What Does It Cost to Outsource in 2024?

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cost to outsource

Are you worried about what it will cost to outsource work in 2024? Let us ease your minds. Yes, virtual assistants do expect raises and freelancers do update their rates from time to time. However, at the industry level, there is no hard and fast rule about rates. This means that you are not necessarily facing an increased outsourcing cost. 

That’s great news! But wait, there’s more… You, as the business owner, can actually manage your costs and therefore control spending. In this post, we’ll show you just how to do that!

Factors That Affect Outsourcing Costs in 2024

Before we dive into how your cost to outsource work is manageable, let’s establish some basics. These factors exist for every person looking to hire from overseas. 

1. Location and Geographic Considerations

Where you are hiring from and where you are sourcing hires from matters. Below are the two major areas to think over when looking at the cost to outsource.

First, you need to know about the cost of living in the country you want to hire from. This is the biggest factor that affects rate ranges when outsourcing. If you are looking within the Americas, Europe, and other first-world nations, you will pay much higher rates. Hiring from less developed nations will allow you to pay less while not low-balling prospects. This gets you off on the right foot with candidates. This is especially true for those who aren’t hurting for work because they have the best qualifications. And, frankly, these are the ones you want.

Second, consider your partner options. Hiring through a BPO or an agency will cost more upfront than hiring direct. However, if you have little experience, having a partner can make it worthwhile. Hiring direct leaves you completely unprotected. So, if you’re not savvy with interviewing freelancers and VAs, collaborate with a team that is. This way, you can avoid getting duped because they know how to spot the red flags. Your partner will have contact in the area you’re hiring from. This means that they will have systems in place to screen candidates to ensure quality and performance. 

If you want to check out more information on geographic considerations, we have the following resources:

2. Type of Services Outsourced

All things being equal in the above areas, the actual work you need done will affect costs. Different types of skills are priced differently, mainly based on scarcity and cost to acquire. 

First, certain innate skills, soft skills, and character traits can be hard to find. And since you can’t teach them, they will come at a higher cost. For instance, artistic talent, high-level communication, and friendliness. This is why you would pay a higher rate for a talented t-shirt designer.

Moreover, they’d be well worth the cost with a good reporting routing and an easy-going personality. This is in contrast to someone who uses software and templates to create infographics. If you constantly have to follow up with them, that’s not good. Let’s not even talk about how little you want to hire someone who comes to work in a bad mood half the time. You would not pay well for that kind of performance. 

Second, some hard skills and knowledge-based skills are in high demand. Although teachable, some of these skills can be expensive and difficult to acquire, and then, master. This raises the rate that you can expect to pay for someone who has this skill. Note that the expense and difficulty can also make this skill rare, which supports the high price tag. 

cost to outsource

3. Skill Level and Expertise

Take a close look at the skill levels and years of experience that you need and want. These two factors can mean a significant bump in qualified candidates’ rates. Most hiring parties ignore this, and it’s a huge turn-off to the most qualified candidates. If you don’t require that much background or know-how for the job, you can hire entry-level. Consider, however, how much virtual assistant training will cost you. They still do, after all, need to get up to speed on everything.

4. Cultures and Time Zones 

Most of the time, a person’s time zone would be cause for concern. This can raise the cost to outsource if you want specific work hours. However, in today’s outsourcing world, most freelancers and virtual assistants are willing to adjust. The best of the best may not want to work crazy hours like nurses and emergency personnel. But they generally will agree to work when necessary. Odd hours can be concerning over the long term, even when VAs agree initially. Be sure you check in with hires regularly. This way, you can make sure they’re getting enough quality rest and not hurting their health.

When we talk about culture, it can be a sort of hidden cost under certain conditions. If you are insensitive to hires with different holidays than you, for instance, it can cause tension. For example, people in India and the Philippines have certain annual observances that are non-negotiable. Other people have certain days when they will refuse to work because of their faith. 

