Choosing between a direct hire and an outsource

[Alexandoy]

With the popularity of the outsourcing most of the big companies are getting outsourced workers instead of hiring them. The expense for an outsource is much higher than the salary of a hired worker. But on the other hand the company saves on the benefits of the hired worker. Much more there’s also the retirement pay of the hired worker. It is scary to think that big companies are outsourcing the manager of some departments. Maybe sooner or later there will be no more hired employees.

I am not really against outsourcing because when I was general manager of a Japanese software house I also did outsourcing for computer programmers and project managers. But that’s for the short term only because of a surge in projects. For a long term I still prefer the hired employee because they can be developed not only for their skills but also for their loyalty and dedication.