Outsourcing Employment Comes With A Lot of Advantages

Companies outsource many jobs these days. No wonder the job market in Third World countries like India, China is replete with so many BPO (Business Process Outsourcing), and other jobs. Outsourcing benefits all the parties involved. Today, a lot of youth are finding employment and making a good career in these fields. If not for these outsourced jobs from the US, UK and other western countries, a lot of youngsters, retired people and even housewives would have not have got a chance to support themselves financially. Some people take up these outsourced jobs as a part time employment to supplement their main income, while others are seriously making flourishing careers out of them. The employers, on the other hand are also benefited in a number of ways. Let’s see how:

Cheap Labor

Labor is available for paltry amounts to US,UK employers in poorer countries. Why will a US employer hire an employee from US if he can get a job done by an Indian or Chinese for less than half the amount and that too without compromising upon the quality? Many times the quality turns out to be much better too! The third world employees are thrilled about working for foreign companies from the rich countries and put in their best. What you’d pay to his/her US counterpart may be cheap according to US standards, but for the third world employee, it may be one of the best rates according to the industry standards of his/country.

Not all jobs can be outsourced, but for those that can be, you as an employer is saving up on money you’d otherwise have to spend on hiring labor from your own country at a higher rate. So this employee mix does help in your saving up quite a bit of money.

Tax Perks

If you want yet another way to dodge taxes, after trying out your usual strategies, outsource your business. You do save up on taxes by doing this. Also you can take advantage of the tax benefits that you get from “unrepatriated earnings” i.e. your earnings from the outsourced business that remain in that country.

No Employee Insurance Or Other Costs

When you hire a US local employee, you’ve got to pay up for Health Insurance, Social Security, FICA, OSHA etc. Added to this are licensure laws for employee maintenance for licensed businesses. You don’t have to shell down even a single penny on these expenses to a worker from another country. So you are saving up on all these costs aren’t you?

Sizing Flexibility

By outsourcing your business you have greater flexibility of sizing the human resources according to your requirement. Downsizing has never been favored by US employees and cases of employee lawsuits against employers who downsized their human resources are on the rise these days in the US. You are answerable even to your third world employees, but as they are not protected by the US employment laws, downsizing or upsizing is a more flexible issue with them.