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1 month ago (16/04/22) 195 Views

Outsourcing

What is outsourcing? What is the difference between freelancing and outsourcing?

In line with today’s dynamic world, industries are improving in all areas. Established companies train themselves to build skilled workers, but many companies lack skilled workers. These companies do not have manpower and other resources. The question is, can outsourcing be the solution?

Outsourcing

Things like freelancing and outsourcing come in handy in the mentioned situation. In both cases the manpower required for a company is hired from outside to get high quality results keeping the cost low.

Although the terms “freelancing” and “outsourcing” are often used interchangeably, there are differences between the two terms. Although these two things are contradictory in terms of money, basically two things are opposite of the same coin.

Many people think that outsourcing and freelancing are synonymous. Let’s find out in detail about what is outsourcing, the difference between freelancing and outsourcing, etc.

What is outsourcing?

Outsourcing is the act of hiring someone outside the company to provide a service or make a product. In other words, if a company does not have the required manpower or skills to perform a job, then it is called outsourcing to hire someone who is not an employee of the company.

In 1979, outsourcing was first considered as a business strategy. This concept became a major component of the business economy in the 1990‘s. However, in many countries, outsourcing is not viewed favorably.

Those who argue against outsourcing argue that outsourcing is reducing local jobs, especially in the manufacturing sector. According to those in favor of outsourcing, this has led to a free market economy, from which companies can easily mobilize resources in the required sectors.

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An organization hires an outsourcer for outsourcing only when the job is not permanent and the employee does not need to be listed in the organization at the end of the job. In order to reduce the cost, the companies hire workers by outsourcing.

What is the difference between freelancing and outsourcing?

Surely you already have enough idea about what outsourcing is. Let us know in detail about the difference between freelancing and outsourcing.

Theory

The word ‘freelancing’ comes from the words ‘free’ and ‘lance’. Traditionally ‘freelancing’ means to work freely or independently.

On the other hand, the word ‘outsourcing’ is a combination of the words ‘out’ and ‘source’. In other words, ‘outsourcing’ means to bring work from any external source.

Definition

Freelancing means working independently without strict rules. Outsourcing, on the other hand, means hiring a freelancer and hiring them for money.

Relationships

The freelancer works and at the end of the job receives his payment from an outside source. An outsourced client, on the other hand, pays the freelancer at the end of the day.

Activities

A freelancer works as an independent worker. A freelancer is not obliged to do any work according to the rules of time constraint. If he can submit the work within the deadline, he can work whenever he wants. At the end of the work he received his honor. If you do not work again, the freelancer will not get any money.

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On the other hand, an outsourced client hires the necessary manpower in his organization from outside without providing permanent employment to the employee in the organization. Outsourced clients can be a bridge between an organization and a freelancer. Many of these organizations provide freelancers for other organizations if needed.

Payment

A freelancer gets paid for his work. In other words, you will get exactly the same amount of money as the payment for the work before the work. A freelancer does not receive any monthly salary. Similarly, an outsourced client pays a freelancer in exchange for a job. In this case, the outsourced client does not pay any kind of regular salary to the freelancer .

Example

Suppose Mr. Akash is a graphic designer who specializes in logo design. Now he has been offered a job where he has to make a logo for an organization, for which he will receive 50. Now he can do the job if he wants and get the money. This is freelancing.

Suppose an organization needs a new logo. In this case, it would be costly for them to hire a separate employee just for logo design. So the company decided to design the logo through a skilled freelancer for a certain amount of money from outside. Here the issue of hiring freelancers from outside the organization is called outsourcing.

Advantage

The benefits of freelancing are:

  • You are not obliged to do anything against your will.In the case of freelancing, there is no restrictive rule that you have to work from 9 am to 5 pm or from 10 am to 6 pm like a job.
  • A freelancer can work whenever he wants.
  • A freelancer has no boss, he is his own boss.
  • In the case of freelancing, the decision of one’s own schedule is the freelancer’s own.
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What are the benefits of outsourcing ?

  • Necessary work can be done with less money and resources.
  • The freelancer hired for outsourcing does not have to take any big responsibility or freelancer has to give any kind of office space.

Difficulty

The disadvantages of this radical proposal are small

  • Getting paid for a job or getting paid for a job, these things are always in doubt when it comes to freelancing.
  • Freelancing doesn’t always work. Also, you may not get the kind of work you like to do.
  • There is no fixed income for freelancing. Maybe in one month you earned 1 lakh rupees, again it was seen that you could not earn 10 thousand rupees in the next month. Basically, the more work you get and do, the more your income will be.

What are the disadvantages of outsourcing ?

  • There is no guarantee that the work you need will be done. A freelancer can refuse a job for good reason.
  • In the case of outsourcing, the quality of work may not always be what you expect.
  • Outsourcing may take longer than usual to accomplish a task.

In other words, the staff hired for outsourcing is a freelancer. Again, the job he gets is basically the job of an organization which is given to him through outsourcing process.


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