• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

Home » Articles » Reduce labor costs with Emapta’s outsourcing solutions

Reduce labor costs with Emapta’s outsourcing solutions

Time changes things. You can probably learn from your elders that running a business in the old days didn’t cost this much. 

Today, finding ways to reduce labor costs while maintaining operational efficiency is a strategic imperative. As the global economy becomes increasingly interconnected, one solution has risen to prominence – outsourcing. 

Delegating specific tasks or functions to external service providers offers companies significant cost savings without sacrificing quality. Outsourcing covers multiple industries as well, from creative design to IT services

Leading outsourcing providers like Emapta offer a range of outsourcing solutions catered to the global market. 

This article compares in-house hiring with outsourcing and how Emapta’s style can aid you as you reduce labor costs.  

In-house or outsourcing? 

The choice to build an in-house team or outsource can often lead many companies to a crossroads. It’s best to consider the pros and cons of each approach. 

Get 3 free quotes 2,300+ BPO SUPPLIERS

Cost efficiency 

Hiring in-house is not the way to go if you aim to reduce labor costs. It involves expenses like salaries, benefits, training, and office space. These costs can be substantial and less predictable over time. 

Outsourcing typically offers a more cost-efficient solution. You can find professionals in regions with lower wage standards, allowing you to reduce labor costs. 

Scalability and flexibility 

Scaling your workforce up or down can be cumbersome, and hiring and training new employees or downsizing can take time and resources.

Outsourcing offers unparalleled scalability and flexibility. You can quickly adjust your workforce to meet fluctuating workloads without the overhead of in-house recruitment and training.

Scalability and flexibility 
In-house or outsourcing? 

Quality and control

You have direct control over internal employees, facilitating communication and oversight. However, maintaining consistent quality can be challenging without the necessary expertise.

While you may have less direct control, reputable outsourcing partners adhere to strict quality standards. Clear communication channels and regular updates ensure that you remain informed and in control of your projects.

Security and confidentiality 

With in-house staff, you have more control over data security and confidentiality, but the risk of internal breaches remains.

Get the complete toolkit, free

Reputable outsourcing firms prioritize security and confidentiality. They often have robust security measures, including data encryption and access controls.

Time to market

Building your own team may take time, delaying project initiation and time-sensitive product launches.

Outsourcing allows you to quickly onboard skilled professionals, reducing time to market and increasing your competitive edge.

Neither of these approaches is a one-size-fits-all approach. It depends on your business’s needs, goals, and resources. 

In fact, many successful businesses often find a strategic balance between the two approaches. They retain in-house talent for core functions while outsourcing the non-core tasks. 

Recruiting for an internal team is the traditional choice, but if you’re still on the fence regarding whether outsourcing can reduce labor costs, consider this illustration.

Comparing labor costs then and now

To give you a clear picture, here’s a contrast between the wages of an IT specialist in the past and present.

The landscape of labor costs in the IT industry has undergone a seismic shift over the past few years, challenging businesses to adapt and rethink their hiring strategies. 

Labor costs in 2018

The IT job market five years ago was notably different. Talented professionals were already in high demand, and this was reflected in their compensation packages. 

Salaries were competitive, and companies often provided attractive benefits to retain top talent. 

Consider a mid-level IT professional; let’s call him Eddie. 

With only a few years of developer experience, Eddie could earn an average of $86,750 – $146,000. This number would reach even higher (from $170,000 to over $199,000) if he specialized more in applications and mobile, for example. 

If you hired Eddie in-house, you must factor in benefits like health insurance, retirement contributions, and bonuses. With an estimated $21,726 per employee, this totals a lot of money for annual labor costs. 

Labor costs in 2023

Fast forward to today, and several factors have changed the landscape: 

  • Rising labor costs – IT salaries have surged, often outpacing inflation. A mid-level developer like Eddie may now demand $97,600 – $155,000.  
  • Benefits and perks – Competition has also led to more generous benefits, an average of $11.86/hour. 
  • Remote work – The shift to remote work has also introduced new considerations, like compensation for IT professionals working at home. 

These rising labor costs present both opportunities and challenges. Investing in top-notch IT talent is more crucial than ever, but the higher expenses can strain budgets, especially for smaller enterprises.

Labor costs in 2023
Comparing labor costs then and now

How partnering with Emapta helps reduce labor costs

Outsourcing emerges as a compelling solution to reduce labor costs. It offers several opportunities to save while still keeping quality standards.

Outsourcing has the following advantages to help you reduce labor costs:

  • Lower wage rates in offshore locations
  • No need for employee benefits 
  • Elimination of training costs 
  • Reduced overhead costs

Need a trusted outsourcing firm? Emapta’s got you covered. 

Access lower-cost resources while reaching premium talent. Emapta opens a deep and rich pool of skilled teams to keep your performance at your peak and reduce labor costs. 

Build an offshore team with Emapta today.

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 3,900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image