Outsourcing is a norm today. The comfort level of companies with this trend that was previously considered ‘risky’ and ‘untrustworthy’ has stimulated so much that we see it happening with Manpower as well. The current trend in the industry is to outsource everything that is not “core” to any company’s operations.

In general, labor outsourcing is done in situations where a certain company does not wish to hire in-house. In most IT companies, outsourcing of labor is a frequent feature. Needless to say, this practice helps save costs to a considerable extent. But what are the other reasons that make labor outsourcing so famous?

Helps Strengthen the Core: Outsourcing labor for short-term tasks allows management to focus more on the core activities of the organization. By core is meant tasks of strategic importance. In this way, you are participating in the integral growth of the organization.

Efficiency savings: There is no doubt that labor outsourcing is the right way to cut costs. However, another type of savings that power is ‘efficiency savings’. More focus on the main tasks means efficiency in the performance of them. There is less waste of internal resources on various jobs and therefore efficiency is used in the right direction, judiciously.

Greater operational control: Doesn’t it make much more sense to outsource back-end work that doesn’t require key skills, rather than outsourcing all operations? Maintaining operational efficiency and preventing the secrets of operational excellence from leaking requires strengthening internal operational control.

Improved employee development: When internal recruitment for all other short-term projects is not the main agenda, the focus and energy can be shifted to developing existing internal staff. Training internal staff means improving their efficiency in carrying out core operations and preparing them for internal promotions.

While those listed above are the main benefits that labor outsourcing allows, there are other advantages as well. These include:

1. Non-responsibility for the permanent hiring of people

2. More flexibility in contracting

3. Short-term contracting/outsourcing of experts

4. Improvement in the quality of the work carried out by outsourced labor

5. Reduced training cost for the human resources department, since it can subcontract previously trained labor

6. Reduced cost in the company to pay for the leaves of subcontracted employees

7. Easy availability of labor willing to work night shifts

In general, what outsourcing means to an organization is that when the work is not of strategic importance, external sources who are not fixed responsibilities of the organization can be contracted to perform the work. Such working relationships are beneficial to both parties. Organizations that opt ​​for labor outsourcing do a thorough analysis of how much they can benefit from labor outsourcing in each scenario. Only when it is profitable enough do they proceed with this option. There is no shortage of labor waiting to be outsourced. This makes outsourcing an even more enviable trend.