Outsourcing is a process in which the human resource activities of an organization are outsourced so as to focus on the organization`s core competencies. Many industries are fully dependent on outsourcing. The cost of hiring an employee goes far beyond just paying for their salary. Time cost of a recruiter’s assistant in reviewing resumes and performing other recruitment-related tasks, the time cost of the person conducting the interviews and background checks, and various pre-employment assessment tests. The employee can end up costing a company around $3,500.
The reasons are the following:
- More and more companies these days are opting to hire candidates with specific skill sets.
- Cost reduction is one of the main reasons for outsourcing. By outsourcing their jobs the companies can employ professions with higher expertise at a less pay.
- More output with limited infrastructures. This is another example of how the companies can save big money on infrastructure.
- Focus on the core business. The companies can allocate more time and resources on the other core areas of business such as marketing, customer handling, employee welfare etc.