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There is much more than meets the eye when looking at employee costs. Salary is not the only measure as costs of recruiting, overheads like compliance and administration of employment, payroll linked taxes, social security and social welfare like PF, pension, medical & other insurances and what have you! All add up.
Besides incentives, bonuses and not forgetting leave salary, closed holiday cost etc. all have financial implications. Going beyond office space, equipment and linked lighting/energy, use of consumables, not forgetting Training all when accounted end up at least more than two and a half times of what is paid out as salary.
Weighing the long list of costs as against outsourcing of an office process or a business activity, the latter surely is more beneficial when subjected to a Cost Benefit Analysis. Outsourcing makes it easy to seek clearly defined deliverables, precise timelines and desired quality of service, that too without any gaps.
Backlogs or scrappy work or for that matter need for intensive supervision would be things of the past once a competent service delivery agency is located. It would also be possible to ensure consistent and predictive delivery and that too at a reasonably better cost than with inhouse attempts.
So what’s holding us back – let us reap the benefits and cut the organizational flab as also the costs.
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