An increasingly popular model for businesses is outsourcing and contracting. These methods of production and productivity have definite benefits, and before moving into a discussion of the specifics of a particular kind of outsourcing (the outsourcing of corporate email), a more general discussion of the cost savings of outsourcing and contracting may prove to be helpful in your eventual decision on utilizing these business models.
Contractors
Using contractors and outsourcing business processes can save a great deal of money for your business. Contractors are temporary workers who complete a task and are often paid per-project. Businesses are not responsible for any of the normal benefits associated with permanent employees, and so contractors can save money while also reducing paperwork.
Contractors are also the right choice to complete short, discrete projects which are non-recurring. As an example, let’s say that you need a grant to be written and none of your current employees have the necessary skills in grant writing or the grant application process. Hiring an employee for a single job would be inefficient and unfair to the prospective employee. Bringing in a new person to your company requires a huge investment, as any business owner knows. Additionally, a rising cost in many businesses is in benefits: the healthcare costs and 401Ks that are due to a full-time employee can represent a substantial yearly sum.
This is exactly the sort of job that is suited to a contractor. When a business hires a freelancer, the hiring is based on a specific skill and an understanding that the job will be limited to a single project. A one-time fee is negotiated and once the project is completed, there is no further obligation. With this said, however, businesses often find themselves hiring the same contractors repeatedly because of high-quality work. Building a relationship like this will benefit your company, and you still won’t have to pay for pension, insurance or other benefits.
