Startups always start with meagre funds available at their Disposal and in the beginning, they cannot afford to hire experienced professionals on the comparatively higher wages given their budget capacity as per their well crafted Business Plan. The newly hired staff requires extensive training, Awareness of your Company’s Code and Conduct , HR Policies, Terms and Conditions .

Even for drafting Company laws , Policies , Startups do need an Experienced Human Resource Manager for All Payroll and Recruitment Needs but in beginning , it is advised that Small Business Owners must engage with outsourcing Companies since the Qualified concerned Staff is always available with the Outsourcing Companies. Furthermore, an IT related Startup can also engage in Offshore Staffing or Outsourcing to utilize the Talent regardless of the country or Origin . Internet has enabled millions of Small Business Companies to benefit from the professional talent available across the globe through powerful Project Management tools and software as if these people were working in the company’s premises. The following Five reason will clarify that why startups should prefer outsourcing than hiring Full time Staff when the Small business company is going through early days after its successful launch .

1.Huge Pool Professionals : The Outsourcing Company can provide you the huge Professionals from diverse locations with highly demanded Skills which could only have been utilized on higher wages ,had these caliber people been hired on permanent basis . Even Off-shoring the talent will have multinational engagement where you could utilize the Skills of Professionals residing in any part of the World. But outsourcing the talents from low-cost countries will be very fruitful for You .

2.Cost Effective : The outsourcing is very cost-effective as it saves you time and budget for huge process of advertising , shortlisting , test /interviews and hiring . This would be the longest and most difficult process to be taken by Young Entrepreneurs working as Chief Executive Officers . The outsourcing makes it easy to demand the talent which is needed on very lower rates compared to higher rates of Full time Regular employees . The Outsourced employees also save your additional costs such medical care , Taxes , insurance and on job training costs as you only pay a lump sum amount to the company which has provided you the employees on outsourced basis for short time which may range from Few months to three years depending on your interest and the level of services rendered by the outsourced staff

3.Available ,Ready & Prepared : The outsourced employees are ready to work since these people are already trained by the company which is offering outsourcing company . They will provide with the people who are required to complete the tasks assigned . Even , outsourcing companies will offer you a fully functional contact center branded from your to work under your sales department. The companies like Regus also provide you with ready-made offices on outsourced basis in several countries . All you have to do is to sit and start work . The time has changed when all set up was done by Entrepreneurs themselves . Nowadays , Startups can be started within days not to speak of Months or years .

 4.Less Legal Formalities : Outsourcing process required lesser legal requirements as compared to Full time Employees such as Medical , Retirement , Bonuses ,Salary Increment , Insurance Costs , Accidental covers . Outsourcing company will only be responsible for the terms and conditions of outsourced employee under Memorandum of Understanding (MoU) or Contract document which may be regarding replacement of any outsourced staff , Salary Payments in lump sum to the company where the company transfers the agreed amount to its bank account on monthly basis .

 5.Remote Work : The IT related Startups can utilize the services of talent virtually through the power internet . Thousands Freelance Programmer , Designers , Freelancers ,Consultants are working for various companies of the world remotely popularly called Freelancers or Home based workers . They complete the tasks on Flexible time frames and contribute to the Growth of Startups and transforming the growth into giant companies . Freelance Marketplaces such , Odesk .com , , , and etc have thousands of Freelancers which are ready to work on the Smaller as well as bigger It related and Content related tasks .

Startups can prefer outsourcing since outsourced staff is readily available and your pending tasks can easily completed as Hiring is long process and it may take from weeks to months to sift or filter the Top notch talent and hire as per the companies’ HR policies . It is also not always sure that whether the talent which is hunted by HR unit will join after getting an offer letter given the company’s HR policy ,Salary Benefits , Insurance or other Perks as demanded by the highly Experienced Staff globally . Whereas , outsourcing or Off-shoring only need a contract engagement with the company offering such services and off-shoring will also enable your to hire the talent from Low cost countries ( with Reference to US Dollar) such as India , China , Bangladesh , Pakistan ,Philippine etc. You can pay wages ranging from $300 Dollars to $20000 Dollars compared to higher wages in US ranging from $30000 to $40000 Dollars for the IT Professionals .