While more and more SMBs start appearing on the market, the business owners start realizing that this is of utmost importance for them to bring more efficiency to their daily workflow and yet not to sacrifice their productivity over it. In light of the recent pandemic, it became very obvious that labor outsourcing is definitely a way to go.
There is no doubt that labor outsourcing has become the biggest trend in the employment world over the last decade or so. What is the essence of labor outsourcing? This can be easily described as a process of sending certain job functions outside a company or organization instead of handing those locally.
History of outsourcing
The first-ever mention of outsourcing dates back to the Industrial Revolution in 1760. Before that, craftsmen were mostly creating their products by themselves without relying on external assistance or supply of materials. However, everything changed once new manufacturing processes were introduced – business owners realized that they could create the same products with more beneficial margins by outsourcing the labor. At that time, outsourcing just meant transferring the textiles or tools to the nearby factory and using the machinery to scale production.
Starting from the 1970s, business owners found a way to provide their customers with the same services and products and yet do that spending fewer resources, both human and financial.
Today, we can see that outsourcing is slowly but surely becoming normalized and common as an integral component of daily business operations. What is more, in only the last 8 years, the global outsourcing market has doubled in size. Namely, approximately 80% of companies that resort to labor outsourcing, report feeling happy about the results.
How it works
Just by analyzing the name of this business trend itself, we can understand that labor outsourcing is when something is going out to find the sources needed for the success of the business.
In a way, outsourcing can be traced back to large manufacturing companies, which hired outside companies to produce certain components and parts they needed for the production and manufacturing of their own products. Namely, nowadays, labor outsourcing looks a bit different in a way that it mostly focuses on service outsourcing companies are hiring outside businesses to provide specialized world and expertise.
Thus, many smart business owners create their business with their own terms in their native country and seek potential employees outside in the countries where labor is usually way cheaper and more accessible. Therefore, by paying these foreign workers above-average salaries, business owners can get great results without actually sacrificing the quality of the work. So, that is a win-win situation for both the employer and the employee. When done right and ethical, labor outsourcing can do wonders, no doubt.
Outsourcing services are spread along with a wide range of businesses and industries from building maintenance and security to entertainment and online gambling.
For instance, Canada is a huge hug for labor outsourcing today. And there are several reasons for that. Canada is a country with a stable economy and, what is even more important in this case, a population that speaks English natively and is in relatively the same time zone as the employer. And while the quality of life there is pretty good, businesses from countries like the UK and the US often prefer to hire employees from Canada simply because they are as competent as in their countries, but the average salary rate there is slightly lower.
Moreover, Canada has extensive experience of doing things remotely, especially in online industries, like online casinos. This is exactly why the real money online slots Canada are accessible around the globe. Entrepreneurs in Canada are open-minded and are willing to collaborate and share their knowledge with the rest of the world. This can definitely be named one of the best examples of outsourcing, embracing accessibility of online services, and creating a safe environment for everyone in online entertainment. Usually, countries with extensively developed outsourcing structures are open for communication and both-sided assistance.
Outsourcing geography
There is a list of countries that are most suitable for outsourcing. One of these countries is definitely Venezuela, Ukraine, Moldova, Serbia, and Armenia. While average salaries there are quite low, the quality of work is astonishing. Plus, as there are not that many good job opportunities there, truly good employees are very eager to start working straight away and offer a great quality of performance.
Some of the countries and are still developing, can be a great source of human capital for more developed countries. Also, by seeking employees there, foreign business owners are actually contributing to the solution of an unemployment problem and the overall development of a healthy business environment there.
Therefore, if employees rights are not being violated and everything is taken care of, there are great benefits coming from labor outsourcing that help both businesses and workers everywhere.