Businesses basically focus upon perfection, efficiency, profit and proper growth. Apparently they are concerned about maximum profit and ideal growth which is possible when the company is getting lot of good business and high paid customers. Sometimes, it becomes a headache for the companies to get the stuff done and meet deadlines to extra work load; this is the time when they seek for more employees and professional workers who know their stuff. However, businesses find it difficult to rely upon hiring new candidates as getting the best employee who can perform best in every situation and can handle amount of work is not that easy! This is the time when companies need to outsource to get the quality work done from experts.
Every economically developed country outsources their work to some extent for a greater profit margin in every field. In USA, an average skilled developer when hired cost $80,000 a year while hiring from Pakistan, Israel, Philippines or India will cost $24,000 a year.
What is Outsourcing?
Simple definition of Outsourcing is: when a business decides for the certain function to be done by someone else not by native team and they hire worker from different countries who can get the stuff done in lower amount and lesser time than the person of our in-house team.
When to Outsource the Work?
This can’t be answered with just yes or no as it mainly depends upon the situation, market niche, industry requirements as well as the amount of work. Simple philosophy is, if you have found a great team or experts of particular niche who charge you less than your in-house employees, go for OUTSOURCING: it will leverage work efficiency, increase perfection along with profit boost, which will ultimately effect your business reputation and get you more solid leads.
Pros and Cons of Outsourcing
There are several reasons of outsourcing in terms of pros and cons.
There are a number of ultimate advantages of outsourcing, some are as follows:
- Low Cost: you will get the work on time that will comparatively charge you less cost than your in-house employees.
- Quality Work: you will get the quality of work from experts of that field, as they want to maintain their reputation too.
- Lesser Time: your work will be done in lesser time.
- Stress: Work load will be properly divided that will save you from deadlines hassles and you can always take up new projects.
- Efficiency: It will make your work more efficient
Cons always exist with pros some are mentioned below:
- Hidden Cost: if you forget to mention any services and singed the contract, they will charge you extra money and this may leads to disadvantage or loses of the expected advantage.
- Risk: you will be in risk, if that company stop responding or couldn’t work for any reason, you may get into the big problem
- Dependent: your company will be dependent on another company progress and performance
Since every business has its own risks. Although businesses can utilize outsourcing for the business growth, maximum profit and more perfection, let me know your thoughts in the comments.