Outsourcing versus in-house hiring has remained a hot potato in the corporate world for a long time. The recent COVID-19 pandemic has put this debate in limelight again.
Let’s dig deep into the question- how outsourcing is better than in-house hiring by considering the recent situation and market trends.
Three Benefits that Make Outsourcing Better than In-house Hiring
1. Cost-effectiveness- Global Outsourcing Survey conducted by Deloitte has revealed that 59% of companies believe outsourcing is a cost-cutting tool. Let’s understand this by taking an example of a web or mobile app developer. In western countries, the average hourly rate for a developer is between $100-$150 an hour. Whereas, Asian countries like India, Vietnam, and the Philippines have average developers rates are $25 to $80.
Considering the costs related to hiring, infrastructure, and hourly rates, you can reduce software development cost up to 60% simply by outsourcing your project. It can save your time, effort, and money effectively, and you can concentrate easily on other core activities to grow your business.
2. Mitigation of Risks- This is one of the major benefits of outsourcing. When you hire dedicated offshore developers or outsource your software development project, you immediately mitigate the risks like
- Operational Risks
- Legal Risks
- Technical Risks
- Budget Risks
- Infrastructure Risks
Outsourcing is bound by NDA(Non-Disclosure Agreement) and a legal contract. With various clauses related to payment, deadline, and performance, you can remain assured of the quality and timely completion of projects. What’s more, outsourcing brings better collaboration and sharing between two companies that share the benefits and tasks.
3. Talented Resources- Peter Drucker has rightly said, “Do what you do best and outsource the rest.” When you outsource your project, chances are high that you hire talented resources from all over the world for working on your project. Unlike in-house hiring where you can hire resources from a local area, outsourcing enables you to hire dedicated developers from any part of the world. They can easily reduce the burden on your existing in-house team while increasing the efficiency and productivity of your company. You can also get the advantage of timezone difference by outsourcing your project, which is not possible in in-house hiring.
Barring a few cons like communication issues and less control over your team as compared to your in-house team, outsourcing has certainly an upper hand over in-house hiring. A reliable outsourcing partner can eliminate these cons effectively while offering all the benefits mentioned above for the long term.
There is no exaggeration in mentioning that in this competitive business scenario, outsourcing certainly worth giving a try. All you need to find a robust outsourcing partner who can mitigate the cons associated with outsourcing and reduce your workload by freeing your arms for accomplishing critical tasks. You can opt for SWOT (Strength Weakness Opportunities Threats) analysis for evaluating the need for outsourcing and take your business to a new level.