Use Independent Contractors and Boost our Economy

Throughout the world, the economic meltdown has been the cause of much turbulence. Millions of men and women across the globe are finding it harder than ever to put food on the table. Many businesses are trying to help the situation by expanding their horizons towards new services in order to create more jobs.

A way for companies to minimize costs and create employment is to hire independent contractors. Essentially an independent contractor is an employee who is paid by the company. However, the work that the contractor completes is a separate service then what the company actually performs.

This employee can save companies money because his salary is tax deductible. If a company were to hire multiple independent contractors, their salaries would all be tax deductible, which would all lead to major savings. The clear downside, however, to using independent contractors is that they are not bound to working for one company; they may work for whomever they choose.

Most companies do what we call business process outsourcing, where they bring in a group of independent contractors to perform services for them. For instance an accounting company might hire Pitney Bowes for office services and they will outsource directly from the accounting office.

Another such example would be Dell computers deciding to have an offshore business process outsourcing group taking customer service phone calls and the like. This kind of outsourcing is even more cost efficient because wages overseas are often much less than the US.

Companies often hire offshore business processing outsourcers because of this incredible fact of paying less for the equivalent services and capabilities. These outsources are absolutely capable of helping Americans understand their computer problems and fixing them from thousands of miles across many oceans.

The downside to offshore outsourcing, of course, is that such jobs could have been provided to American outsourcers and would help get the economy back in motion. Until both American and offshore outsourcers are hired together, businesses will remain at a standstill. This is necessary because even these businesses who feel that they are saving are, in the long run, losing because people and companies will not be able to afford their services.

Outsourcing is an important help for the economic crisis, but companies must first make sure that native workers are hired as well in order to promote the continuation of the flow of the economy.

Casey Woodman-Stolls is a professional outsourcer and specialist for numerous firms. To learn more about business process outsourcing view the CDCGS website online. Casey is an SEO specialist working with SEO services group ClickResponse.