Outsourcing in Egypt — four models, and how to pick the right one

“Outsourcing” is one of those words that means very different things in different boardrooms. In Egyptian HR specifically, it covers a spectrum from “you handle our payroll” to “your name is on the labour book.” Picking the wrong point on that spectrum is one of the most expensive HR mistakes a growing company can make.

The four common models

Model 1 — Payroll-only

You stay the legal employer. The provider runs the salary calculation, deductions and disbursement. Lowest cost, lowest risk transfer. Fits when you trust your in-house HR but want to offload the operational grind.

Model 2 — Handling Operation (lite outsourcing)

Employees stay on your visa and headcount, but a dedicated representative handles the day-to-day operational and government paperwork load. Insurance filings, labour office submissions, on-site supervision. Fits when you want to keep the relationship with employees but don’t want the queue work.

Model 3 — Full HR outsourcing

Employees move to the provider’s visa and entity. Provider becomes the legal employer; you become the client. Full liability transfer, full compliance handled, single contract. Fits when scaling fast or entering Egypt for the first time.

Model 4 — Recruitment-as-a-service

Different category, often confused. The provider sources, screens and hires for you — but the resulting employee is yours. No ongoing operational handover.

How to pick

The right answer depends on three factors:

• How much liability do you want to transfer? Full outsourcing transfers the most; payroll-only the least.
• How long-term is the team? Short-term project teams favour outsourcing; long-term core teams often want to stay in-house with operational support.
• Are you optimising for headcount metrics? Some companies need employees on their books for PR, contractual or strategic reasons — that rules out full outsourcing.

A 30-minute scoping call usually settles which model fits. If you would like one, drop us a line — we’ll come back with a specific recommendation, not a generic pitch.

Email info@infinitybs-eg.com or call +20 10 2203 5571.