Outsourcing is one of the best ways for companies to boost efficiency. This is by contracting freelancers to work on short-term jobs. Through this, they get quality services from professionals for a short period, which makes it cheaper. Many companies have adopted outsourcing because it has helped cut down costs. Almost 70% of companies subcontract different tasks to get additional services.
The numbers are expected to grow by 7%. This will see more companies outsource their workload. Let’s have a detailed look at the Analysis of why Companies Outsource? We will also check on the predictions regarding the future of outsourcing.
Outsourcing in Numbers
According to different surveys many organizations have attributed sub-contracting of different tasks to be a major cause of their success. So the thriving of many multi-billion industries has been attributed to the ability to hire non-workers. The trend is expected to hit $535 billion come 2022. This is true even as almost 30 % of businesses are likely to boost their outsourcing rate.
Besides, something that makes it a more viable option for many entrepreneurs is that 80% of outsourced laborers were happy with their outsourcing agencies. So, what has led to these numbers?
The major reasons for Outsourcing
There are innovations every day that have seen an increase in demand for new skills. Moreover, most of these skills would be difficult to hire on a long-term basis. The more entrepreneurs need more services the more they get into outsourcing. Here is why subcontracting has grown and is being expected to grow.
Most startups and upcoming businesspeople are not able to afford to pay workers for full-time jobs. And this leaves them with just one option to remain profitable. That is outsourcing the personnel, whose pay is cheaper because they are only paid for what they have done. This has increased the efficiency of SMEs by up to 24%, and improved flexibility to a tune of 18%.
Most people are adopting the remote working model. Nearly 42 % of the USA’s workforce has adopted the work from home strategy. So, this allows most companies to outsource remotely. This has benefited them with a 70% reduction in the cost.
Why do Companies prefer Outsourcing?
Many corporations can attribute their growth to the tremendous presence of external workers and agencies. This has not only given cost benefits but also given them an opportunity. Here is why the preference is high.
1. It allows business owners to focus on their core areas of service delivery. This is by subcontracting the minor tasks.
2. As seen by both large and small enterprises it is one of the best cost-cutting mechanisms.
3. It helped organizations keep off from time-consuming tasks that are better contracted to others.
4. Companies also prefer outsourcing as a way to partner with other key players in different sectors, thus increasing their brand awareness.
Ukraine’s Contribution for Outsource Resources
Ukraine is one of the top countries in terms of professionals for sub-contracting. When it comes to IT resources for business, it has the biggest pool of talents. Finally, you can easily tap into this personnel by extending your team to Ukraine. This number of contractors available can help push your business to the next level.
So, these numbers are indicators of the growth that has helped the business achieve its objectives. With the ongoing trends, these figures are likely to increase. It is thus important for your Ukraine enterprise to be part of this positive revolution.
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