Outsourcing solutions have expanded beyond manufacturing jobs to include customer support, office, engineering, and information technology services. Companies outsource for cheap labor, English skills, and freelancers for extra projects. Independent contractors work from home and save on overhead costs. BPO solutions include administration, accounting, human resources, web design, and copywriting. Some companies set up business divisions in offshore countries for cheaper labor costs. Training needs can also be outsourced.
Several decades ago, outsourcing solutions mostly consisted of manufacturing jobs outsourced from Europe and the US to offshore countries like China and India. Today, India and China still lead the way when businesses outsource offshore, but a much wider range of jobs and work activities are being outsourced. Customer support, office and even engineering and information technology services provide outsourcing solutions both offshore and on land.
Why outsource? Offshore outsourcing is especially favored by companies looking for cheap labour. Land-based outsourcing solutions are often chosen by companies that want to keep jobs in their home countries and/or expect English skills of the highest standard. Another reason many companies outsource using freelancers is that they may just have a few extra projects they need help completing and not a part-time or full-time job to offer a candidate.
Freelancers providing outsourcing solutions often work on an independent basis for corporate clients. Independent contractors are not employees of the company, but rather pay their own medical insurance. Many independent contractors, as well as other outsourcers, work concurrently for many different clients to complete one or more outsourced projects. Most independent contractors work from home or outside the companies they work for, so the lack of overhead and benefits that companies have to provide these workers are often very cost-effective.
Outsourcing solutions can work well for independent contractors. It may be attractive for these outsourced workers to be able to work from their homes. It often allows them to combine their work with other responsibilities such as childcare. Outsourced contractors can also save money on transportation and work clothes. However, the job offered may pay less than traditional on-site positions and be much less stable in many cases.
When companies outsource work it is called Business Process Outsourcing (BPO). BPO solutions in administration, accounting and human resources are often sought after by businesses. Companies also often outsource web design and copywriting services. While some companies only outsource offshore or land-based work, others can use both options.
As an alternative to temporary outsourcing solutions, some large companies have set up business divisions in offshore countries like India and China. They help the divisions with cheaper labor in those countries. Cheap labor includes engineering and information technology (IT) workers. While these companies can hire higher salaried counterparts ashore, they save money on offshore labor costs.
It is important to note that companies can outsource their training needs. They may hire trainers with experience in a given software program or bring in experts in productivity training. Outsourced training solutions can also include motivational speakers for corporate events.
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