Wednesday 16 July 2014

Outsourcing is not the Enemy

Outsourcing is a confusing issue for business owners. One complaint is that it costs money to outsource what could have been done in-house. That is absolutely true. But the problem with that truth is that it hides the true intent of outsourcing. To be honest, outsourcing is not the enemy it is made out to be. Fact is outsourcing some work is actually good for business in many ways. Yet another fact to consider is that outsourcing a project may be very cost effective. It can also save you time hiring a specialist for one task. But let me highlight a few pros to choosing to outsource work.

One consideration is outsourcing means you will be able to save money by not hiring an employee to fill a role. The money that comes to hiring, training, giving benefits, plus adding bonuses can be spared and put to good use. Often small business owners will go hire an employee who specializes in a particular task in hopes of getting the person in question to add value to the company. The employee will now cost the regular salary plus the cost of any and all benefits, which include but are not limited to sick days. Outsourcing eliminates the need for a permanent hire and or benefits associated with the permanent hire. All you end up paying is the one fee agreed upon when you enter into a contract; no need for benefits.

The savings in a regular salary plus benefits can have huge implications on the bottom-line as well. Consider that a thirty thousand dollar a year employee can cost the company upwards of 90,000 per year. When you outsource a project you pay a onetime fee to the contractor you hire. You can have other jobs go through the same freelancer and do not have to give them any type of benefits. Best of all; you are not paying them when there is no work to do. When the contract is over it over it is the end of the story.

The workmanship to outsourced work can also be better than a hired employee. These people often see the work you are providing them on a regular basis. They can offer detailed addition to your project based on their experience. What you may get from a freelancer when you outsource is the perfected craft that may have taken years or months.

When you hear about outsourcing give it some serious consideration. There are companies and individuals that could be better served by doing jobs for you. Outsourcing not only helps you save, but offers a variety of ways one can go about handling projects. I would advise a company considering outsourcing to do their research and give it some serious thought. You could be creating a lasting relationship with a really good resource.

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