processflows outsourcing vs hiring in house blog post

Outsourcing vs Hiring In-house

Should you consider outsourcing or hire in-house? That is a question a lot of business leaders of fast-growing organisations ask themselves. Both options have advantages and disadvantages, which we will explore in this article.


Hiring In-house


If you have a constant need for more resource to support your main business activity, the most natural way to scale up is to hire and nurture your core in-house team. For example, companies that are in the business of building tech products need a core team of engineers to implement the product to specifications.


However, business owners should consider their needs before building their own team because maintaining an in-house team usually carries hidden costs.


As well as salaries, employee benefits, office space and technical equipment, employees need constant training and certifications to keep them up-to-date with rapidly evolving business standards. These added costs can come as a surprise to most CEOs but such activities are crucial for making a successful team.


The cost of management is another hidden expense associated with growing an in-house team, it also means an exponential need for effective managers in order to maintain productivity levels of all teams. The demand for experienced Project Managers specialising in managing teams with specific functions is growing, as is the cost associated.


It takes on average 3-4 months for a new employee to adjust to the new job position and become effective. Considering all of these factors for building an in-house team, if you don’t have an ongoing increase in workload or are filling positions that are non-essential for the business, hiring new employees internally may not be the best option for your organisation.


Outsourcing projects to nearshore or offshore vendors


The alternative to building an in-house team is hiring an external outsourcing company, which specialises in the exact services you currently have a need for. Nearshore or offshore service providers are ready to support your company, without the large upfront investment, whether that be allocating a single shared agent to help with a one-off project or a dedicated team with longer engagement.


The advantages are clear – a business owner does not have to invest in an in-house team and specialised management; outsourcing should be the obvious choice for any start-up. The cost to the business will be dramatically lower – no need to budget for training, management, salaries, benefits and additional office space. The outsourcing provider will handle recruitment, associated employment laws, equipment and infrastructure to host the staff.



The issue that most business leaders face with outsourcing projects is finding the perfect nearshore or offshore partner… At ProcessFlows Outsourcing, we have assembled dedicated teams helping numerous companies with their outsourcing needs.


ProcessFlows is the perfect partner for your Outsourcing needs, talk to us today about expanding your business in the most cost effective way.

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