To keep designers and programmers on-site, salary is only about half the expense.

Employer Overhead Details

• The Basic Wage

  • This is the easy part.

• Employer SSN Contribution

  • The home office worker pays this himself as self employment tax.

• Health Care

  • The more valuable the worker is ( greater experience in the field, and people peak intellectually at middle age) the more expensive the premium - and small business pays far more than big business per employee.

• Computers, Maintenance, Software and Updates

  • Designers, especially, need high-end computers and thousands of dollars worth of software.
• Floor space in an office facility
  
  

• Benefits Packages

  • "Without the large numbers of employees required to negotiate favorable insurance deals and affordable financial services, small firms can't compete head-to-head with large companies for benefits."

• Liability Insurance and Workman's Comp

  
  
  
• Employer unemployment insurance contribution
  • Unless an employee commits an on site murder, better not fire him!
    
    
• Paid Leave
  • "Most sick leave policies foster a 'use it or lose it' mind-set, and employees feel entitled to a certain number of sick days."
• Absenteeism
  • This costs employers millions per year and can often be caused by unfavorable conditions in the office environment.

REGULATION:

OSHA!

Certain fields are more suited to outsourcing than others

- and the internet is one of the best. You can see results from the contractee's location as easily as from your own.

• You, or your project manager can monitor off-site designers and programmers daily or moment to moment with the same amount of effort.
  
  
• In on-site design houses staffers are discouraged from leaving their cubicles to converse with a project manager.  Even though thet are in the same officecomplex they communicated by phone or email and their work is viewed on the manager's monitor.  They should be off-site, saving the employer thousands.
  

With outsourcing, there is no wasted time - You pay only for the time the developers actually need to complete your project.

• EXAMPLE_Farming : A tractor sits idle in your barn (not consuming) until needed to plow a field or pull a harvester. A mule must be fed and maintained year round - need him or not.
  

Outsourcing reduces the time it takes to get things done.

Tasks are divided up between people who are experienced with the particular task requested of them.

• It also reduces the work day for the contractees by eliminating travel time.
  

Outsourcing provides your company with a full staff...

....of part time "employees" each highly trained, and doing only what they do best - and only as long as it takes to do it. This produces superior results as well as savings.