4 Amazing benefits of project outsourcing

In an onsite outsourcing arrangement, the contractors work at your company's premises. For projects such as construction, on-site outsourcing is a sound choice.

As the contractors are physically present at your premise, communication and supervision, becomes easy as you can directly oversee them. 

It is the process of hiring contractors located in the same country or region as yours. As the third-party workers are from the same region, there wouldn’t be any language or cultural differences, which results in smoother communication. 

In nearshore outsourcing, you take a step away from your own country and hire contractors from a nearby country. So if your organization is located in the United States, you could hire staff from Canada or Mexico.

As their proximity is near your region, it reduces the odds of time zone lag and you can communicate during your standard business hours. Nearshore outsourcing also provides you wider access to a talent pool than onshore outsourcing.

Offshoring is when you hire third-party contractors internationally. It offers the highest flexibility in terms of accessing the talent pool, as the sky’s the limit from where you can hire. Plus, offshoring can lead to potential cost savings if you hire from third-world countries.

However, coordination can be challenging in this scenario owing to language and time lag differences. 

It is obvious that full-time employees are expensive than contract workers. For instance, when you hire a full-time employee, you need to invest in their onboarding, training, healthcare insurance, and recurring compensation.

However, when you outsource your work on a contract basis, you only need to pay them for the project and no extra cost of insurance and training. Also, if you operate from a first-world country, you can save more by outsourcing your projects to third-world countries like India.

The talent is comparatively cheaper due to the lower cost of living, and you can leverage the exchange rate to your advantage. 

By outsourcing, you get a wider range of talent that is not just limited to your geographical boundaries. This opens up the room for fresher perspectives and unlocks higher efficiency.

Moreover, if you end up using on-site outsourcing, then even your employees can collaborate with them and it creates an opportunity for improving their skill sets. 

By outsourcing the tasks, you can save up the time of your internal staff and channel that time to focus on your core competencies.

Fun fact, even WhatsApp — a leading messaging platform — during its initial days, outsourced most of its app development to developers in Russia. This allowed their core team to work on customer support and daily operations. 

Let’s say you wish to make a mobile application for your eCommerce business. Now you can either hire, developers on your own and then get the work done or outsource the work to a software development company that specializes in app development.

Which option do you think is more convenient? Obviously, the latter, as in the first one, you need to endure the painstaking process of finding and training them. Whereas in the second option, you don’t need to do any such hassles. 

On top of that, project outsourcing can also lead to higher efficiency as the company is already experienced with mobile development. This way, you get faster delivery with lesser mistakes, leading to a competitive advantage.