As the economy continues to steadily grow after the economic recession, many companies have considered outsourcing their work to contractors. Outsourcing projects to contractors has become popular for a number of reasons, especially as more professionals begin working at home or starting their own businesses. There are a number of advantages to doing this, as well as some drawbacks. Examining these can help businesses determine weigh the benefits and consider any disadvantages.
Company Advantages
APT Services, one of the fastest growing outsourcing firms in India, offers a number of benefits to working with contractors in business. For one, hiring a contractor on a project saves money because the business owner does not have to pay benefits they might pay a full-time employee to do a similar job.
Additionally, hiring a contractor avoids the stress and cost of time recruiting and hiring a new employee, as the contractor can be hired as-needed. If a business is pleased with the contractor’s work on one project, it is likely they can hire them for future projects as they come.
Another advantage to hiring a contractor includes having an expert on hand with skills essential to completing the project. Contractors often have set niches in which they work, and hiring a contractor that has specific knowledge about the project can give a business an edge. Whether the project involves social media, graphic design, or white paper research and writing, a contractor with expertise will excel at completing the project in ways that work in-house cannot do without pulling attention away from other work.
Company Drawbacks
Freelancer.com CEO Matt Barrie offered a number of disadvantages to companies who choose to outsource. His site connects small business owners to 3 million professionals from around the world, but he recognizes that there can be downsides. One issue that businesses might run into with outsourcing work can present itself in unclear objectives.
“Outsourcing does not relieve an entrepreneur of the responsibility to oversee the work. Monitoring the work progress from time to time is also crucial so the final output comes out according to plan,” Barrie said. Setting clear expectations from the onset benefits both the contractor and the business owner.
Payment disputes may also arise in hiring contractors. Barrie stresses the importance of setting the terms from the onset. Freelancer.com allows business owners to use Milestone Payments, which allows the business owner to release the money only after the service provider has delivered the job according to specifications. Using upfront payments or paying half of the project cost during the project can bring peace of mind to the contractor.
Conclusion
Hiring a contractor brings with it different circumstances and considerations than keeping projects within a business. One must consider different communication methods and contracts when it comes to outsourcing work. However, hiring an expert to complete a project can save the company money, which can help the bottom line while still completing the desired work. It is up to the business owner to determine what best works for them, but outsourcing can be a viable option for both long-term and short-term work.
Megan Harris is a skilled copywriter, blogger and editor with two years' experience freelancing. While her creative career began writing for wedding professionals such as DJ's and lighting experts, she has since branched out to writing for industries like education, technology and social media analytics companies, among others. You can find out more about Megan at her website,