Over the last 10 years, technology has grown significantly. As a result, it’s now extremely easy for both small and large companies to outsource their projects anywhere in the world.
Although outsourcing may not be everyone’s choice, it may be an appropriate solution for your company. Contracting work out to independent workers, either foreign or domestic, may allow you to focus on other areas of your business such as sales, networking, and customer service.
Outsourcing has a positive side and a negative side. Many businesses have expressed their frustration when it comes to outsourcing. The downside may include things like poor communication with freelancers, project delays and quality issues. However outsourcing to the right people and knowing when to outsource is the key to success.
Here are four things that might surprise you about outsourcing and how you can use them to use outsourcing better to grow your business.
1. Outsourcing is actually a less risky way to hire people.
Today there are many freelance websites that can give you access to thousands of talented individuals from around the world. Sort and filter the individuals by skill set, country, hourly rate or feedback. Try working with an individual for a few hours a week first, and then determine if they are a good fit for your company.
2. You can access a pool of higher-quality talent.
Hiring talented employees can be tough. Talented individuals easily find employment in bigger corporations. This is especially the case if you’re located in major cities such as New York, Los Angeles or Toronto. And the cost to hire talented individuals can be extremely high.
For instance, if you’re looking to hire someone with an MBA, you can outsource your work and discover a pool of higher quality talent to choose from. You’ll like be paying them less than you would by hiring someone full time.
3. Outsourcing can help with cash flow.
When you outsource through a virtual marketplace, deciding to cut back on staff is a much easier process than having someone on staff full time. You can hire someone on a project-to- project basis, or even for a limited amount of time per week. If things are slow your freelancer can look for work elsewhere. It’s something that independent contractors already understand. If things pick up, you can easily increase a freelancer’s hours.
4. Outsourcing simplifies your accounting.
From an accounting standpoint, hiring a full-time employee in Canada or the United States can be challenging for small-business owners. Keeping up with CRA or IRS rules and regulations, paying employment taxes, calculating vacation pay and employee benefits takes time and attention to detail.
You can claim your outsourcing cost of as expense when you file your annual tax returns. Freelancers are responsible for managing and paying their own taxes, which makes working with them easier on your accounting. You may also save the money and time devoted traditional recruiting and human resources activity.
It may take a couple of hires to effectively become great at outsourcing and recognizing talent. Once you recognize that talent, establish a good relationship and reap the benefits of outsourcing.