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Sourcing from service companies costs more than in-house resources

It is a common belief that the costs of an external work force are far greater in comparison than those of an internal work force. Studies have shown that sourcing companies are very cost competitive to internal staffing costs. Digital Work sourcing is even less costly than traditional sourcing. In traditional sourcing, workers are usually temporary and onsite. The onsite requirement often adds high travel costs to the project expenses. Most of these projects can be accomplished by a Digital Work Force. Study after study has concluded that a home based work force is at least equally productive as one that is onsite.

Internal managers typically see the fully burdened cost of the service company, but are usually unaware of their own fully burdened cost. Comparisons are often computed on an hourly rate basis between internal unburdened and external burdened costs.

In the long term, sourcing technical services is less expensive because the customer is time sharing the work force. With Digital Work services, employee overhead, employee energy consumption, employee parking, and facility costs are reduced.