourcing: Similarities and Differences
HR administration
This covers essential workforce maintenance such as handling the complete lifecycle of the outsourced personnel, including managing employee contracts, ensuring proper registration with relevant government bodies, handling disputes, and overseeing all other day-to-day administrative personnel management tasks.
This guarantees that all full-time, part-time, and temporary staff are managed consistently and compliantly.
IT and customer support
In banks, and other industries, companies will often outsource specialized technical and customer engagement support for scalability.
This includes providing fully managed, scalable IT services ranging from infrastructure monitoring to application support. It also encompasses managing customer experience solutions, such as operating multichannel contact centers that provide efficient technical and other support to the bank's clientele.
This allows the bank to maintain high service quality without relying on in-house resources only.
Further reading: 12+ IT Outsourcing Statistics for Business Decision Makers
Business process outsourcing
Business process outsourcing (BPO) refers to the contracting of an entire, defined business function (or part of it) to a third-party specialist.
For banks, this involves outsourcing high-volume, non-core operations such as loan application processing, complex transaction clearing, data verification, among others.
The BPO model delivers complete operational management, technology, and staff, providing an end-to-end solution focused on efficiency and measurable service quality improvements.
Compliance and Risk Management in Egypt and the GCC
Manpower outsourcing in Egypt and the Gulf Cooperation Council (GCC) is governed by rigorous risk mandates, making regulatory compliance the highest priority.
Banks must adhere to mandatory guidelines for due diligence and the precise structuring of contracts for critical functions, as stipulated by regional regulators. These include the Central Bank of Egypt (CBE), the Saudi Central Bank (SAMA), the Central Bank of the UAE (CBUAE), and other central banks across the GCC.
Banks, financial services companies, and fintech firms must ensure the service provider’s legal jurisdiction and ability to be fully compliant with the relevant central bank's regulatory scope.
Navigating these complex, localized regulatory environments across Egypt, Saudi Arabia, and the UAE necessitates a specialized partner, like Tawzef.
With its deep knowledge of operating and manage teams and employees, adherence to central bank regulations and other banking stipulations, Tawzef acts as the go-to manpower outsourcing partner for banks.
Meet Tawzef, Your Strategic Partner for Banking Manpower
When seeking a reliable manpower outsourcing partner across the GCC and Egypt, banks need an organization that prioritizes regulatory adherence and specialist talent.
Tawzef delivers on these critical needs:
- Operational agility: Tawzef is well-versed in the banking, fintech, and financial services sector, with manpower and HR services, helping businesses scale as needed. This allows banks to support rapid digital transformation, seasonal demands, or new project launches without compromising on quality or regulatory requirements.
- Compliance and governance: We seamlessly integrate our operating model with your bank’s internal governance framework. Backed by our deep knowledge of local labor laws and Central Bank mandates, we guarantee 100% compliance and provide the transparent reporting necessary for mandatory external and internal audits across Egypt and the GCC.
- Vetted banking talent pool: Tawzef provides access to a pre-vetted pipeline of professionals specialized in high-demand banking roles. From financial analysts to compliance officers to specialized fintech support engineers. We guarantee you acquire qualified, project-ready staff.
KPI management: Besides the KPIs we deliver each month on performance, number of resolved tickets, and other metrics, Tawzef’s team implements the KPIs you want, as needed. This ensures your outsourced team is fully-functional, operates as one within your organization, and meets your strict requirements at all times.
Future-Proof Your Banking Workforce with Tawzef
Manpower outsourcing offers the banking sector unparalleled agility, specialized expertise, and operational stability in a regulation-heavy environment.
By partnering with an experienced manpower outsourcing provider, banks, financial services, and fintech companies can navigate complex compliance requirements, access a pre-vetted talent pool, and optimize operational efficiency.
This allows financial institutions to focus on core banking functions, drive digital transformation, and achieve sustainable growth.
Want to learn more about manpower outsourcing for the finance sector? Get in touch with Tawzef.