In-House Hiring Vs ODC

In today’s modern world, where businesses are scaling-up fast by working with talented teams globally, the traditional in-house hiring is becoming irrelevant. Especially for SEO Agencies, whose success depends entirely on the quality and creativitiy of the people working for their cliens.

Especially keeping in mind the pace at which technology is breaking the geographical boundaries to work with the best talent, the limitations of hiring a in-house are becoming even bolder.

In this article, I would like to address a few key differences between hiring an in-house team vs setting up an offshore delivery team.

1. Finding right talent, locally

When it comes to hiring, one thing you do not want to limit yourself is the availability of talent.

While hiring in-house, unfortunately our choices are always limited with the talent available locally in our city. The maximum we can get is people who are ready to relocate. But relocation is always a big deal, considering a huge impact on the entire family setup is disturbed while moving from one place to another.

But, when you setup an offshore delivery team, you have a pool of talented people available to choose from. Having an ODC setup in the right location, where you can have an access to several educational institutes and industries likes yours, gives a huge pool of talent for your work.

2. Pain of the Hiring Process

No matter how fast we want to deploy our new team members for the upcoming promising clients, the process of hiring is always too slow. From preparing the job descriptions to posting the jobs, and from screening the resumes to taking interviews, hiring is a daunting task when done in-house.

Thankfully, with ODC, the process never stops. The HR team at the ODC is always on talent-hunt, even when you do not need one. Not only they take up the pain of running whole process, they reduce 90% of your work and keep talent pool ready to hire on-demand.

3. High Costs of Hiring

Accordingly to a LinkedIn Survey, the average hiring agency charges between 15% – 25% on a candidate’s annual CTC to the company. The average is 19% . This means, for every in-house talent you hire, you pay 2+ months salary as fees additionally to the hiring agency.

In an ODC setup, hiring is included by default as a service in your arrangements, and you do not have to pay any additional costs for hiring a candidate.

4. Costs of Employee Benefits

Other big costs that are attached with the in-house hiring are the cost of employee benefits and mandatory compliance.

Thanks to our laws of the land, employee benefits, medical, insurance, social service and 401K schemes, the cost of all these is 35% of the total CTC of a candidate. In other words, we spend an amount equal to 4 months salary of the person, in the compliance, every year. (That is $35K/yr per person with a $100K/yr package)

In an ODC setup, the people are hired with the ODC and the ODC management takes care of the employee benefits and compliance as per the laws of land, so you don’t have to worry about it.

5. Infrastructure Costs

Not to mention the high rates of office rents – may it be in the Silicon Valley or in Florida, infrastructure costs more than 20% of the business costs. A top-notch person cannot perform top notch without computer systems and other facilities with the same quality. Maintaining these systems become another big overhead and distraction from your core focus of the business.

In an ODC setup, the infrastructure building and maintenance is already covered in the service fees, which means you have no additional (and surprise) costs of infrastructure, office space, computer systems, internet, and power backups. You focus on your work, while saving time and energy required for office management.

6. People Management

“The best thing about hiring A-Class people is that they bring with them only A Class┬ápeople. And together they build a great culture”

~ Steve Jobs, Apple.

I always admire the way Steve Jobs put it in simple words.
Managing people is an art and science both, and it is a daunting task that involves huge energy, every day.

While having your team at your side can be convenient sometime, most of the time its too much work to manage the people, their expectations and resolve issues that may drain your energy, and steal your focus from core work.

In an ODC setup, a professional team is always available to ensure that people are happy at what they do, and with whom they do it. The best part is, that the management does not have to worry about their work as it’s managed by you, and thus they can focus on creating a workplace where everyone can thrive.

This means higher productivity with minimal involvement by you.

7. Flexibility to Scale-up fast

Remember, the last time you had a big client account coming in, and …. you took a pause to think yourself – “um… can I really risk this much? Can I get the people on time before the work starts?”

Thankfully, with an ODC, your risks of scaling your operations always minimum, as the resources are made available by the ODC on demand. This means you get great flexibility at scaling up or down your teams on very short notice.

Conclusion

Considering the practical difficulties and costs involved in hiring an in-house team, hiring a talented team in an ODC setup is a much convenient, economic and viable option for any business that wants to remain relevant and competitive in today’s modern economy.

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