You must know these cultural nuances before you hire so you can make an informed decision. We encourage you not to push people in these areas if they tell you that it’s not flexible. Work around their special days, or consider other candidates. If you are working with inexperienced people, they will not even know what to inform you about. They simply will not know what is normal for them is not normal for you. Make sure that you familiarize yourself with these matters and start the conversation.

Common Pay Structures in Outsourcing

You have the freedom to choose from any of these pay models when you outsource. This is the foundation for how you will control your outsourcing cost.

cost to outsource

Difference Between Project-Based vs. Dedicated In-House VA

The cost to outsource can change based on the term and stability of the job. Whether you go for project-based or long-term structures, you can still save. The key is choosing the system that’s best for the type of work you need done.

For repetitive work, the obvious choice is to a dedicated person who can stay on for the long haul. This reduces your training costs and gives both you and the hire the benefits of stability. Then you can work out a scheme for when that hire can expect a raise, and what the conditions are. For instance, you can present a set of metrics to meet. Then, schedule check-ins and evaluations so they know where they are on the scale. This sets a clear expectation and goals to work towards. 

When you have work that is one-off or periodic, we recommend that you hire on a per-project basis. It makes no sense to hire someone long-term if they will have nothing much to do most of the time. You may want to lock in that person because they’re good. You can, of course, give them other things to do while waiting for the next project. However, note that if they are not happy with the other work, their performance will drop. They are also not likely to stay on with you anyway of they don’t like the job.

Sometimes, you’ll have in-between work. There’s no issue with hiring a part-time VA. You may not get the same availability because they’re part time. But you can still encourage a high level of loyalty based on how you treat them. Respect and appreciation go a very long way. 

Hidden Costs to Consider When Outsourcing

Most of the time, you are not going to need to think about hidden costs. Freelancers and VAs pay for their own basic equipment, internet connections, power consumption, workspace rent, and the like. This is one thing that makes the cost to outsource so low! All you need to pay for in most cases is their rate. Maybe you purchase special software tools that you require them to use. That is, if they did not specify that it’s included with the rate. 

So, what are the hidden charges you need to look out for?

This usually refers to the cost that you face for being careless. 

One way to get into trouble here is not having clear agreements with hires or with hiring partners like BPOs and agencies. You have to specify everything and get written consent as much as possible. This will save you from future battles – some of them legal.

Another hidden cost comes to bite you unexpectedly. This one is what you get for low-balling candidates. You may think you got away with paying a lower rate than a prospect asked for. Unless you make up for it, and quick, you will most likely find yourself holding the short end of the stick. No one likes to be stiffed, and no matter how much a candidate agrees and smiles, they aren’t dumb. If you mistreat them by being cheap, they will usually find a way to get back at you. Here are a few common ways you’ll pay for it:

  • Underperforming whenever they can get away with it
  • Stealing (clients, goods, subscriptions, etc.)
  • Dropping you as soon as a better offer comes along
  • Reporting you and your business to inner circles so no one decent in the online community will want to work with you

What Is Outsource School?

outsource school

Outsource School helps you to unlock the potential of virtual assistants and accelerate your business growth.

This is the exact system Outsource School’s founders, Nathan Hirsch and Connor Gillivan, used to go from zero to 8 figures and 40+ virtual assistants with an exit in 2019.

Since being founded in 2020, Outsource School has helped 1,000+ business owners hire 2,000+ virtual assistants for their companies.

Schedule a free sales call to learn more

Free resources you might like: 

Conclusion

When you count the cost to outsource, you are planning for success. We all know that failing to plan is planning to fail, and cost analysis is vital. We are confident, however, that choosing the right combination of factors will spell success for your outsourcing journey. The right location, skills and experience, and payment structure can keep costs down and productivity high.

