Most people have labelled outsourcing as a dirty word. When the concept was still new, people had put into their minds that getting work done outside the organisation was a trick to reduce labour cost at the expense of customers.
If you would ask an average person what he/she thinks about outsourcing work, you’ll get the same answer. The crazy thing is that it isn’t really all that bad. In fact, it’s an activity that you shouldn’t be afraid of doing.
If you’re tight on the budget but want to stay on top of things, you should embrace outsourcing to help you grow your business rapidly.
Here are four reasons why your understanding about outsourcing might be wrong and what you can do about it to achieve your bottom line.
It’s Less Risky
It’s actually less risky to hire people through outsourcing if you know what to outsource. The trick is to identify low-risk, high-reward functions to outsource. If you have specific tasks at hand, hire candidates that have specialisation on your needs instead of hiring generalist employees.
Yes, you can take advantage of freelance marketplaces such as Upwork and Elance, but wouldn’t it be safer to hire employees from an outsourcing agency? In terms of accountability, those from the agency are more responsible because they are under the employment of a legitimate entity. There’s less to zero risk that your employee will abandon the job and run away with your money.
Simplifies Your Accounting
From an accounting standpoint, hiring an in-house employee presents a lot of work, especially for small business owners. There are IRS rules to be followed, employment taxes to be paid, and benefits to be provided.
With outsourcing, you have more control and can set the rules upfront. Since they are contractors, you will have the ability to increase or decrease their billable hours as you deem fit. Furthermore, you will no longer have to worry about paying taxes and covering benefits because the contractors will pay on these themselves.
Think about the money you will save by avoiding traditional recruitment. You can skip perusing through the newspaper’s classified ads, LinkedIn ads, and paying for head hunter fees.
Get High-Quality Talents at a Lower Cost
The reason jobs are vacant for a long time is because employers struggle to find exceptionally qualified employees at a low cost for those positions. This is especially true if your business is in a major market like Sydney or New York. The cost of high-quality labours in these places can be very expensive.
Whether you outsource offshore or somewhere in your country, having the job done at a lesser cost is better than hiring pricey employees in your own city. Doing such is more budget-friendly without sacrificing quality.
If you’re smart and brave enough, invest your money on offshore employees from a country such as the Philippines. The amount you invest will be like a pocket change once you see cash in the returns.
Staffing Becomes Less Emotional
There are a lot of emotions present when managing in-house staff. When you outsource, you will no longer have to deal with all the drama that usually occurs when making staffing decisions.
There’s a mutual understanding that if you have troubles with your cash flow, you can cut back hours. On the other hand, if things go well, you may need to increase hours again. Contractors are aware of this, making them more understanding than your unhappy in-house employees.
The best thing to do is to capitalise on this opportunity instead of clinging on the idea that outsourcing is a dirty word to be avoided. There are thousands of highly-qualified workers out there. Most of them might be the best fit for your job.
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