Monday, September 6, 2010

Benefits of Home Sourcing

Home sourcing, in basic terms, it is outsourcing to people's homes. Many businesses - chiefly, call centers - are jumping on the home sourcing bandwagon to cut costs and reap many other benefits. Home sourcing is a win-win prospect, as these positions allow workers to obtain stable employment while enjoying the advantages of working at home. As stated, both employers and employees can benefit from home sourcing positions. Employers are well aware that many customers and clients prefer to speak with someone whom they can easily understand and vice versa. Outsourcing overseas can result in language and dialect barriers that leave callers frustrated and unhappy. Home sourcing is a solution for this problem that pleases customers while keeping overhead costs lower for the companies they are calling. Employers may even be able to benefit from special tax credits by home sourcing jobs. Many home sourcing employers hire representatives on a contract basis, which cuts the costs of benefits such as health insurance and paid time off.

Since employees enjoy the plusses of telecommuting, such as saving money on gas and no stressful commute, they can pay a lower wage than they would to full-time, on-site staff. Don't write home sourcing jobs off as not worth your time, though. These jobs are still subject to minimum wage laws and most pay substantially more than that. In addition, read Benefits of Working from Home and Environmental and Cost Benefits of Telecommuting to Work to learn more about how you might benefit from a home sourcing position.

Outsourcing has become more attractive in recent years due to improved technology and wage arbitrage opportunities. Expanded broadband access, improved call-routing networks, and cheaper computer technology have allowed outsourcing to accelerate. Wage arbitrage opportunities, buying labor where it is relatively inexpensive, have arisen in industrialized countries with significant labor costs. An American computer programmer is paid between $75-$100 an hour while a similarly skilled Indian programmer is paid only $20 an hour. The same developments that have encouraged outsourcing have also benefited the growth of home sourcing. Improvements in technology can just as easily move work to a call center in Bangalore as to an employee’s home in Salt Lake City. Similarly, the sorts of wage differences that allow labor arbitrage between countries exist within the U.S. as well. U.S. computer programmers in metro areas earn between $75-$100 an hour while similarly skilled programmers in rural areas earn only $35-$40 an hour.




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