For example, in the aggregator model the risk of human error is exponential depending on how many different companies are in their network. Let's say the lead company covers the UK, US, Argentina and Australia, and they outsource payroll for another 10 countries to a partner. But that partner doesn't cover two of those countries themselves – for the sake of argument, we'll say Ghana and Kazakhstan - so they outsource each to a local partner. That leaves a total of four companies running payroll under this agreement, and three levels of supply chain where the risk of human error becomes magnified. If there is an issue in Ghana, by the time that is communicated up the supply chain, all hell could have broken loose!
By contrast, if you're working with a partner that has its own wholly-owned network of local offices, operating as one company and with clear communication lines, the risk of that Ghana issue blowing out of proportion is minimised. By speaking with their colleagues, the issue can be addressed – and hopefully before the end client's employees even realise there's been a risk to their payroll.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
