Costing of outsourcing versus hiring


New member
I have to agree that the company can have savings when you outsource a worker. The computation is in terms of 20 years of service that will entail costs on the benefits. But what about outsourcing an entire unit, is it really cost effective or just a hype? Don’t forget that the good performance of an outsourced personnel is short-lived since on the back of his mind is the fact that he is not an employee but just a contract worker.


I would say that in the long run outsourcing cost will still be minimal compared to hiring. Take note that the benefits are not cheap especially when the company has a nice retirement package that includes trips abroad and stock certificates (of the company). You don’t incur those expenses when the work is outsourced. However I understand that outsourcing is more expensive at the outset.


New member
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    • Outsourcing — the transfer of the organization, on the basis of the contract, certain types or functions of industrial business activities of another company operating in the desired area
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