In recent years, India has witnessed a visible growth in the startup ecosystem. Interestingly, the country today is the second-largest startup ecosystem in the world. This growth and success of the Indian startup ecosystem owes to the cost efficiency and outsource expertise available in the market.
Yes, it is the freelancers. Statistics prove that startups find outsourcing work a better option than hiring permanent employees.
Here are 6 reasons why startups believe in outsourcing work to freelancers:
1. Hiring freelancers is way more cost-effective than full-time resources
Cost reduction is the primary motive of any new startup in the market. And outsourcing helps the startups cut down huge.
In-house hiring not only makes the startups liable to pay employees a set amount every month, irrespective of the fact whether the work is done or not, but also makes then liable to share all the additional benefits of a full time hire like medical benefits, etc.
2. Higher returns on investment
When startups opt for outsourcing, they end up enjoying huge returns considering the fact that they save on hiring costs, training, etc. Instead, these companies may end up with better ideas from the past experience and talent of the freelancers.
What can be a better gig when you are saving money and enjoying a better quality?
4. Expert professionals in targeted discipline-improved efficiency
Freelancers are generally expert professionals in their field. For example, web designing, content/video developers, digital marketing, chartered accountants, web development, content writers, etc.
They have more extensive exposure to the fact that they work with varied and multiple clientele, which means they are proficient in their specific skills.
Hence, a startup can get its work done in a much efficient and improvised way owing to the specialized expertise of the freelancers. Moreover, professionals being motivated towards getting more projects end up adhering to strict deadlines.
The startups save a good amount of time by outsourcing, for they need not go through the lengthy hiring processes.
It is easier and quicker to find talent nowadays through outsourcing online portals like ExpertRight.
6. Ease of employment handling
Let’s say a company is not satisfied with their outsource agency’s work. Or they might not be performing as required by the company. In such a case, the startup can quickly stop working with them with immediate effect.
Likewise, companies hire freelancers when they need them. Therefore, pay only what they need for the specific time, depending on your project requirements.
7. Time management
A lot of tasks can be carried out remotely, where need not require direct interaction with the person completing the task. Hence, specific functions that do not require in-house focus can be outsourced.
And therefore, the startups end up focusing on other core competencies that require more attention for business to be carried out effectively. In simple words, you manage your time by focusing on the core functions of your business.
Why don’t startups prefer in-house hiring?
A startup needs to consider the initial and long-term costs of hiring full-time employees. There are additional benefits that a company has to fulfill to its permanent employees like medical benefits, allowances, etc.
Similarly, it has to arrange trainings and certifications that again can be expensive.
Finding talent, interviewing, and negotiating requires a lot of time. Even after a successful hire, there is no way to confirm employee retention.
Losing a staff can cost more than their expertise as hiring, training and onboarding is a lengthy and expensive process. Again, it also means that you have to reinvest back on a new hire. Thus, it can be a loss of time and energy.
It need not mandatory that the perfect hire is as enthusiastic as it was in the interview and hiring process.
Once the salary negotiation and contract are set, the startup is liable to pay that amount to that employee for every specific amount of period, irrespective of whether the work is done or not on time.
For the startups, it is better they outsource for their repeat mundane tasks and put their time, focus and energy on their core functions. This leads them to the maximum output from the cost incurred and makes a good profit in the initial period.
As we understand, startups initially need to maximize the benefits, save money and make more profits to expand, outsourcing comes out to be a good deal to them.
– Article by Ayush Goyal, Founder & CEO, ExpertRight.com
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