The recent economic downturn created a huge resource of independent contractors in the
American economy. Independent contractors are individuals or businesses that provide their
services to the general public on an as-needed basis. So how does an organization?
determine if they should develop the capacity to perform work with employees or to buy the
service from an independent contractor? Sometimes organizations fail to see the difference.
and end up in trouble.
Read Independent Contractor (Self Employed) or Employee? (2013,
September). IRS. Retrieved from
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
Question:
A fundamental question for organizations is whether they should buy (outsource) or develop
talent needed. Respond to the following:
Based on our study of compensation and benefits so far, what are some reasons for and against
outsourcing?
Please do NOT consider off-shoring in your response.
