A lot of businesses are caught in the dilemma of whether to stick to the traditional in-house workforce or shift to outsourced staff. Both have pros and cons. It is but a prudent act to weigh things out before considering a choice. Here is a definitive list of pros and cons of in-house hiring and outsourcing that will let you arrive at an informed decision.

The Pros of In-house Hiring


1.    Physically tenured employees are more secured. With the anticipation of regularisation, career path, incentives, and other perks, employees are more likely to feel secure. Moreover, since they get to interact with coworkers physically, they have a sense of belongingness. Thus, they are more likely to be emotionally-attached to the company.

2.    Information is more secured. Internal dissemination of information poses a lesser risk of information leakage. Although both in-house and outsourced employees can sign a non-compete contract, in-house employees are easier to be tracked of any untoward incident of intellectual property violation or information leakage. 

3.    Issues and situations are quickly addressed. In-house employees can readily be called upon whenever problems or challenges are encountered. 

4.    Physical presence creates more engaging ambience. In-person brainstorming and discussions create more impact to individuals because they can physically feel visible enthusiasm and drive.


The Cons of In-House Hiring


1.    Limited pool of talents. When new skills are required due to the outset of new projects or tasks, in-house talents are not normally equipped to adapt to the necessary know-how.

2.    Turnover of employees costs a lot. No matter how employees love the company, when they are presented with a better offer, they will leave. High turnover rate is a waste of company resources since it involves the tedious process of selecting, hiring, and training. Outsourcing eradicates the cost of turnover with the service our outsourcing companies. 

3.    Compulsory benefits are provided. Since most in-house staff are regular employees, they should be given their required benefits which is not so much required for freelancers.


The Pros of Outsourcing


1.    A diverse pool of talent is readily available. Freelancers have their specific expertise that can be instantly utilised. This eradicates the time and resources on training employees for specialised tasks.

2.    The instant hiring of global talents. Hire anyone from any country who is suitable to your specific needs and niche. 

3.    Outsourcing is best for project-based tasks. Hire workforce only according to the duration of your business’ need.

4.    Freelancers fee vary, and you can choose a freelancer that fits your budget. You can opt to pay a lower rate per hour that usually takes more time. Most higher-paying ones usually accomplish tasks in no time. Choose according to your budget or timeframe.


The Cons of Outsourcing


1.    Increased risk of communication gap. With different time zones or different schedules, catching up with freelancers can be quite challenging. The experts usually take the most time. 

2.    Information leakage or intellectual property risk is high. Since there is no physical overseeing of operations, outsourced individuals are more prone to leaking or stealing information. However, outsourced talents from outsourcing companies are not likely to do such because they were finely selected and aptly trained to online work ethics. 

3.    Exaggerated profiles can mislead employers. Although this is not widely prevalent, it is always wise to leave the scrutiny to the experts. Outsourcing companies do the nitty gritty task of ensuring that the staff they recommend will perfectly fit your required talent.

  • The Pros of In-house Hiring

  • The Pros of Outsourcing

  • The Cons of Outsourcing