Employee as a service (EaaS) is a type of remote work model that benefits businesses by letting them manage periods of high and low demands with equal efficiency and complete peace of mind. Aided by seamless access to an on-demand workforce made up of remote employees, businesses can take up challenging projects, and upsize or downsize teams.
An important thing to note here is that employee as a service (EaaS) has been made possible by cloud computing. Employers now have direct access to the global talent pool situated in various resource-rich countries like India. This way, they can employ the services of ‘remote employees’, without having to deal with liabilities like medical, HR, payroll, insurance, benefits, etc.
Mapping the Rise of Employee As A Service (EaaS) Model
The easiest way to understand the evolution of the employee as a service (EaaS) model is by drawing similarities with software as a Service (SaaS), a term we are more familiar with. Wikipedia defines SaaS as “a delivery model in which software is licensed on a subscription basis and is centrally hosted.”
Like employee as a service (EaaS), SaaS is also a direct outcome of cloud computing. Wikipedia further describes it as “the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user… typically uses a pay-as-you-go model, which can help in reducing capital expenses.”
Its origin can be traced back to the 1960s when computers were too expensive for small or medium-sized enterprises. These companies would rely on computers connected through a network in the pre-internet age referred to as the “time-sharing system”. Over time, pioneering companies like IBM and Salesforce became major players in the cloud service delivery industry paving the path for the rise of the SaaS model.
Anything as a service (XaaS)
It is an online method for anything (business product or service delivery) as a service (XaaS), financed using a pay-as-you-go pricing model, offering flexibility to scale up or down as per market demands, and managed by a service provider.
As an umbrella term, it accommodates the inclusion of newer varieties of innovative service delivery models for convenient work methods, like IaaS, IoTaaS, DaaS, MSaaS, MBaaS, PaaS, EaaS, RaaS, and so on. XaaS has its origins in the dot com boom and is built on the principle of using the internet as an off-site data storage platform and connecting distant service providers with end users and stakeholders.
What does EaaS have for the Employees?
The goal of employee as a service (EaaS) is to convert a remote employee’s services into products accessible via the cloud staffing model.
Because of the cloud staffing model – the bedrock of EaaS – employees can work from the comfort of their homes, cities, or countries, and still function as core members of the client’s in-house team.
This comes especially handy for employees residing in countries with lower currency values than their employers, aiding them to achieve higher purchasing power on their salaries and enhancing their living standards. By pitching themselves as service providers, remote employees remove the need for middle management, helping employers make more savings. The money saved by companies opting for the employee as a service (EaaS) model can go into core areas of business operations like sales and marketing.
Discussing Literature on Redefining Work Dynamics
EaaS symbolizes a shift in perspective for both employers and employees. It creates a win-win situation for either party, especially in the backdrop of an evolving gig economy post the ‘Great Resignation’ era.
A common question is “Will technology kill jobs and exacerbate inequality, or usher in a utopia of more meaningful work and healthier societies?”
The same question was asked by the World Economic Forum during the COVID pandemic in one of its articles based on a study by PricewaterhouseCoopers International Limited.
It illustrated a broader hypothesis of 4 types of futures with varying influences of the roles of technology, finance, corporations, regulatory bodies, government, and employees, with the last being its focal point. It passionately debated the relevance of full-time in-house employment as we know it now in all 4 of those instances. The outcome?
Resonating with another study by KPMG International Limited for investigating similar purposes, the outcome agrees to a revolutionizing force behind emergent work structures, at the heart of which lies modernizing talent management strategies. EaaS is an extension of that.
“New workforce dynamics such as skills on demand, alternative employment models, multigenerational collaboration, and integrating human and intelligent automation are reinventing the workplace. The ability to be agile is key to future performance and competitiveness.”
Benefits of Managed Employee as a Service (MEaaS) Providers like Remote Resource™
It’s not our intention to overwhelm you by introducing new concepts at every level. An MEaaS is simply an EaaS whose work is managed by a service provider like a company or agency. This is what we do for you.
In the EaaS model, a remote employee directly sells their services to you, sometimes with no regard for accountability or the desire for a long-term relationship. MEaaS providers like Remote Resource TM, on the other hand, empower your business by providing and managing remote employees for your outsourced projects. It’s a zero-hassle relationship between you and your MEaaS provider where you get to enjoy complete peace of mind without compromising on project goals.
We at Remote Resource™ believe in the power of long-term relationships to foster sustainable business. Our mantra is to grow with our clients by delivering the best remote employees in any given domain.
If you would like to speak directly to our experts, book a free consultation with Remote Resource™.
