Outsourcing has many pros and cons.  However, this is natural because every business endeavor or solutions has its own advantages and disadvantages.  The key is how to leverage the pros of outsourcing in order to neutralize or even eliminate its cons or disadvantages.

First, outsourcing is an effective cost saving measure.  It significantly reduces expenditures and lower in-house operational cost.  By outsourcing business segments and operations, companies can save on resources that will be devoted to wages, technology solutions, IT infrastructure, energy requirements, and technical expertise.  Companies can also increase their productivity through outsourcing. 

Offshore outsourcing makes it possible for companies to manufacture and deliver products and services for twenty four hours.  This is especially true if the offshore location operates on different time zones.  So production and deliveries will not stop without paying additional overtime pay to workers.  This significantly enhances productivity and profitability.  By freeing resources and staff efforts, companies can concentrate on improving their main business functions.  This could raise the standards and quality of their higher end business operations.

On the other hand, outsourcing entails risk such as loss of control for some business operations.  Through outsourcing, some company trade practices can also be compromised thus losing an advantage over its competitors.  The local labor market is also highly disgruntled by companies outsourcing their business processes.  This could lead to labor unrest at the home front which could be very detrimental to the company s operations.

Before deciding to outsource, companies are generally advised to weigh their options if the benefits of outsourcing will be greater than its disadvantages.

Probably the most outsourced back office support and service is human resources.  Specifically, hiring new employees is the most common human resource aspect that is being transferred to outsourcing companies.  The recruitment process is probably the most intricate and elaborate segment in human resource management.  To offload this HR segment and free its human resources staff to more critical tasks, companies are contracting third party talent solutions specialized to supply them with qualified employees.

Recruitment process outsourcing brings a superior system to the hiring procedures of companies.  Service providers of human resource management offer industry best practices in talent pooling, screening, and hiring.  Recruitment processes outsourcing providers could easily scour the labor force and find the most suitable candidates for the company s personnel requirements.  It significantly enhances retention and optimization of employee talents.

Recruitment process outsourcing providers can also speed up the hiring process thus eliminating the risk of long term disruption of work and under staffing.  The speed of recruitment can also impact on productivity which is beneficial to company productivity.  Recruitment process outsourcing will therefore improve the company s hiring schedules which could be critical especially in urgent projects or critical business operations.  The best recruitment outsourcing provider should work closely with the company s human resources department.  This will improve common language and understanding of the requirements needed by the company. 

The ability to work with recruitment process outsourcing provider will enable companies to reduce unqualified hiring and fast turn-over of employees.  In this way, companies can enjoy continuity and uninterrupted operations of important business segment.

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