Why Do You Want To Hire Local When Outsourcing Greatly Reduces Your HR Costs?Employment | January 1, 2010 at 12:05 am
Outsourcing employment comes with a lot of advantages. I agree that not every job can be outsourced, but by even outsourcing a few jobs you do save up on a lot of expenses. Now, in the present recession recovery period you could always consider outsourcing some jobs. Quality compromise is a myth when it comes to outsourced employment. These days a lot of young and old talented people are opting for outsourced employment as according to their standards the pay offered by the outsourcing western countries is very attractive. Here are some advantages that you might want to consider before outsourcing your company work:
Good Quality Leading To Increased Profits
As I said earlier, quality compromise is a myth that many US employers have about outsourced employment. Many of these foreign employees are very talented and are at par or higher when it comes to quality performance. Many Indians are known for their technical mettle in the US and have been honored by the government for their appreciable work. Even other third world people, like the Chinese, are professionally committed very much. As you know, quality work brings you good profits.
Opportunity to Invest Better In Core Activities
By outsourcing you save up on costs in a number of ways. You save up on employee wages, social security, insurance, medical care etc. You also save up quite a bit on the office equipment and infrastructure costs you’d have had to incur for onsite employees. So how do you intend to spend this saved up money? As the CEO, you could very well pocket it or you could spend on improving core activities. I’d opt for the latter because that is a step towards improving my business rather than my personal life. The results of an improved business are always worthy.
Better Risk Management
Outsourced employment usually tends to be project-oriented rather than company-oriented. So, if the product brings profits, you share it with the outsourced employees, but if it doesn’t sell well, you can always sack the employees without many hassles. Permanent in-house employment is different. Even if a product does not do well, the employees you cannot slash the salaries of the employees.
Outsourced Employment Requires a Simpler Office Structure
If you are startup company, you need to organize your office into logical and physical systems which may be time taking. You cannot start off your business immediately. You could outsource the business while you set up office. This will save you time.
Apart from the advantages mentioned, outsourcing enables you to select talent boundlessly. Otherwise you’d have to compromise with only your in-house staff which may or may not be all that good. A lot of trained and specialized talent is available in foreign countries for outsourced employment. Outsourcing helps in commodification for smaller companies which outsource their employment for business growth. Outsourcing makes the employees responsible for the product they deliver. The company can ask the outsourced employees to compensate for inferior quality work or delayed deadlines.