An HR operating model defines the structure, roles, accountabilities and service delivery mechanisms of an organization's HR function. It determines whether HR operates as a strategic business partner, a shared services center, a center of excellence or an outsourced model. In Saudi Arabia, the HR operating model must handle the unique complexity of local labor law compliance, mandatory government portals, Saudization management and a dual workforce. Many companies adopt a hybrid model — outsourcing compliance and administrative HR to providers like Inclusive Solutions while keeping strategic HR and talent functions in-house.