Why Outsource
The Real Cost
What is the cost of an employee? Based on typical metrics, an employee's real cost is at least 1.3 the base salary, which include:
- Salary
- Taxes
- Benefits
- Space/Rent
- Equipment
- Overhead
Example: 30k salary really costs 40k or more
Tactical Advantages to Outsource
Reduce or control operating costs
Provider's lower cost structure is one of the more compelling short-term benefits of outsourcing.
Resources not available internally
Outsourcing is a viable and important alternative to building the needed capability from the ground up.
Functions difficult to manage or out of control
Does not mean abdication of management reponsibility.
Top Strategic Advantages to Outsource
Improve business focus
Allows company to focus on broader business issues.
Access to capabilities
Brings extensive resources to meeting the needs of customers; access to new technology, tools and techniques that the organization may not currently possess; more structured methodologies, procedures and documentation.
Free resources for other purposes
Allows an organization to redirect its resources from non-core activities toward activities that have greater return in serving the customer.
Three Types of Workers Ranked
Listed below are three types of workers ranked.
Ranking: 1 = Best Case ; 2 = Fair Case; 3 = Worst Case
| Certainty of process/expertise | |||
|---|---|---|---|
| Retention | |||
| Cost | |||
| Overall Value & ROI | |||
| TOTAL (Lowest score is best value) |
Bucar Group provides the best of overall employee type work and cost savings.