 

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Virtual Assistant Skills and Qualities to Focus on When Hiring

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Communication Skills First on our virtual assistant skills list is probably the most important – communication. Imagine what would happen if hires did not pass information clearly or concisely. The work pipeline would get clogged up. Individual team members would get confused about tasks. Misunderstandings would occur frequently and nothing would get done properly.  Beyond speaking the same language, there are several signs that a person is a good communicator.  Listens well and is attentive Takes notes Asks good questions Clarifies Can speak back instructions Relays instructions accurately Can give clear instructions 2. Computer Literacy VAs naturally need to be able to navigate the digital space well. This includes software, apps, tools, and search engines. They typically need to know how to do video conferencing, emails, and the like. They Should also be familiar with the tools in the Google and/or Microsoft suites. At a minimum, they need to be adept in the technologies needed to accomplish their job. A great VA will keep learning how to increase productivity. They will also take steps to become more effective by using new tools and even automation. Additionally, freelancers also need to know how to navigate virtual assistant websites and freelance marketplaces.  3. Creativity These qualities don’t just apply to positions that require creative virtual assistant skills. For instance, you don’t need to be a graphics designer, content creator, editor, or advertiser. Innovation is not job specific. VAs can exercise their creative muscles together with their problem-solving skills. This way, they can come up with new ways of accomplishing tasks.  4. Interpersonal Skills Interpersonal skills go hand in hand with communication skills. VAs need to be able to interact and deal with people at different levels. Most VAs you hire will go under a manager. You will also hire some to be these managers. 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19 Best Virtual Assistant Websites to Find Top Talent

Looking to hire the best talent from the top virtual assistant websites? There are millions of freelancers in the world. Yet, it can be difficult to find the right person for the job. Well, we’ve gathered the best freelance websites out there. This way, you can be sure you’re getting the real deal. TL;DR – Best Virtual Assistant Websites Here’s a quick view of the best virtual assistant websites that you can hire from: Fiverr Upwork  Freelancer.com PeoplePerHour LinkedIn Zirtual Hello Rache OnlineJobsPH Virtalent 24/7 Virtual Assistants Virtual Staff Finder FreeUp Magic Woodbows Boldly VirtualStaff.ph Fancy Hands Indeed Time Etc With so many top-tier platforms to choose from, let’s find the perfect virtual assistant for your needs. Want to simplify the hiring process? Visit Outsource School and learn how to hire and manage skilled professionals seamlessly. Set up a consultation today! Perks of Hiring Through Virtual Assistant Platforms As a business owner, you know how overwhelming the workload can be. In such scenarios, you wish for an extra set of hands to handle your work. A website for virtual assistants (VA) might just be your most useful tool. These platforms are a treasure trove of skilled professionals ready to tackle tasks you simply don’t have time (or energy) for. Access to Global Talent: Why limit yourself to local talent when you can hire from any corner of the world? Virtual assistant platforms connect you to professionals worldwide, providing access to diverse skills and expertise. Cost Efficiency: Hiring through these platforms is usually cheaper than hiring a full-time employee. Many VAs work remotely, so you save on office space, benefits, and equipment. Flexibility: Need help for a one-time project or an ongoing task? 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Communication Barriers: Time zones and language barriers can get tricky if your VAs are from different countries. Choose platforms that help with tools or tips to keep things smooth. Hidden Costs: Watch out for extra charges like posting fees or transactional costs. Always check for hidden costs upfront. Data Security: You might be sharing sensitive business information with your VA. Ensure the platform has strict security measures in place, and take extra steps like signing NDAs or using secure communication tools. Unclear Expectations: Miscommunication can harm your business. Be clear about your expectations, timelines, and deliverables from the start to avoid misunderstandings.  19 Top Virtual Assistant Websites With numerous virtual assistant platforms, how do you know which one’s right for you? Don’t worry—we’ve researched for you! Whether you need help with admin tasks, marketing, or specialized projects, there’s a platform tailored to your needs. 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How to Hire an Email Management Virtual Assistant (+ Benefits)

