Understanding the Benefits of Outsourcing
When most people think about outsourced labor, they imagine large call centers in other parts of the world, but the reality of this practice is much more diverse. There are many tasks that can be delegated to firms or individuals that are not direct employees of a business, from customer support to graphics. Keep reading to learn more about outsourced labor and how it could benefit your business.
Talent Pool
When looking to hire an employee, most businesses are constrained by geography and are only able to consider local candidates or those who are willing to relocate. There’s no guarantee that these candidates are qualified to do the work you need done or that the talent pool is large enough to build a team capable of handling all the responsibilities you plan to give them.
Outsourcing provides the option to search for candidates all over the world whose skills can fill the need your business has. This is especially helpful for tasks like logo and packaging design or website development that are important, but may not be services a business needs full-time staff for.
Cost Savings
Hiring a new employee means taking on not only their salary or hourly rate but other costs like training and benefits. Outsourcing labor to contractors can help businesses save money in a number of ways.
Because the outsourced laborers are hired as contractors rather than employees, businesses don’t need to take on the cost of benefits like health insurance or retirement plans. Hiring contractors for specialized and one-time projects can be more cost-effective than maintaining full-time positions in the company and can help decrease the workload of regular employees, meaning they can stay focused on day-to-day operations without the distraction of additional projects. Looking for contractors abroad may also enable businesses to hire someone to perform their tasks at a rate far below the average market rate for similar work in their local area.
Depending on the kind of work a business is outsourcing, budgeting for training the contractors may still be necessary.
Potential Challenges
Outsourcing can be very helpful, but there are pitfalls to be aware of.
If working with contractors outside of your local area, make sure you understand the time difference between your business and where they’re working from. This can help avoid missed communications and deadlines. If contractors are located abroad, be prepared for potential mix-ups due to language barriers and budget extra time on early projects for ironing out any wrinkles that result from miscommunications.
With opportunities to work with professionals outside your local area, possibly at a more affordable price, working with outsourced labor could be the right solution for your business.
