Dedicated Employees or Offshore Freelancers?

SMEs should hire Dedicated employees instead of offshore freelancers while outsourcing

The dynamics of outsourcing differ considerably when it comes to MNCs (multinational corporations) and SMEs (small to medium enterprises). MNCs, with large budgets and resources, are in a position to partner with large outsourcing service providers and, in turn, open their offshore offices in countries like India. For obvious reasons, SMEs cannot do the same and, subsequently, many of them reduce costs by hiring offshore freelancers.

For short-term, low-budget, and low-level priority work, hiring an offshore freelancer for a one-off project makes perfect sense. The risk is minimal, the cost is low, and the work is not of the highest priority. If hiring a freelancer does not work out, then the client has not lost much nor potentially jeopardized his business. So, provided the freelancer delivers the desired result in a timely manner, a client can make significant savings. In this respect, offshore freelancing does have a credible and important market to serve.

However, due to a lack of options and in an attempt to keep costs low, SMEs often hire offshore freelancers for long-term projects and for work that is at the very core of the company’s business. Which is essentially hiring an offshore freelancer to work as a full-time, dedicated employee, albeit remotely.

Hiring a freelancer who is working with multiple clients, unsupervised from home and with limited resources is obviously not ideal for such a purpose. SMEs are conned into this situation because there is no other alternative or method by which they can hire dedicated, full-time employees in a foreign country. As a result, even for important and long-term work, SMEs are forced to fall back on and hire offshore freelancers in an attempt to keep costs low. In this respect, offshore freelancers are unable to provide the solution required by SMEs.

Some of the main shortcomings of outsourcing with freelancers and why they are unsuitable to work for clients on a long-term basis as dedicated employees include:

  1. Priority: Freelancers work for numerous clients simultaneously and prioritize their work in accordance with the highest paying client.
  2. Consistency/ Dependability: Freelancers work for numerous clients simultaneously and prioritize their work in accordance with the highest paying client.
  3. Dedication: Offshore freelancers are not dedicated to your work because you are not their sole source of income nor are you legally committed to being a consistent or long-term source of income. Therefore, they are never 100% dedicated to your work like a full-time employee.
  4. Short term solution: Hiring a freelancer is a completely unregulated process. Companies are completely at the mercy of a freelancer, and should something go wrong, there is no one to turn to.
  5. Professionalism: Hiring a freelancer is a completely unregulated process. Companies are completely at the mercy of the freelancer, and if something goes wrong there is no one to fall back on.
  6. Supervision and management: Freelancers work independently and so there is no physical supervision or management.
  7. Dummy offshore freelancers: The rating or feedback of many freelancers is often untrue, with many of them purchasing other freelancers’ profiles in an attempt to win contracts. How do you know your offshore freelancer is as good as they say they are?
  8. Collaboration/Interaction: Freelancers work independently and in their own time zones. Collaboration and interaction is thus to a minimum, especially, when he/she is situated halfway around the world.
  9. Infrastructure/Hardware: Does your freelancer have the infrastructure and hardware to work efficiently and work remotely and closely with you? Probably not.
  10. Confidentiality: Sending your project to a completely unknown entity can jeopardize the confidentiality of any of your sensitive data.
  11. Trust: When you are outsourcing to a freelancer, you’re hiring an individual and not a reputable company. Therefore, a freelancer can possibly breach the trust.

In summary, while freelancers might be highly skilled and might lower your cost, hiring them is likely to be a highly inefficient and time-consuming process if they are hired on a long-term basis. In such cases, the client is often unable to communicate and collaborate with the freelancer, not knowing if they will be working from one day to the next. The client is quite unsure about the freelancer’s commitment and thus keep looking for new freelancers. It outweighs the benefits one gains in cost reduction. In truth, it defeats the whole purpose of outsourcing.

Remote Employees - the natural answer to the SME outsourcing demand

Efficiency is the key to successful outsourcing and now SMEs have an alternative option by way of hiring virtual resources for their long-term projects. A remote dedicated worker is first and foremost an employee, not a freelancer. Therefore, by hiring them you get the reliability, stability, and the consistency that you get when you hire a local employee. Furthermore, your virtual resource works only for you and so you get the priority and dedication your work deserves. Additionally, you can work with the same employee every day, have the employee work the same hours as you, and have high levels of collaboration and interaction with your employee. Lastly, when you hire a virtual professional, the employment is completely regulated. Your dedicated employees are managed and supervised at all times by managers and HR executives in an office equipped with the latest hardware and infrastructure. The managers and HR executives act as physical on-site representatives of the client, managing the client’s employees on their behalf and working with the client to manage the employees as per the client’s instructions. Furthermore, in companies like Virtual Employee Pvt Ltd, a dedicated recruitment department takes care of the entire recruitment process, so you are confident of your employee’s shared level of expertise.

Being a remote staffing company, we help you hire dedicated, full-time employees. Our office, virtually, becomes a subsidiary and extension of you local office. Shipping valuable, long-term projects is, therefore, a lot more practical and effective with virtual resources as opposed to an offshore freelancer. Therefore, we’d recommend you to hire remote dedicated professionals rather than freelancers.