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The first of course is the fact that it is a cheaper option than to hire in house staff which would in turn incur a lot of hidden costs. However in using the out sourcing option one must consider carefully the set back that might occur should a wrong choice be made in terms of the out sourcing company chosen.
Ensuring the expertise of the chosen out sourcing company is very important and the first of many steps to consider. The talent and technological skills of the out sourcing company must match the requirements of the “customer.”
Trying the various out sourcing companies until a suitable match is found is normally practiced. When an out sourcing company is chosen based on its merits and reputation, further enquiries must be made to ascertain if the company is capable of handling the specific work required of it.
If this is not clearly out lined there is a danger to having to either re outsource the work at considerable cost and loss of time or to have a new out sourcing company chosen.
Sometimes besides the more obvious requirements, there can be some other items that need to be explored before making a commitment to outsource the work to a chosen company. Some companies may require the flexibility of the hiring exercise to be clearly stated and understood by both parties. Hiring specialist without having to keep them on a retainer is especially good for companies that don’t have consistent business to outsource. Therefore it is of upmost importance to ensure both parties’ needs are adequately met before the out sourcing work is awarded.
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