Outsourcing v/s Hiring In-House:
Pros and Cons
Outsourcing:
Outsourcing is a business practice used by firm of hiring party outside a company to perform services and create goods that were traditionally performed in-house.
Pros:
Skilled and Specialized people
People of outsourcing are experts in their fields they have specialized knowledge, maintain reputable certification and experience behind them. doesn’t matter how big your team is if there don’t have what is take to get the job done or you are looking a work of different knowledge than outsourcing is the best option you have
Low cost
If you are looking forward to cut your expense, than outsourcing is a great option. They are hired only when need to or for professional service for short period, it save the expenses which is used for training employees for short term needs.
Save time
Outsourcing have skilled and experienced person in the team who know about their jobs. Those guys know there job and also the best way to do it in minimum time possible. They have better communication with each other, which in turn saves the time of discussion.
Are delicate toward you
Outsourcing contractors earn living from the working for their clients. They are dedicated to provide you the best services possible without any problems.
Lower the burden on staff
As, outsourcing is about taking service from outside the organization. So, it reduces the stress and workload from your staff which allows the staff to focus time and energy on their primary tasks. This results in better and faster compilation of work
Cons
Lack of control
By hiring a contractor or freelancer instead of employee, you lose some control when you perform outsourcing. Although you can provide directions in regards to what exactly you need to accomplish.
Communication issues
Communication issues doesn’t always come into play, but it is one of the biggest potential drawback of outsourcing. Many a time, we hire guys outside the country or someone from different time zones which creates communication issues due to the difference in the time zone. The preferred ways of communication are phone, email and messages.
Might discourage staff
As outsourcing guys have expertise and experience in there fields of work which could extinguish the ambition of the employees who wanted to develop their skills. So before hiring someone from outsourcing, you have to see that it do not jeopardize your employees and maintain high level of productivity and a positive work culture.
Potential risk of security
There could be a breach of sensitive information regarding your company through the hand of contractor. Before hiring anyone outside your organization, all security related concerns should be discussed before working for the first time.
Shopping
Finding the right person or organization can be a tedious process. You have to spend a lot of time calling around, reading online reviews, and taking suggestion for your network. It requires a lot of efforts and time to find the right person for the job.
Hiring in-house:
In-house refers to conducting any activity or operation within a company by its employees, rather than relying on outsourcing.
PROS
Long term service
Employees work on salary bases, they receive salaries on regular bases, they have time and room to grow which make in house less of a fight risk which this employees more vested for long term voice to your company.
Better engagement
You can have face to face conversations which offers more engagement between you and your employees on the same project. You can have in-person discussions which can sometime lead to bigger ideas.
Better supervision
You can keep better track of the progress made and all the technical solutions may get resolved faster. In-house talents can direct all the attention to a problem that must be fixed quickly.
Save time
Freelancers have prior commitments while outsourcing work on first come first serve system which could take some time. Whereas your in-house talents start new tasks or new projects on your command.
New level
In-house employees are salary based and are loyal to your company. Your employees grow with your company, they develop new skills which helps your company to grow and differentiate it from the firm in competition. And with a litte more efforts you can build and start a team which will help in your business to stand out from the rest.
Cons
Might get expensive
All the employees are on salary bases they receive salary on regular bases. And the top employees get special benefit like medical and dental insurance, which add to a higher cost where as freelancers have a flat rate.
And finding new employees is a costly process and is time consuming, it takes a lot of time and efforts to train and guide them about their jobs. Whereas freelancers are experience and have a better understanding about their work.
Finding proper talent
Finding proper quality talent for your company can be really tough, especially if you are located in some small town or cities, as most of them have already been employed or have moved to cities for better exposure.
