Advantages of Outsourcing

April, 30, 2015 by Linda Singer author workhoppers


Did you know that outsourcing was not a business strategy until 1989? Outsourcing means delegating a specific project or task to an outside consultant or company. It has become a very popular strategy for today’s workforce.

Not that long ago, companies wouldn’t outsource a critical or fundamental task. They also wouldn’t outsource core competencies or anything involving the customer. Instead, managers contracted service companies for human resources, accounting, data procession, or maintenance.

The current stage in the evolution of outsourcing has changed. Today, the focus is on developing strategic partnerships. Companies now base their decision to outsource on who can deliver the most effective results. It is now easier than ever to hire external consultants or experts to help you get the job done. You can now connect to several talent marketplaces to find the specific skills your business needs.


Advantages of Outsourcing

Firstly, outsourcing can reduce costs by reducing the number of permanent employees. But there are also other benefits to this strategic move:

Increases Flexibility

Outsourcing can give companies more flexibility in their recruiting policy. Moreover, many industries have fluctuating demands, and meeting these demands can be difficult. Failing to meet the demand may be very costly for companies. By hiring contractors and consultants, you can cope with seasonal and cyclical demands. You can also keep labour costs low, predictable, and efficient.

Reduces Requirements for Training

Small or medium companies can find it difficult to train and integrate new hires. Training employees can be time-consuming and risky! What if your new hire doesn’t work out? Besides, there is a learning curve for the new employee. So the employer will not be at full potential until they are fully integrated. By hiring contractors, the company can save time and effort on training and see expedited returns on investment. Freelance contractors come in and hit the ground running.

Gets you the best expert

Lastly, hiring a contractor is a great strategy for a company that needs very specific knowledge for a specific project. Your company might not have the internal resources or need to keep the best expert on a full-time basis. Furthermore, hiring freelancers allows you to have the best expertise and experience and tap into best practices. Another bonus is that these skills can be transferred to your permanent staff!

Accelerates your project

In conclusion, with a designated team or freelancer, you can get the job done faster! You can reduce the time-to-market sometimes by a significant amount of time.

As you can see, there are so many advantages to outsourcing. It’s no wonder that companies are outsourcing to talented freelancers more often.

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