Which Is The Best Outsourcing Strategy For You?

Which Is The Best Outsourcing Strategy For You?

There are several ways to outsource. The employer should choose the best method depending on the project size, budget and the flexibility he/she requires. Choosing the optimal method will maximize the cost-benefit ratio.

Outsource Companies

The advantage of outsource companies is in their talent pool. Even if your project is small and only required a couple of people, if the team encounters a technical challenge, they can utilize the expertise of others within the same company. In addition, the company would usually assign a team leader to oversea the project, which takes away the hassle of project management.

The project specifications are usually agreed before the project begins, which will be difficult to change. If the employer wants to make a change half way through the project, the fees will have to be re-negotiated in response to every small change, which will lead to significant delays and cost increases.

This method is ideal for large projects that can’t be handled by freelancers and need to be done in a time frame that is too short for hiring and training dedicated offshore teams.

Dedicated Offshore Employees

Hiring dedicated offshore employees means your labour cost is the same as the local outsource companies. Since you are no longer paying for outsource companies to handle your projects, you get to save the extra cost they mark up to provide their safety margin and profit. The saving could be significant. However, you will be taking on extra responsibilities such as making sure the right candidates are hired, workers are well trained and motivated and managing the productivity of the team. It is a lot of extra work but if you do it right, you will end up with a dedicated team who will be more productive and more passionate about your project than what you will get from any outsource firms. This is the ideal method for any employer looking to build a long-term work force.


Hiring freelancers is usually the ideal method for small short-term projects. Unlike dedicated offshore employees, freelancers will charge more to protect themselves against irregular work flow. It is like hiring an outsourcing company on a miniature scale but without some of the benefits like talent pool and project management. You will still need to be hands on to ensure the freelancer will deliver on time. Any changes you want to make will lead to re-negotiation, delays and higher costs. Since there is no talent pool, you must always make sure the freelancer possesses all the necessary skills to deliver your project. If they encounter any technical challenges they can’t solve, you will likely incur significant delays or worse you will have to look for another freelancer to take over the project, which will be messy and costly. Therefore this is the ideal method only for small and simple projects and the employer does not require a long-term work force.

Source: EzineArticles
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