As the new year begins, it’s not uncommon for businesses to start adapting new strategies. Perhaps they may be looking for adjustments, or want to try something new. Regardless of the reasons, many different strategies are being considered by businesses of scales. Current communication technologies have made it easier to collaborate with more talented employees overseas. This has led to the rise of offshoring and outsourcing becoming viable business solutions.
With this rise also come new opportunities to take advantage of a global workforce. Once such opportunity is the consideration of freelance work. Hiring freelancers to different functions are often seen as a way for businesses to produce content at a cheaper cost.
Sound familiar? Well, when you list down what both offshoring and freelancing do, similarities will pop up. However, these similarities do not often account for the quality of work produced. Although both have the same approach, offshoring is a much more worthwhile investment than freelancing.
What freelancing functions means
One of the biggest reasons companies look to freelancing is cost. Compared to most business strategies out there, hiring freelancers for a set amount of time will them less. With no overhead to consider and with the right people, massive savings are to be had.
However, freelancers are also not very reliable. Because they are not fully committed to your company, they may not be available during crucial moments. Moreover, this also means that they are taking projects from other companies and you may not be given top priority. We also predicted last year that data security needs to be a top priority for companies. Consider the security risks that may arise from hiring freelancers who are not contractually bound to you.
Offshoring as a more cost-effective solution
Although offshoring is pricier than hiring a freelancer, it is still the more cost effective. Hiring an offshoring staff for different functions is much easier to manage than freelancers and you benefit from your own quality control. It is often recommended for medium, large and listed companies to consider offshoring than it is to freelance. The people who will make up your offshore team are often put through rigorous screening processes to see if they are up to your standards. Some offshore providers are not content with just supplying “okay” candidates to their clients. They want to make sure the people making up offshore teams are the best among the rest.
The key word here has always been “dedication.” Your company is given top priority on all the resources and assets produced by your offshore team. They know what your business objectives are and work for you to accomplish them. Through this, companies also benefit from better security and lowered data theft risks as well.
A new outlook for the year
To its core, whether you choose to offshore or freelance will fall on what you choose to accomplish. No business strategy is perfect, and offshoring is no exception. But if companies are willing to take the risks and dedicate resources to managing their teams, they will produce the needed results to see in the long run.