Companies looking to outsource often do so because they are looking for a level of expertise or capacity that is not readily available within their own organisation.
Outsourcing allows enterprises to access a wider pool of potential workers, because the search is not limited by location. This means that instead of being restricted to a local pool of applicants, you can extend your horizons - even globally if you choose. This means that the level of expertise on offer will likely be higher than if you restricted the search to within a local radius.
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This is the reason 69 percent of companies are outsourcing IT in the UK, and no wonder. Going down the IT outsourcing route can definitely save companies a few pennies. It means that instead of bringing on more staff in-house at a fixed cost you are employing contracted workers.
This removes the necessity for expensive training of employees and providing other employee benefits such as insurance or sick pay. You can also hire on a per-project basis, meaning you only pay contractors for the work completed, rather than tying your business into a lengthy contract. Having said this, some contractors can quickly seek to renegotiate the terms of the work, and employers may find the total cost of outsourcing steadily inching up.
"Outsourcing still offers an opportunity to reduce costs through offshoring, although care always needs to be taken to factors such as the cost of remote working methods, taxes and transfer pricing, for instance," says Pepper. "Additionally, it can improve access to scarce skills at times of peak demand, for instance in cybersecurity."