How Outsourced Staffing is Changing The Future of Global Workforces

By Cam Velasco

CEO & Co-Founder
Published: Mar 27, 2024
Outsourced staffing is revolutionizing global workforces by offering solutions to talent shortages, cost challenges, and the need for flexibility. In this article we'll dive into the transformative power of outsourced staffing and how you can leverage it for scaling your business.
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Outsourced staffing is revolutionizing global workforces by offering solutions to talent shortages, cost challenges, and the need for flexibility. Here’s a quick glance at the transformative power of outsourced staffing:

  • Access to specialized skills worldwide: Quickly assemble teams for projects like digital marketing, content creation, and more.
  • Cost efficiency: Save 30-50% by hiring globally compared to local hires.
  • Workforce agility: Easily adjust team size for various projects, incorporating both in-house and outsourced staff.

This approach not only helps businesses overcome the hurdle of finding skilled personnel and managing expenses but also paves the way for a more adaptive and innovative future in the global job market.

Historical Context

Companies have been sending jobs overseas for a long time to save money and find skilled workers. At first, they moved simple jobs like manufacturing and call centers to places where it was cheaper to hire people. But as time went on, they started working more closely with these overseas partners, not just to save money but to get better at what they do, especially in areas like IT, finance, HR, and marketing.

Thanks to technology, it’s easier than ever to work with people all over the world. Outsourcing has changed to include short-term jobs and long-term partnerships, focusing more on working well together and being flexible. The COVID-19 pandemic made remote work even more common, speeding up these changes.

In short, outsourcing has grown from just sending simple jobs overseas to building strong partnerships that help companies do better.

Current Landscape and Trends

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Outsourced staffing is growing fast in many areas. A report by Statista shows the global outsourcing market increased by over 8% from 2020 to 2021, reaching $437 billion. This shows that even when times are tough, there’s still a big demand for outsourcing.

In marketing, more than 70% of companies use workers from other countries, and another 23% plan to start doing so in 2023. The main reasons for this include:

  • Talent shortages: Many companies can’t find enough skilled workers, especially in tech. Outsourcing helps them find more people.
  • Specialization: Marketing needs people who are good at very specific things. Companies are looking for experts in these areas.
  • Cost and efficiency: Mixing local and overseas workers can cut costs by up to 30% and keep things running all the time.

Overall, outsourcing is becoming a key way for companies to be more flexible, fill in skill gaps, and stay competitive. It’s an important part of the future of work.

The Problem: Talent and Cost Challenges

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The War for Talent

Right now, a lot of companies can’t find the skilled people they need, and it’s becoming a big problem. Here’s why:

  • New technology means companies need people with up-to-date tech skills.
  • Older workers are retiring, leaving gaps.
  • There aren’t enough new graduates with the right skills.
  • Sometimes, the jobs are in one place, but the skilled people are somewhere else.

Marketing jobs are really feeling this squeeze. A report from LinkedIn says marketing skills are super in demand. Companies are finding it tough to hire people who know how to handle digital marketing, social media, and analyzing data.

This shortage means:

  • 63% of businesses say they can’t develop new products without the right people.
  • 57% are making less money because they can’t fill marketing roles.
  • Half have had to put off growing their business while they look for the right employees.

For companies wanting to grow quickly, not being able to find the right marketing people is a big roadblock. Working with companies that find employees from other countries can help get skilled people faster and for less money.

The High Cost of Human Resources

Spending on human resources (HR) – the department that hires and manages employees – is going up a lot. It now takes more than 10% of a company’s money, which is 3% more than it used to.

Here’s why HR is getting more expensive:

  • Companies need to pay more to get skilled workers.
  • Offering good benefits to attract employees costs a lot.
  • Managing hiring and employee stuff takes a lot of work and money.

For marketing departments, these rising costs mean they have less money for other things. And with the struggle to find good people, it’s even harder to grow.

Hiring people from other countries can help save money because:

  • You can pay them less than local employees.
  • It’s easier and cheaper to hire and manage them.
  • You can use the saved money for more marketing projects.

Working with companies that help you hire from places like Latin America can be a good way to find skilled marketing people without spending a lot. This helps companies do more with their money and keep growing.

The Solution: Outsourced Staffing

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Outsourced staffing helps businesses get the skilled people they need without spending too much. Thanks to the internet and technology, companies can now work with people from all over the world who are good at what they do.

Global Talent Platforms

Websites like Floowi make it easy for businesses to find people with the right skills from anywhere. This means companies can quickly get together teams to work on things like:

  • Creating online ads and social media posts
  • Designing logos and making content
  • Planning and improving online ads

Outsourced staffing companies also take care of hiring, getting new employees started, paying them, and more. This lets the regular employees focus on the main goals of the business instead of spending time on hiring.

Improved Cost Efficiency

Hiring people from other places usually costs 30-50% less than hiring locally. This saves money that can be used for other important things.

