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Why Outsource?
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Outsourcing vs. Hiring
Considerations for Corporate Executives and Senior Managers.
Cost
Costs associated with hiring a Full Time Employee (FTE) for programming and development tasks can be as much as 2.5 times more than the cost of outsourcing the same tasks to a consulting firm. When considering whether to outsource or to hire, corporate leaders must be sure to consider all costs:
- Salary
- Benefits
- Insurance
- Capital Equipment
- Training
- Work Space
Capacity
Most projects for which a FTE is initially hired are ultimately completed. Although other projects may follow, there can be downtime in between. By outsourcing, companies can minimize staff-related overhead costs associated with gaps between projects.
Exposure to Updated Technology
A consulting firm typically has a number of consultants supporting the requirements of many clients simultaneously. As such, consulting firms work on a variety of projects based on a variety of technologies. This results in a knowledge base that greatly surpasses that which can be obtained by any one individual and benefits all clients of the consulting firm.
Specialization
A consulting firm can provide its clients with consultants that have very specialized skills for a particular task. When hiring a FTE, corporate leaders must consider candidates who may be more “general” in the event that future projects do not call for a specific skill.
Expediency
A consulting firm can provide multiple resources in order to meet aggressive project schedules that are driven by “time to market” or other demands. Hiring FTE to meet accelerated deadlines may present corporate leaders with termination issues when the project is complete.
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