  Are emails bogging you down? Do you feel like you’re spending way too much time at your desk answering them? Do you feel like your inbox could use some sprucing up? Maybe you need a complete email spring cleaning! Whichever it is, it sounds to us like you’re in need of an inbox management virtual assistant.  The good news is that you can actually hire one today! But before you go there, we put together a few things that we think you should know about hiring an inbox management virtual assistant. In this article, we are going to be covering  What Is an Email Management Virtual Assistant? Benefits of Hiring a Virtual Assistant for Email Management 11 Tasks to Hire an Inbox Management Virtual Assistant For How Much Does an Email Management VA Cost? What Are the Best Virtual Assistant Websites to Hire From? Case Study: How John Hired an Email VA & Saved 2 Hours Per Day Sign up for Outsource School and unlock our free hiring packet to help you get the best email management virtual assistant. What Is an Email Management Virtual Assistant? Also known as an inbox management virtual assistant, these individuals are responsible for handling your emails. Their duties involve organizing and sorting emails, creating folders and labels to categorize emails, color coding emails to make them easier to locate, and even deleting unnecessary emails or spam. An outsourced inbox VA will even do all of this for you before you get on in the morning! This way, you can start your with a clean and beautiful inbox and avoid all the stress that unkept email will usually cause. Now, that’s just the categorizing part of the job. You also have the replying side of things, which a more specialized email assistant can handle, too.  When you think about all of that and the amount of time it could take you to accomplish a single day’s worth of emails, you start to see the value of hiring an email assistant. These people typically have developed efficient methods. They will implement proven processes to clean up your inbox and keep it that way. They may also use software programs, as needed and if you prefer, to help manage all the online correspondence.  Benefits of Hiring a Virtual Assistant for Email Management Outsourcing email management impacts both your professional and personal well-being. It frees up your time, so you can undertake other tasks with less strain. Below, let’s highlight the main incentives for hiring an email management virtual assistant. 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Improved Work-Life Balance You should hire an email management VA if you often check your email when out of the office, including during social gatherings. The VA will respond to incoming emails and only contact you for issues that require your attention. This lets you enjoy your breaks from work and take up hobbies, improving your overall well-being. Professional Communication Email management VAs are trained in effective communication as part of their virtual assistant skills. They are proficient at handling customers, including using the right tone and observing cultural sensitivity. They also align the email responses with your brand communication strategy to give your business a professional image. Cost Advantages Hiring an email management VA is more cost-effective than recruiting an in-house personal assistant. The VA works remotely, so you need not increase your office space or invest in infrastructure to accommodate them. Tasks to Outsource to a Virtual Assistant for Email Management Deleting junk emails and keeping your inbox clear of any unwanted newsletters, subscriptions, or promos.  Forwarding emails to the necessary people within your team or others Archiving old emails that might be useful later so you main box isn’t filled with old mail Responding to emails and setting up automatic replies Some email marketing like sending out mass emails such as newsletters and introductory emails to the selected list of customers Managing your contact list which involves sorting contacts in order of importance or priority, categorizing them with labels (customers, business partners, suppliers, internal team, etc.), adding new contacts, and deleting old ones Sorting emails in order of priority so you know which emails are urgent and which can wait  Some customer support duties like answering customer inquiries  Creating folders and applying labels to emails. Labels add specificity. Folders organize old and new emails for future reference. Setting up filters ensuring incoming emails go into the applicable folders tidying up your main inbox Answering emails about meetings and adding them to schedule  How Much Does an Email Management VA Cost? Virtual assistants have a range of prices depending on a number of factors such as skill level, level of experience, scope of work, specialized knowledge, length of project, are you hiring a VA full-time or a part-time VA, and what country they come from.  If you want an inbox management virtual assistant who does only the admin side of things, then in the U.S. you’re looking at an average of $10-$12 per hour. VAs from the Philippines and India are less costly both averaging around $6-$7 per hour.  Now if you’re looking for a VA who can

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