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The Pros and Cons of In-house Hiring Versus Outsourcing


Outsourcing has become a popular solution for various business entities mainly on account of its many advantages. Apart from the time and cost savings that outsourcing ensures, the most attractive benefit is that you get to work with top talent in the industry. Organizations considering the outsourcing model have various concerns including the safety of data entrusted, and the quality of the output. They find it difficult to choose between in-house hiring and outsourcing.
The Pros and Cons of In-house Hiring Versus Outsourcing
The three vital factors to consider when planning for in-house hiring or outsourcing are cost, expertise and flexibility. It is a major decision, whether to build a full-time resilient team of in-house employees or hire freelancers who can perform all these tasks at a much lower cost. Outsourcing can be done to a reputable back office outsourcing company for the best results. When it is challenging to build a full-fledged pay scale for a short-term project, the better option will be to outsource the work. The decision to outsource or to hire an in-house team can make a huge impact on the cost and quality of the output.

The Pros of Hiring In-house

  • By directly engaging into the project, an in-house employee can save the time you need to spend on describing your business and team. Professionals outside might not have the same in-depth understanding of your team and your customers.
  • In-house workers can learn things quickly with minimal conversation compared to a remote worker.
  • Face-to-face conversations can also drive excellent progress in work. In-person discussions have proven useful in generating new business ideas that may lead to bigger innovation.
  • Employees with specialized skills can effectively find solutions to any technical or other problems.

The Cons of Hiring In-House

  • Hiring an under-skilled employee will end-up costing more in the long run for a company.
  • Conversations with under performers and managing them may be a difficult task for managers.
  • If a full-time employee is not utilized effectively and if the expenses associated with them are fixed, it could prove to be a disaster.
  • It could be expensive for an employer to maintain health insurance and other savings for their permanent employees.

The Pros of Outsourcing

In-person interaction isn’t necessarily required for some tasks, like web design, content creation or paid search media. Outsourcing is ideal for short-term projects, freelancers are also cheaper to hire due to the lack of expected benefits and flat rates. When outsourcing, the hiring pool becomes global and finding talented people across various time zones enables a company to maintain a 24/7 presence. All expenses related to performing a job will be borne by the freelancer, so this is another advantage for companies.

The Cons of Outsourcing

A freelancer may finish a task based on prior commitments using a first come, first served system and this could delay the work. When managing a number of clients and following all the instructions of various clients, it may not be possible for a freelancer to finish the work in the allotted time. If you are outsourcing to a different country, the difference in time zones may lead to a communication gap which could in turn affect the quality of the work. Another risk in outsourcing is exposing a company’s intellectual property to an untrustworthy source. It is very important to fully investigate about the consultants you choose. Maintaining consistent communication with potential consultants is also essential. For a start-up company, beware of fake profiles and consider various factors before outsourcing your work. A freelancer might be working for you, but actually they analyze, study, and discuss your work with some other consultants before finishing that for you, this may actually delay your work.

The main advantage of hiring in-house employees is that you can save the time you have to spend describing the projects to some providers of outsourced solutions. The most important criteria in any type of work should be the cost, expertise, and flexibility. Consider the above-mentioned pros and cons in in-house hiring and outsourcing, and choose a model that best aligns with your type of business. Whatever option you choose, ensure that there is no compromise whatsoever in the quality of work and timely completion of work.

About MOS Team

MOS Team

Managed Outsource Solutions (MOS) is a leading BPO company committed to providing business process outsourcing solutions for a wide range of industries such as Medical, Legal, Information Technology and Online Media.