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Oursourcing as alternative to hiring

Discussion in 'Employees and Human Resources' started by Corazon, Mar 11, 2016.

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  1. Corazon

    Corazon Member

    Our bank is turning to outsourcing for some positions in lieu of hiring individuals. The cost is greater since the pay of an outsourced worker includes their company's commission. However, the advantage is there are no benefits paid to the outsourced and he can be replaced in a week's notice, no questions asked. It looks like outsourcing is getting popular with big companies in the Philippines because it is more economical in all angles.
  2. Federico.Gimeno

    Federico.Gimeno Member

    The main drawback I see by the outsourcing in my country, is that employees don't get the full law benefits or are offered some weird paying scheme, so the companies can avoid paying taxes and some other shady stuff.
  3. ruener79

    ruener79 Member

    Companies can easily resort to outsourcing if their main goal is to circumvent the law. In my mind, it will work for a certain period of time and quality will suffer. There's no denying that on the short term, they can really reduce costs. But in the long-term, I believe the company will suffer to a certain extent. There is quality to consider. If a company keeps changing employees / contractors, then they will have to contend with quality issues. Before long, their customers will figure out that there's something wrong.
  4. Kyle Smith

    Kyle Smith Member

    When it comes to preserving quality, I think it is important to make sure you are doing your research about the company you are outsourcing from. Companies like Outsourced Sales Management Solutions actually promote how they incorporate keys to providing a successful sales function to their clients. Employees may turnover from time to time, but at least you know they are coming in trained and well prepared for the work days ahead.
  5. Alaine

    Alaine Member

    There's some risk that comes with outsourcing. Workers can quit without giving any notice. It can be bad for your business especially if it might take some time to find a replacement. But the one good thing about outsourcing is [if you are willing to take risks] it can be cheaper [to hire workers online].
  6. T J Tutor

    T J Tutor Member

    I love outsourcing. It's very easy these days to find reputable people and companies through outsourcing channels.
    Dreamer likes this.
  7. VirtualGlobalPhone

    VirtualGlobalPhone Moderator MVP Member

    The word outsourcing has grown out from dictionary to a common mans language. Business is very much matured thanks to Internet and affordable communication technologies, add to that is the cloud based services.

    Its very nice to see how 'starting to doing business' has become so easy now a days.
    T J Tutor likes this.
  8. AJ Lopez

    AJ Lopez Member

    I can see the benefit of outsourcing but I think people not involved in the company (aka customers) will lose trust in your business if they know you are outsourcing just to cut costs. I mean, a lot of business decisions are made according to how much they will cost - but you don't want to look sketchy.

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