03 August 2017 in The Call Takers Blog

Is Outsourcing Good or Bad for The Economy?

Is Outsourcing good or bad for the economy?

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7 Answers

Mark Edward, Business Developer at Staff India (2017-present)

Answered Apr 3

I would have to disagree with you. Outsourcing in fact not at all bad. It is significantly beneficial for small and medium sized enterprises. Look at the facts first:

  • In this competitive business era small as well medium enterprises suffering to ensure proper growth of the business as sever sectors already has giant companies.
  • Not only that most sectors have too much competition going on lately.
  • Industries like IT, Telecommunication, Textile are already matured. There are not a lot of option available for SMEs in the market to grab a specific niche. Giants company like P&G, Apple, Samsung constantly gaining loyal customers as a result opportunities for SMEs reducing day by day.

Now let’s see what can outsourcing provide for SMEs therefore they can gain competitive advantage over giants. Benefits that outsourcing will give to small and medium sized businesses are:

1. Less Office Space

With virtual employees you don't need to worry about providing office space, because your virtual employee works from out office remotely for you. Your outsourcing agency will provide the desk space and facilities. So you need not move to bigger offices as your business grows, keeping your fixed costs low.

2. Less infrastructure

With new employees you not only have to ensure you have a desk space for them, but also provide the infrastructure for them to work with. A computer, stationary, work tools etc. With virtual employees, your outsourcing agency will provide everything so there is no cost on you.

3. No National Insurance

With your virtual employees, they are legally employees of the outsourcing agency based offshore. You have no National Insurance of Tax contributions to make with their salary. Great!

4. No employee Tax

In countries like UK, companies need to pay an employee tax contribution. This can lead to thousands in costs as a company grows. With virtual employees, there are no tax implications as such, as the employees are legally hired by the outsourcing agency.

5. Less Salary

Offshore Virtual employees generally require a small salary which is typically 70% less than your local employee. Why do you think the large corporations have started this trend of hiring employees offshore? This doesn't mean to say your virtual employee is underpaid, the salary requirements are the market rates within their country, so all is fair.

These are few benefits businesses can obtain from outsourcing among several others.

As I am involved with an outsourcing/offshore firm let me suggest you to take a look at the pricing policies of our company. In Staff India we provide services that satisfy our clients.

Feel free to contact if you have further question: This email address is being protected from spambots. You need JavaScript enabled to view it.

Company Website: WWW.STAFF-INDIA.COM



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