How to Reduce Operational Costs with Outsourcing

Cybalink Solutions Outsourcing Services

Engineering and Construction Outsourcing

Employing the services of a new worker can be very expensive, and often comes with many risks. The cost of hiring new staff in companies that offer specialized services is often much more than most other expenses. You have to pay for the onboarding and training process, in addition to a long list of other miscellaneous obligations, which typically include healthcare, added perks, time-off allowances, plus compulsory taxes.

Current research shows that you’re paying up to 40% more per employee once you add all other miscellaneous expenditures. In addition, when you decide to embark on the conventional recruitment approach, you will certainly have additional advertising expenses to promote the positions you are offering on various platforms.

You may even have to hire a recruitment company or hire your own HR personnel specialized on recruiting the staff you need. However for many companies, another solution presents itself: instead of hiring on-site employees, you can outsource some of your work.

Outsourcing: the new option to save your business money

The Internet has created a new global marketplace that enables any company to hire remote workers that are highly skilled. There are millions of specialists and creative workers online that are ready to deliver topnotch services and that can fulfill the roles required by businesses.

Recent research reveals that a staggering number of people worldwide work as freelancers (even in developed countries, such as the USA). The reason for this is largely because of the unavailability of suitable full-time jobs in their area. As a result, many specialists have taken to offering their expertise over the Internet.

The financial advantages of Outsourcing

For companies that have not yet tried online outsourcing, it is likely that you are contemplating likely pros and cons or outsourcing. Some of the core financial gains of outsourcing are described below:

  1. Lower Salary Cost

  2. This is the most important advantage of utilizing online freelance services. You can save a huge amount of money when you choose to outsource your jobs to online freelance workers. Not only is the hourly rate of outsourcers usually lower than that of full-time employees, in addition, you have to pay for the hours when your employees are not working. On the other hand, freelance services only charge for their actual work hours.

    And, as mentioned before, you also have to cater to health care insurance, incentives, bonuses, taxes and many more miscellaneous expenses when you utilize round-the-clock workers. With freelance, all of the frills are eliminated, which enables you to pay for the exact service that is rendered.

  3. Reduced Real Estate Costs

  4. Since outsourcers don’t need office space in your company, outsourcing allows you to save on real estate expenses plus overhead costs (such as furniture, computers, electricity, etc.). If you’re running an IT company with 600 employees, and decide to outsource 200 of those jobs, the reduced real estate expenses can amount to a huge saving.

  5. Ready Availability of High Quality Specialists

  6. When you employ workers through the Internet, it’s easy to search through a pool of highly trained and specialized experts that advertise their proficiency in specific areas of operation. So, instead of having to hire one person for a full-time position, and then training them for the job(s) you need to get done, you can hire a group of specialists for the same cost, each with their own expertise, to do the work without the need for prior training.

    You can go ahead immediately, and decide to hire a team of online workers that will handle your entire project, based on their various specialties. The best part is that these online experts will only charge for the hours they work, and unlike full-time employees, they can be quickly found and tested as to their suitability for your work.

  7. Lower Marketing Costs

  8. As mentioned above, when you need to hire top-quality talent locally, you’ll probably need to invest a lot of money in advertising the position, and/or hiring a recruitment agency. When you hire outsources, your outsourcing provider is the one who takes care of all that. Hiring top talent is their core business, and you just let them know what you need.

  9. Reduced Training Expenses

  10. When you hire full-time staff it’s often necessary to take generalists that can cover all areas you need, and then train them in the specific disciplines once they start on the job. Outsourcers, on the other hand, can be chosen for one single specialty since you don’t need them to cover other areas as well.

  11. Freedom to scale your project, or cut back rapidly

  12. When you employ round-the-clock workers, your hands are tied and you must ensure that they are paid regardless of prevailing monetary constraints or hiccups. As an employer, that means you can’t make rapid adjustments to cope with various developments.

    However, when you outsource your jobs online, you enjoy a heightened level of freedom to adapt based on your needs. You could intensify operations, slowdown operations, or decide to stop completely for now and resume later. Outsourcing thus eliminates any conventional restrictions and allows you to dictate the pace of your company’s operations. You can effectively reduce your risk while getting great value for your money.


Outsourcing provides multiple advantages in the global business landscape. Not only does it enable you to save money while hiring highly qualified experts, in addition, it also gives you the flexibility to scale rapidly, or slow down your operations as needed. It comes as no surprise then, that 300,000 jobs are outsourced in USA every year.

Get in touch today to book a confidential call with our co-founders Kim Lombardi and John Rodgers.

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