Outsourcing vs Insourcing

Productivity, efficiency and flexibility is the mantra of business leaders, but the critical factor is your workforce. With the right people onboard you can increase productivity and achieve your goals faster, but to do that, you need an efficient recruitment and hiring model.

This brings us to the question of outsourcing vs insourcing. The former being a highly successful, efficient, flexible and cost saving model of hiring new employees. The latter is the traditional pathway for hiring staff that’s often time consuming, frustrating and expensive.

Let’s take a look at both outsourcing and insourcing, so you can decide whether your business can benefit from a change in your hiring practices.

What is insourcing?

Insourcing is the model traditionally used by most companies today to hire new employees. Once hired locally, these employees are allocated to specific jobs, roles, tasks or projects. All work is kept in-house with no outside, freelance or outsourced input.

Pros of insourcing

One benefit if insourcing is that you’re using your own people to manage your operations. These people are dedicated to your company and understand your brand and its messaging.

They are onboard with your company’s identity, culture, values and ethics and are more than capable of representing your company to the public. Another benefit of insourcing is that you completely control the processes and systems used by your in-house employees to achieve your company’s goals.

These have been the benefits that have bolstered adherence to insourcing – familiarity and control. However, when compared to outsourcing to a reliable offshore outsourcing company (such as Outsourced), they no longer continue to be as meaningful as once thought.

Cons of insourcing

The obvious disadvantage to insourcing are the costs involved in recruiting, hiring, onboarding and training new employees. Whether these new employees free up existing in-house staff to work on more sensitive tasks or projects or whether they are engaged specifically to work on designated tasks and projects, new staff still need to be hired and that costs money.

What is outsourcing?

Outsourcing is where you contract a third party company to manage the recruitment, hiring and onboarding of new full-time, dedicated employees for your company. Generally these new employees are hired locally, but they can be located overseas (termed offshore outsourcing).

Pros of outsourcing

When you outsource staff overseas, you can save up to 75% of the costs of hiring locally. Your in-house staff manage your core tasks, while your outsourced staff manage your non-core tasks and projects. Outsourcing gives you access to a large pool of talented, experienced and skilled professionals who work full-time for your company. They quickly come up to speed with your company’s values, ethics, culture and goals and you retain full control over their work.

Cons of outsourcing

When you partner with Outsourced in the Philippines, there are no downsides to outsourcing. That’s because your new staff work in our state-of-the-art facility in Manila. We provide all the resources they need, manage all their HR requirements, sick leave, holidays and payroll. To ensure they are fully compliant with your goals and desired outcomes they use your processes and systems, which are managed by your in-house staff. You have direct control of their day to day activities, whilst we manage all their daily needs.

Outsourced is one of the leading providers of full-time, offshore outsourced staff in the Philippines. We are more than happy to discuss your staffing needs and explain how we can help your company achieve your goals, quickly and efficiently.  Contact us today for more information.