
Outsourcing, quite simply, involves subcontracting work to another location.
Companies outsource for many reasons. Contract workers and temporary employees
can help out during peak times, save companies money on benefits (which can
sometimes equal 40% of employee salaries), provide expertise not available
in-house, turn around fast deadlines, fill high-demand jobs (such as information
technology professionals), and reduce the need for full-time staff layoffs
during slow times. Outsourcing can also boost a workforce pared down by
downsizing.
If your
company has decided to outsource and it falls on your shoulders to find
contractors, we can help.
Leap
Career does not use offshore contractors, which is an appealing option
for many American companies faced with finding offshore help. Many of the
challenges associated with offshore outsourcing can be avoided by outsourcing
within the United States. We can offer you significant savings, while
preventing language and cultural issues, resentful domestic employees, shrinking
salary differentials, high turnover, deficient infrastructure, and even the loss
of social capital, all while maintaining a high level of quality control.
As more
companies turn to outsourcing to meet their fiscal needs, the benefits of using
contractors in the United States will continue to grow, and Leap Career is proud
to be a leader in this outsourcing solution.
Outsourcing, in a Nutshell
The practice of outsourcing is
steadily increasing, as it allows companies to focus on core-competency areas
and releases them from resource- and labor-intensive functions, which can be
performed by trained personnel at much lower costs than they are currently
having to pay.
Functions that are being outsourced
range from customer service and telemarketing to information technology
management, software development, market research, and even financial portfolio
management.
Outsourcing must be handled carefully. There's more to contracting than the
bottom line. Contingent workers must be added into the overall staffing
strategy without damaging employee morale, and an overall staffing balance must
be reached. Leap Career offers the assistance of qualified professionals to
accommodate your outsourcing needs.
There
are downsides to outsourcing, as well. Existing employees might feel threatened,
and indeed unions often resist any attempts to outsource. Additionally, outside
help may not be as loyal as permanent in-house employees.
The
bottom line: Leap Career can save you time and money, as we are outsourcing
experts and will assist you with any outsourcing transitions that lie ahead for
your business.
Some
Outsourcing Tips
Give
managers and employees as much notice as possible that some functions will be
outsourced. Make the transition in stages, minimize layoffs and transfers, and
try to anticipate any problems that might arise.
When deciding on an outsourcing company, choose carefully. Most contractors,
whether individuals or firms, are brought on board via requests for proposals.
Don't automatically take the lowest bid. Consider such things as expertise,
experience, ability to merge with your company's goals and culture, and
recommendations from other clients.
With
onsite temporary workers, managers need to set clear expectations for temporary
and permanent staff. Each temporary worker should have a supervisor, with set
working hours, duties, priorities, and a workload planned in advance. They
should be introduced to other staff members and given the same access to tools
they need to do their jobs, including adequate workspace and relevant company
procedure manuals.
Most
outsourcing firms are based in the United States; some are located in the United
Kingdom or Australia, and fewer still are based in Europe. By contrast, most of
the outsourcing workforce is located in Asia. There have been loud protests
against outsourcing in the United States, and more recently in Australia, since
professionals may be dislocated—when job functions are outsourced, current
staffing experiences a natural shift, too. This kind of dislocation is mostly
temporary, however, and there are very few highly skilled professionals who
actually lose their jobs due to outsourcing.
Career Success Story
CEO
Calvin Northen was faced with the necessity of finding an offshore company to
outsource his claims processing unit. Unlike his company's major competitors,
Northen hired a outsourcing expert to contract a company within the United States
who could handle his needs, with a significant decrease in costs.
The
result? The "Project," an entity which included Northen's facility in
Dubuque, Iowa, as well as his outsourcing contractors. The Project provided
jobs, training, and modest salaries for employees in small communities
throughout the country, and has led to significant savings for Northen's
customers. The real payoff for the company, however, has been lower employee
turnover, thus providing a higher continuity of service and savings all around.
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