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As an offshoot of Adam Smith’s ‘competitive advantage’ theory in the 1700’s, outsourcing has gained popularity and has been a great opportunity for companies and workers alike through the years. Before knowing the different outsourcing benefits, let me define outsourcing first. This business tactic is simply the process of getting resources or human resources outside the company or outside the country of location of a certain company.
Different companies have different reasons why they turn to outsourcing. These days most internet marketing companies and manufacturing companies use it as a cost-cutting strategy. Manufacturing companies, for one, are always in search for countries where the raw materials they need for their business are priced cheaply. This allows them to get the much profit that they need without stretching their budget. Web publishing or internet marketing companies, on the other hand, tend to look for countries where they could get employees who are qualified and are capable to deliver excellent work at a much cheaper wage.
Cheaper wage is one of the outsourcing benefits for the employer company. For example, an
internet marketing company based in New York hires writers from the Philippines instead of the locals there. Surely, the company could save as much money because wage in the Philippines costs much less than the minimum wage in America. More so, Filipinos are skilled in English and are highly trainable. Hiring a New York native, then, would not make much difference from hiring an offshore writer. Well, the only difference could be your distance from the latter. That would be a huge disadvantage only if personal contact is a must for the job.
One-sided it may seem, but the helpful effects of outsourcing also come upon the individuals who get hired for the outsourced jobs like those offering SEO services. There are a lot of people in different countries who are qualified and skilled in their own field who are unemployed. It’s not because they don’t care to have a job. One primary reason is there is a lack of jobs for them. Here is where outsourcing becomes an ideal source of income for people living in places with slumped employment rate more than just being a business tactic.
Going back to the manufacturing companies, they too outsource their jobs in the countries that supply their raw materials. Let us consider China. Basically, it is famous for its cheap raw materials and its booming population. Companies from bigger countries create jobs there by putting up a China-based branch. Along with the construction of their buildings, they will hire Chinese workers for its establishment and employees for the company operation afterwards. Employment rate then is expected to upsurge for the Chinese laborers.
If you are a company owner who thinks you have some cost-cutting to do, you can now decide whether to take advantage of the outsourcing benefits or not by watching outsourcing training DVDs today. However, it would still be wiser to study which of your job positions are suitable for outsourcing. Surely, you will be spending money on the training and wages of your offshore employees. It is best for you to research and study their profile first before hiring them. You must also make sure that you will get above average work or service wherever you plan to sow your outsourcing investment. Bear in mind, more than reaping savings and earnings for your business, you are also sharing job opportunities in places where people can hardly make both ends meet with their current jobs or with the lack of jobs. Thus, you are climbing the ladder of the corporate social marketing activities well.