Outsourced workers often get paid for the work they do, not just the hours they work. Because they’re experts, they can do their jobs quickly and well, especially for specific marketing projects.

The Flexible Workforce

Having both regular and temporary outsourced workers lets businesses change their team size based on what they need at the time. This way, companies can hire experts for short or long projects without worrying about the cost of hiring and firing.

As work changes, outsourced staffing will keep helping businesses be more flexible and creative by using teams from around the world.

Case Studies

Here are a couple of real-life stories about big companies using outsourced staffing to get ahead:

Google Cloud

Google Cloud

Google Cloud works with companies like Andela to find expert engineers from around the world. This helps them:

  • Grow quickly: They can put together teams fast for new projects. This means they can make new things faster.
  • Save money: Hiring from other countries costs a lot less, up to 40% cheaper. This saved money goes back into making even cooler stuff.
  • Understand different customers: Engineers from different places bring new ideas because they know what people like in their own countries.

For Google Cloud, using people from all over the world makes it easier and faster to come up with new cloud services.

Spotify

Spotify

Spotify hires people from outside for many jobs, from understanding data to planning marketing. This helps them:

  • Change quickly: They can get the right people for new projects without waiting too long.
  • Find experts: They look worldwide to find the best people for specific jobs like data science.
  • Work all the time: By having teams in different time zones, they can keep things moving 24/7.

For Spotify, hiring from around the world makes them more flexible and helps them stay ahead in the music streaming business.

In short, big names are using talent from everywhere to work faster, save money, and be more creative. These stories show how important it is for companies to be able to hire the best people, no matter where they are.

The Future of Global Workforces

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Technological Advancements

Technology is getting better and helping outsourced staffing grow. Here’s how:

  • Better video calls and teamwork tools make it easy to work with people from different parts of the world. Tools like Zoom and Slack help everyone stay connected.
  • Smart hiring tools use AI to quickly find and check if people are right for the job, no matter where they are. This makes hiring faster.
  • Automating HR jobs like handling pay and following rules means companies can spend more time on important stuff.

These tech improvements mean companies can easily work with talented people from anywhere. Outsourced staffing companies use this tech to help businesses find skilled workers when they need them.

Evolving Workforce Preferences

What people want from their jobs is changing, especially for younger workers. They like things that fit well with outsourced staffing, such as:

  • Flexible schedules: People want to work in ways that suit their lives. Outsourced staffing offers many choices like part-time or remote work.
  • Global mobility: A lot of workers want the chance to travel or live in different places while working. Outsourced staffing makes this possible.
  • Passion projects: Younger workers often prefer jobs that match their interests. Outsourced jobs let them work on projects they care about.

These changes mean more people are looking for the kind of work outsourced staffing offers. Companies using these services can find new talents more easily.

Challenges and Mitigation Strategies

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Outsourced staffing is great for businesses, but it can have some problems. Here’s how companies can handle these issues to work well with people from different parts of the world.

Communication and Collaboration

When your team is spread across the globe, talking to each other can be hard. Here’s what you can do:

  • Use chat apps like Slack or Microsoft Teams for quick messages.
  • Try to have some work hours that overlap so you can have meetings.
  • Have regular video calls to stay on the same page and see each other.
  • Send updates by email every day or week so everyone knows what’s going on.
  • Keep notes of your talks in a place online where everyone can see them.

Getting to know your global team members can make working together much easier.

Performance Evaluation and Quality Control

To make sure your offshore team is doing a great job:

  • Be clear about what you expect, how you’ll check their work, and what quality means from the start.
  • Look at their work regularly to make sure it’s good.
  • Ask for updates on how things are going every week or month.
  • Use surveys and one-on-one talks to find and fix problems early.

By keeping an eye on how things are going and talking about any issues quickly, your outsourced team can keep doing great work.

Conclusion

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Outsourced staffing is now a big help for companies to find the right people with special skills, work more efficiently, and quickly adjust their team size when needed. This way of hiring, especially for marketing jobs, helps businesses deal with the tough job of finding skilled people and managing costs.

Key Benefits

Here are the main good things about using outsourced staffing:

  • Access to specialized skills: Companies can quickly put together teams for specific projects, like online advertising or designing, by finding people from around the world who are really good at these things.
  • Cost efficiency: Hiring people from other countries can be cheaper by 30-50% compared to hiring locally. This means companies can save money and use it for other important stuff.
  • Workforce agility: Mixing in-house staff with people hired for specific tasks makes it easier for companies to change their team size as needed. This is great for handling different projects without extra hassle.
Looking Ahead

As technology gets better, working with people from different places will become even smoother. Also, smart tools that help find the best people for the job will make it easier to hire from anywhere.

Outsourced staffing will likely become a normal part of how companies build their teams. Those who use this approach will be better at starting new things and keeping up with changes.

In short, outsourced staffing is really changing how companies put together their marketing teams. It lets them use the world’s talent to grow and come up with new ideas.

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Cam Velasco

CEO & Co-Founder

Unlock your marketing potential with Floowi

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