Sunday, April 26, 2009

Outsourcing Outrage : Why Most Resort To Freelance Jobs

It has been a puzzle among most internet entrepreneurs as to why most of the agents they hire from outsourcing companies online leave them after a few months of service despite the good dealings done.

What is the main cause of this ongoing problem?

There are a few factors to which these occasional problems may occur. If an agent works for a local outsourcing company in their area that comes with an office or a building that has to be leased, it is very much understood that there follows an overhead expense to keep up with the maintenance, hence, cutting down on several other costings such as convenience and tool manageability for the company to enable to keep their business on the go, leaving most of the agents bringing home a very small fee for the services rendered.

Of course, these people work in I.T. offices and gets to surf around online wherein the chance of finding a better opportunity is a myriad miles better especially coming from most legitimate companies that these agents get to encounter online. The promise of a better compensation which most agents working for these outsourcing companies have to put in consideration and later result to agents resorting to freelance jobs instead. Plus, the fact that they are getting a 300% increase from what they used to make under these companies, not to mention that they're getting a decent pay without going through the problem of having to deal with overly attentive administrative people who hardly even know what the business is all about (most that I know are hired for supervision and office work i.e. filing, overseers that later tends to be bossy because they are "admins"...skill-wise - NONE). So, what happens is that, what's supposed to be an established business, continuously hires people due to the number of resignations filed - and the company becomes a training platform alone(which most often are provided by clients themselves). Not to mention that most employers have been bothered with several intermittent connection reports when their employees are supposed to be working on a promised single dedicated internet connection and to later find out that these outsourcing companies have been sharing a supposed to be fast internet connection to several units thus delaying the workload.

But does the problem end there? Apparently not. What about those freelancers who tend to move on to an online sub-contractor site?

A lot of these freelancers who start out look for sub-contracting websites, but more often than usual, they would return to freelancing instead and market themselves online either via Craigslist due to the incomprehensible amount of fees that they make, when in fact 80% of the actual amount that clients pay for do not go to these poor agents, but rather to these subcontractors, which is quite confusing since these people do not have an overhead to keep up with other than a website(which you can purchase for $9.99 on Godaddy)and a few administrative people to takes care of the reports since most of these agents work from home and initially investing on their own electricity and maintenance. Major capitalization on OUTSOURCING LABOR without an OVERHEAD nor PRODUCT but rather SERVICES is a big NO NO... it is NOT ETHICAL to sub-contract a 200-400% fee and pay sub-contracted agents 20% of the actual fees made... patronizing such abuse not only steals from the sub-contracted agents but steals big time from clients they made a closed deal with... It would have been comprehensible if these sub-contractors are investing on products, but logically, these people are investing on labor and intellectual property; to which is why I give credit to sites like Odesk or Elance to name a few for simply charging a sensible amount of monthly fee for users to enable to make use of their services in finding the right employer.

The worst part among this outsourcing outrage is that, most freelancers are getting a bad reputation due to these companies stating that "there are no assurance as to if your freelance agent is working or not since they aren't supervised" and with them, the assurance of supervision is highly observed.

Personally, I should say that you will only know that, once you are not generating the traffic that you are expecting regardless whether they are supervised or not... After all, "TRUST" is the only investment freelancers can hold on to in this kind of business... and I do not think that there's any sane freelancers out there who would put their integrity into jeopardy in exchange of the tormenting days that they have gone through these outsourcing agencies and sub-contractors.


  1. This is one of the reason why I prefer hiring a freelance agent for my business... sub-contractors can be annoying at most times with questionable fees...

  2. Cost and hours to do the job should be discussed before the job. If the job takes longer, then you should call the client and communicate that to them. If you are also working on other jobs, you need to let the client know when you will be starting on their job. Make sure all hours are written down, when you start, take a break, finish. If you don't leave the client hanging, they will feel more comfortable with your reliability. I've never had any complaints with my hours worked. I also must be paid through PayPal for the hours we have agreed upon. This will cover the client not paying you for services rendered.

  3. When you plan to try offshore leased staffing, you need to be sure that the company where you tend to lease staffs is dependable and has a quality HR recruiter to provide you a competent personnel with expertise and good attitude towards work. Communication and strategy on how you manage your business and you staffs are essential for the growth.

  4. A Virtual Assistant is very in demand business today. It helps a lot in online business services and it's more cheaper.

  5. This is great post.. This is the correct place to tell about our services..Outsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees. We are into this outsourcing business for the past 7 years with approved 1350 plus LIVE sites from our development centre for our clients all over the world. We challenge, every 1 of 2 outsourcing clients will return back to us for more business with more gain. We have 125 developers who have constantly worked and having 7 years experience in the field of Joomla, drupal,wordpress and Ma

  6. Thank you for sharing...i really good to see this post.nice article.


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