These days, the traditional office workplace is gradually being replaced by outsourcing.
Thanks to the internet, even outsourcing over long distances and to the other side of the world has been made possible and easy.
While having an internal staff is a much more reliable and proven way to run a company, outsourcing also posts benefits for companies, especially those that are facing the global financial crisis.
For one, outsourcing is a cost-effective alternative to in-house staffing, especially if you outsource in countries like India, where thousands of highly intelligent people graduate every year and work in the BPO industry.
Outsourcing also helps share and spread the risk, which is known as the portfolio effect.
Instead of investing largely in just one stock, it is better to diversify your portfolio so that you are able to spread the risk and reduce your total risk.
In outsourcing, multiple companies share the risk, and they do not become too vulnerable when the market goes down.
Occasional peak loads are also better accommodated through outsourcing.
Even if the company spends more per hour with outsourcing during peak rates, this is still better than hiring in-house staff that will not be utilized in between peaks.
However, if peak loads are frequent, hiring may be a better idea than outsourcing.
Finally, outsourcing enhances the development of the internal staff, since the outsourced contractors are the ones who handle the less interesting work and peak loads.
Because of this, the hired staff can pursue their fields of interest and other new endeavors.
Another advantage that outsourcing has for the internal staff is that outsourced consultants can train the internal staff.
Now that the world is facing a crisis, it is time to make use of outsourcing in order to defray the costs that companies spend in hiring internal staff.
At least, it benefits all involved-the company, the contractors, and even the internal staff.