5 Ways of Freelancing & Outsourcing to Reduce Negative Impacts of Unemployment

The crisis in global economy affects every country negatively. Economic recession increases the number of job loss. As a result, unemployment has increased, and it’s now in an alarming stage. It brings endless issues for the countries and needs an immediate solution. Now, running a business in an economically unstable environment is risky. For example, buying power of the consumers will be low. You won’t be able to gain a competitive advantage in such situation. The only way in which unemployment can be defeated, is outsourcing. Other countries will hire freelancers from the country, which is affected by recession. So, it will increase job opportunity, which again effective to fight back unemployment. Through outsourcing, it is possible to provide service or good to another company. The entire business process depends on the suppliers. Let us discuss the processes through which freelancing and outsourcing could reduce negative impacts of unemployment.

Freelancing and Unemployment

Freelancing is a type of job in which an individual can directly provide service to the clients. In this kind of working culture, you don’t need to have a registered business. Moreover, freelancers are free to work whenever and wherever they want. Now the question is, what exactly is the meaning of unemployment and what are the consequences of this. During the recession session, many organizations have implemented different cost-cutting strategies. This has increased job loss in various countries remarkably. In 2012, the international labor organization has reported that more than 200 million people were unemployed due to high inflation. Here, the role of freelancing is unavoidable. Adverse effects of unemployment will be reduced if every individual can become an entrepreneur. Freelancing allows people to provide services to their own clients. It is very similar to business, with no such investment. If you have indepth knowledge in your field, then you can promote your services using the internet. On the other hand, outsourcing is a good cost-cutting strategy for the organizations.

Outsourcing and Unemployment

Outsourcing is a business trend adopted by different countries in the global market. The major reason behind this strategy is cost reduction. Business trends have been changed dramatically over the past decades. In 2013, the market size for outsourcing services was 93 billion US dollars. Outsourcing specific business processes to the international alliances helps many organizations to improve their efficiency in terms of both fiscal benefits and performance. Now, coming back to the topic, how will it be if people can utilize their expertise for a specific business process? It can be the all-time solution for those unemployed people who are unable to explore their efficiency. Here, the role of freelancing is notable. Unemployment is becoming a stigma for people, and the most suitable way to fight back is freelancing. Many of organizations and individuals are outsourcing their business processes, start picking up those projects as per your expertise.

Reason Behind Process Outsourcing

Nowadays, employers are hiring part-time or contractual employees. Achieving short-term objectives are what the employers are looking for. Now, hiring full-time employees for a temporary position is not going to be a good idea. On the other hand, searching for expertise workforce is a challenge for the companies. Therefore, hiring freelancers is the most suitable strategic move in this particular scenario. This strategy is not only useful for the employers, but it also facilitates the unemployed to come out from the stigma. The only way to increase benefits is to reduce extra wages. If you have a full-time workforce, then you have to provide them fiscal benefits along with monthly wages. However, hiring freelancers would increase your benefit in an effective manner.

Impact of Freelancing on Unemployment Status

Freelancing gives you the opportunity to work from anywhere and anytime you want. In developing countries, the opportunity of being employed is very less. You have to relocate to some other place in order to overcome unemployment. However, if you are capable of working as an individual, then freelancing is one of the best solutions for you. It is not necessary to work as a full-time employee. The work you are doping, should have relevancy with your background. For example, if you are a software developer, then try to pick up programming projects. It will help you to earn money and work experience at the same time.

Outsourcing and Freelancing Improve Economic Stability

Whether it is outsourcing or freelancing, both of these are highly beneficial for an unemployed community of society. Nowadays, the cost of living for the developing countries is increasing remarkably. On the other hand, there is no such opportunity to churn out extra money. These two processes help both employers and individuals in a different way. It is the only possible way to let the community get back on their feet. When someone is outsourcing their processes, many unemployed people get work. They can ultimately contribute to the economy of the country.