Wednesday, March 9, 2011
Can Slow Growth Boost Outsourcing?
It is no secret that more and more companies are moving their projects outside of the company walls by using outsourcing and freelance services to complete the projects. This move has made it possible for companies the world over to remain profitable in the face of economic downturns. This speaks directly to the benefits to be had when outsourcing projects to freelance professionals from all over the world. So many people are skilled in certain areas that they hardly ever use, mostly because they took a job in the world that was outside of their qualifications in order to survive in the failing economy that is plaguing the world. This is not uncommon. Those with degrees in electronics and their inner-workings are especially prone to this because of the cut throat market that reigns. Upon graduating, these people will most often take a job that has little to do with the education they have received. This is a huge waste of resources as many companies will not hire such persons because they have little or no skills in the real world. Barring a complete and total makeover of the way that companies hire professionals, the only chance these people have is to take on freelance jobs that have been outsourced by a company in need of such services. This is becoming common place in this world as freelancing takes a hold and makes it mark on the professional world. Outsourcing is rapidly becoming the best way for companies to save money in light of the downturn that the economy has taken. Little can be gained by these companies when they attempt to keep the projects in house. Moreover, they stand to lose substantial amounts of money by attempting to hire and train someone for the project when you take into consideration all the benefits and salary that must be paid to persons that work inside the company. Outsourcing does away with the need for such benefits by hiring professionals from outside the company walls to make certain that the project is completed in a timely and efficient manner without the large costs involved in training someone for the project. The beauty of outsourcing lies in the simplicity of it all. The freelance professionals that are available for outsourcing the projects are already trained in the inner-workings of the project. This saves the company not only time but money in the long run. The fact remains that hiring a professional for full time work is not productive in most cases when the project is a one time thing that may lead to the possibility of more work but does not guarantee as such. This means that a company may only benefit from a person’s knowledge once and never again. Then if they have already hired such a person then they are required to put into place a full time salary and benefits package that will cost them more than the project is worth in the end. So in essence the company has wasted the valuable resources they have when it comes to a one shot project that is not guaranteed to bring in any long term profits for the company. That is where the outsourcing of projects comes into play. Instead of hiring a full time employee with long term pay and benefits, the company takes part in outsourcing by opening the bidding floor to qualified freelance professionals who will bid for a one time flat fee for the project. Under the outsourcing system, freelance professionals bid and are awarded the project based on their individual merits and the price that they have bid for the project. If they have the skills required then they simply complete the project in exchange for the pay that is agreed upon. That is the only connection that the freelance professional that is hired for outsourcing has to the company and can make no claims to the company for more than the agreed upon pay. This is all done in the comfort of outside locations. This means that the person does not have an office inside the company and is not subject to any benefits that the other employees of the company enjoy. This in itself has saved the company a lot of money. When you take all the factors into consideration you see that outsourcing is the way to go for a lot of things. Many companies are finding that they can run with a surprisingly low number of employees on their payroll as compared to previous years when they use outsourcing as their main method of completing projects especially when it comes to those things that require special training and knowledge that is not taught in the base education of the employees that they regularly hire. There is the possibility that many companies will find improved profit margins in relation to the former bottom lines that they once thought to be too low. In the essence of good business decisions, more and more companies are outsourcing their projects in an effort to streamline their business with an eye to the future. There is much to be gained by outsourcing the projects that a company needs completed. All over the globe there are people who are highly skilled but not using those skills in their normal jobs. This is a tragedy to many who know that these professionals can be tapped to provide valuable services to the companies all over the world that are spending millions of dollars more than they should be to get the work done that is so vital to the company. Most of the knowledge that can be found in the freelance professionals of the world that take part in outsourcing is mandatory for the companies of today. So much is relied upon by these companies and it is of the utmost importance that they work to maintain a higher profit margin in an effort to boost the world out of the recession that it currently is in to provide the best work possible for their customers. In the end if there are no customers than there is no business and they need to find cheaper ways in which to maintain an airtight business without harming that which is important to them. Outsourcing is the only solution to the problem as more and more companies are struggling and laying off workers in an effort to remain profitable. They will notice a 50% decrease in costs when outsourcing takes place on the projects that can be completed by freelance professionals. If the economy continues on the downward spiral than a great loss of jobs is not far off in the horizon. This speaks directly to the need for outsourcing of the projects that companies need to the freelance professionals of the world who can get the job done at a fraction of the cost and normally within a shorter amount of time than originally conceived. To maintain this type of business most companies will benefit in a short period of time when they outsource the projects to those who do not operate in house. Furthering the cause of outsourcing is of vital importance to all those who need the work completed in a timely manner and with the professional quality that so many can bring to the table.