Less cost, faster turnaround, higher accuracy or eliminating a difficult to manage non-core activity are the primary outsourcing motivations. For projects preferring USA labor, MDS utilizes technology specifically designed for a production data entry environment and estimates it can enter data 5 times faster than the typical in house solution. Best of all, this technology and proprietary techniques will also result in improved accuracy and faster turnaround. Offshore labor is also available and is usually a lower cost alternative. MDS and its offshore partners are staffed to handle seasonal variations, overflow situations and one-time projects. Since the decision to outsource often needs to be compared to the in house option, a complete in house cost evaluation should include:
- Employee compensation
- Management compensation
- Benefits
- Payroll taxes
- Turnover costs such as recruitment and training
- Office space
- Utilities
- Desks and office furniture
- Hardware and software acquisition costs
- Hardware and software maintenance and support costs
- Miscellaneous costs such as office supplies, telephone, payroll processing, etc.
- Costs of inaccurate data entry
- Costs of time delays due to inadequate staff
In addition to dollars and cents, there are also strategic advantages to outsourcing:
- Allows your company to focus on its core business
- Free company resources for better uses
- Improve employee satisfaction by creating higher value added positions
- Move difficult to manage functions to an industry expert
- Outsource the risks, hassles and headaches
- Scalable solution to handle seasonality or increasing/decreasing volumes
- Higher accuracy and faster turnaround enhances the image of your company
- Use faster deployment and turnaround time as a competitive advantage
- Outsource the risks of evaluating and deploying new technology
Which is better, domestic or offshore labor?
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