About Manpower Outsourcing – An Essential Will Need Merits And Demerits Of Manpower Outsourcing

Today several Indian and overseas organizations take realized the significance of manpower outsourcing. Manpower outsourcing is required when a firm should complete a job where they do not wish to hire new employees. Outsourcing is just one of the most effective ways to save money.

The Idea of Manpower Outsourcing

In business, an outside firm or company carries on management or development of a product on behalf of another firm. The concept began when firms were loath to hire new employees for short-term jobs. Manpower outsourcing answered this problem, as in this instance the principal company does not hire the employee directly. The external companies who provide skilled workers are called manpower-outsourcing companies. Deficiency of skilled employees is another situation when manpower outsourcing is required. Many IT firms, occasionally, require people well- trained in a certain technology, which they may not, otherwise, have in their source pool. In these instances, they could hire skilled experts also known as advisers to complete their jobs.

Manpower Outsourcing Procedure

Once a company decides upon outsourcing, they search for a suitable provider and ask for Request for Proposal (RFP). Sometimes RFPs from multiple vendors are asked. In RFP, sellers cover the procedure which they will follow to complete the project, current financial position of the business, the technical capacity of its workers, and each of the information, which may help win over the confidence of the company. The two parties finalize the contract and sign it. Next step is the transition of knowledge and data from the source company to the company providing manpower. Delivery schedule is determined for the shipping of the product. When the project is finished, the source business may opt to terminate the contractor can renew the contract.

Why Outsource

Some of the advantages of outsourcing are all listed below:

First and by far the most important facet is the cost reduction of the evolution of the overall project.

Hiring manpower from an outsource firm who has great and educated skilled professionals within the area, can improve the quality of the item.

Reducing pressure on the HR department of hiring and keeping skilled professionals.

Companies can place more emphasis on research and designing of a product rather than putting effort into meeting deadlines.

Demerits together with benefits people also observe some demerits of outsourcing. Some of the downsides of outsourcing are:

Manpower outsourcing will affect workers or employees of the provider. Sometimes companies cut jobs in their companies and outsource the job to another party.
Most often| Most frequently outsourcing firms are unable to satisfy the standards and timeliness.
There are also concerns related to fraud and safety, as there’s always a possibility of identity theft or misuse of sensitive and painful information.


Businesses today compete to sustain their clients and yet provide excellent support. The only way that they can survive is by simply reducing their running cost. It’s one of the best and more efficient strategies to decrease the price of the creation of a job.