Why It Is (Sometimes) Better for Your Company to Outsource

Why It Is (Sometimes) Better for Your Company to Outsource

When Donald Trump campaigned for the presidency, one of the key messages of his run was to bring back jobs to the United States. These jobs are believed to be outsourced to many Asian countries such as Vietnam, the Philippines, India, and even some parts of Latin America. It is a strategy used by many businesses to reduce operational costs and gain access to worldwide capabilities and skills.

Domestically, you can liken outsourcing to waste industry staffing, where a waste management company used outside resources to perform specific activities that would have otherwise been delegated to an internal staff. Under this setup, the company hires a staffing or recruitment agency to provide staff and crew for its various services and duties. These workers are often not treated as employees but rather as partners in the business operations.

Lower Operational Costs

Reducing operations expenses is the biggest driving factor as to why companies choose to outsource rather than hire internal employees. When companies hire someone from third-world countries, the wages are extremely lower than the salaries of their people in the U.S. or in other first-world nations. They are also not obliged to provide benefits and insurance (although some staffing agencies require these, too). Even if the outsourcing happens domestically, the expenses are lower because the company doesn’t need extra office space for the outsourced employees.

Access Worldwide Skills

worldwide access

There are many talented and skilled workers outside the country. They just don’t have the opportunity to apply to your company in person. Outsourced and offshore workers are just as talented as your internal staff. If you allow them to prove themselves, they will wow you with their dedication. You can tap into this potentially skillful pool of workers by going on LinkedIn and other job-search platforms and advertising your job openings.

Divide and Delegate Operations

Outsourcing some of the tasks and duties in your company also allows you to focus all your energy on the core operations of the organization. Instead of having your internal staff multitask, they can focus on their actual work while you outsource some parts of the job. This is often referred to as shared risk, where the staffing agency shoulders some of the responsibilities of your organization.

Streamline Time-sensitive Tasks

If you are outsourcing jobs to people from the other side of the world, you can be assured that the job is being done even while you’re sleeping or having dinner with your family. Since the time zone is different, your company seems to be operating almost 24 hours every day. It allows you to accept more projects and embrace more responsibilities because you have staff that can handle the job no matter the time of day.

Outsourcing jobs will only be beneficial to your company if you hire the right staffing agency and if you communicate well with your offshore workers. It commands a great commitment and dedication from your end to reach out to your workers and maintain a good relationship with them. Their non-presence in their office does not mean that you should not make an effort for them.