“It costs how much?!”, I hear you cry! Initially, the hourly rate of outsourcing may seem expensive compared to that of your own employees. Surely, you’d have to be mad to pay someone a higher hourly rate to do the same job?
However, the cost savings from outsourcing outweigh this!
You avoid outgoing costs associated with:
- hiring a new employee: with the whole interview panel having to take time out to interview candidates, with no guarentee you’ll find the right person for the role
- employer taxes
- training: many companies have a training budget in place in order to upskill their employees. However, by working with an external vendor, you can save money in this area. Good vendors will come with all the qualifications and training required to do the job in question. Aside from an introduction to your business’ specific way of doing things, vendors are ready to start immediately.
- equipment and energy costs: as vendors often work from home or from their own offices, you can save money on equipment and energy. They will have their own computer, laptop and phone so you won’t have to provide them.
- holiday pay
- sick pay
- maternity leave
- pension contribution: as they are not an employee, you are not responsible for contributing to their pension costs. As these are forever increasing, this could be a big money saver for your business.
If you decide that you no longer need that extra help there is less of a commitment to the external vendor compared to an internal employee.
Overall, when calculating the cost of internal vs external, the majority of times external vendors are cheaper. So, take the plunge now and work out how outsourcing could save your business time and money!
Unsure about what outsourcing is? Click here to find out more!