Why Outsourcing is Cheaper?

November 28, 2022
Reading Time: 3 minutes
The cost to outsource is cheaper than hiring an in-house employee. Why is it cheaper to outsource? Continue reading to find out.

Outsourcing vs. Hiring an in-house

Outsourcing is the process of hiring professionals to provide a service that isn’t readily available within the skillset of the companies in-house employees. In-house employees are normally undertaken to do tasks that require a specific skillset to do the job required. Both outsourced professionals and In-house professionals can deliver the same level of service quality but outsourcing becomes a more cost-effective option because of the leg work and usual fees that come along from hiring in-house personnel. To simplify this, consider the table below, which compares the costs of in-house and outsourced operations.
Employees, whether hired for in-house or virtually outsourced service, are the most important asset, which is why hiring an employee is costly. As a business owner, you want to make sure that you are paying for something worth your time and effort.

Top Reasons Why Outsourcing is Cheaper

1. Outsourcing eliminates recruitment/training costs

Outsourcing eliminates the need to spend money on job advertisements/listings and career fairs. Aside from not having to train newly hired employees, outsourcing allows you to select from a pool of highly skilled candidates who are ready to begin working for you at any time.

In some cases, a company will look for a candidate who has specific qualifications. All that remains is for you to attend the virtual interview and select the candidate whom you believe will best meet your needs.

2. Reduces your operational cost

When you outsource, you don’t have to provide a working space, furniture, computers, and other office supplies, or pay for a software subscription. The outsourced employee will already have his/her own equipment or will be provided by the outsourcing company on your behalf.

3. Lower Payroll Cost

Outsourcing costs are marginally cheaper because of the set-up and location of the employees. When compared to the cost of hiring in-house in the United States, the cost of outsourcing in developing countries such as the Philippines is significantly lower due to the country’s lower labor cost Asides that, payroll cost is cut-down because you won’t have to pay for other costs, such as taxes, mandated benefits, local employment fees, etc.

Here are some of the commonly outsourced jobs in the Philippines and their associated costs.

Note: This is only the average salary range per month. Exact pay will depend on the candidate’s skills and years of experience


As you can see, outsourcing is only half the cost of hiring an in-house employee. It is not only the lesser cost that drives businesses and startups to outsource; it also provides them with:

How To Find The Right Executive Assistant For You?

Once you’ve decided to outsource an executive assistant, the next thing in mind is how to find one. To find the right assistant that will fit you and your business needs, important things to consider are their personality and skillset. Here’s why:


  • Access to a large pool of talents that are not locally available

  • Immediate support when needed (via the outsourcing company)

  • Increase in business output

  • Ensures faster project turnaround time

  • Allows them to concentrate more on their core business

Outsourcing is a business solution that helps the company achieve its business goals in an efficient way and at a lesser cost. When a company outsources its business activities, it will allow them to concentrate more on its core business.


Ready to Outsource?

Have the right team at your disposal. Find the talent you need in our Client Portal!

If you want more information on the pricing structure and how outsourcing can save you money, you can reach out to us at marketing@032outsourcing.com


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