Offshoring HR Administration? the Reality for Luxembourg Companies | In the News

An increasing number of major companies in Luxembourg, especially in the banking sector, are looking to offshore management of human resources, the so-called HR back office. The decision to move these activities abroad is usually initiated by headquarters and often impacts several offices in different countries, which are tasked with reorganising their activities so HR administration processes can be merged, optimised and carried out from a single hub. While there are many good reasons to make this change, it presents significant challenges and complexity in the Luxembourg context.

In an article published in September 2016, Rodrigo Amaral interviewed Sarah Burnett, vice-president for research at Everest Group, about ‘nearshoring’ in central and eastern Europe. She said:

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