The Reality Of Subcontracting

The reality of subcontracting

Introduction

In terms of personnel subcontracting, we can determine that there is an investment when the costs of these are translated into productivity and well -being for the contracting company. So, there is return of investment in outsourcing it, this is quantifiable. For example, when referring to the commercial relationship with Scandinavian organizations;These require to formalize any type of hiring, which expedite the calculations, and that are very precise, demonstrable and convincing.

Developing

What do we measure in the return of the investment outsourcing it? To know how much it really costs to subcontract significant workers at a certain distance, we must guide ourselves by a measurement model and take into account some variables that intervene to make the employment relationship effective. The variables or factors involved in the measurement of the return on investment outsourcing IT, are known as: operational costs, accommodation, work equipment and implements, furniture, logistics among other social costs and administrative costs related to offshore recruitment.

After including, even travel expenses (ticket cost and other per diem) of each offshore employee, such expenses must be justified in such a way that the contracting company does not financially harm. As is the case of Danish workers, who regularly travel to Cairo to support their countrymen who work there. Also, other employees who move to Denmark during variable times (on dates and duration).

These costs at the end of the return measurement, must reflect resource savings or productive investment, instead of meaning great unnecessary expenses.

We must know that each measurement represents the sum of the costs during the annual subcontracting of the company;and must coincide with the properly budgeted amounts. This annual measure allows to determine and assess real investment in time. Advantages of investment outsourcing IT: although the model that serves to measure the return of said investment is not so simple;It is essential for those who need to know, whether it is worth it or not, hire outside employees. We understand that there are countries that have put into practice investment in outsourcing IT, successfully.

More and more foreign personnel continue to hire. We can quote Canada, whose businessmen, in one way or another they have seen their investments return in this regard, as soon as they continue to publish requests of this type of personnel in Outsourcing IT, so we believe that in one way or another they feel benefited. In cases where by migratory phenomena, many workers even qualified leave their countries, looking for new opportunities regardless of more forced jobs, during longer working hours and in exchange for minor wages wages.

conclusion

These conditions are used by companies, who capture these workers, in order to reduce their costs of up to 40 and 60 % per year. In the case of offshore employees that will be hired to replace the Danish labor. It will be convenient if the results of the ROI (investment return), is profitable. Yes Roi (%) = (Investment Return – Investment Cost) / Investment. Many foreign professionals, for example: Venezuelans, today are in need of doing work other than their academic and labor preparation.