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Old 10-25-2006, 02:48 PM
Virtu Office Virtu Office is offline
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Lightbulb Outsourcing to the US

Reading through the threads it seems as though the main benefit of outsourcing is being able to be more productive and save money. I do understand that concern. With any business you have to maintain a profit or you will fold. Having on site employees decreases your profitability. With having even one on site employee, costs can increase to 75% more than what actual wages are.

Let me explain. If an employee makes an $39,000 in a year (on a 40 hour work week), by the time benefits, payroll taxes, administrative costs (recruiting, hiring, training, record maintenance, severance pay..etc), equipment and supplies, bonuses, overtime, and additional rent of space, is all taken into consideration, the total annual cost for that one employee jumps to $69,500.

Getting back to outsourcing, I have a couple of comments to make; thus the thread title. Why not hire people that contract their work out in the US. Granted they cost more per hour, but they only bill for hours worked. A business then cuts out all down time costs, and all the other hassles mentioned in the paragraph above. The people that are able to handle the tasks associated with running the business are technically known as executive assistants. Here in the US we have people that do this out of their own offices and occur any costs of running that office. They are formally known as Virtual Assistants or a VA. The only item that the business, contracted to the Virtual Assistant, pays for are the actual hours it takes to complete the project. With using a Virtual Assistant, a business is able to take the same profits they would get from outsourcing outside of the US, and be more productive. Plus the money stays in the US to help the economy grow.
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