Noodesk.com - Blog #subcontractingNoodesk.com - Blog #subcontractinghttps://www.noodesk.com/blogs/tag/subcontractingTue, 17 Mar 2026 03:51:36 -0700http://zoho.com/sites/<![CDATA[ The Real Cost of running an office in Canada ]]>https://www.noodesk.com/blogs/post/organizational-culture-and-the-outsourcing-decision1Organizational culture has significant importance on the outsourcing decision. Lack of understanding of the nature of the marketing field, organizational culture, and Personality traits lead to subcontracting with a business process outsourcing company.]]>

  The Real Cost of running an office in Canada  

Canada ranks the second-best country in the G20 to do business. With a highly educated workforce, stable and peaceful political environment, and most importantly, transparent policies and strong infrastructure, it all seems lucrative to take the chance to start a business. Nevertheless, and similar to many OECDs (Organisation for Economic Co-operation and Development) member countries, AKA developed nations, it is costly to run a business due many factors, for instance: High taxation, High minimum wages, and Costly running bills. Overall operating expenses. 

 

There is no doubt that every minute an office runs costs money. From electricity bills for running computers to gas expenses for warming up employees during the famous cold days of the Great White North, the workspace cost is a reality all businesses need to face and economize efficiently, especially during recession and depression stages of business cycle. Covid pandemic for instance. 

Space is a financial cost in many first world countries. A rent per square foot of class (A) office space in Toronto charges around 23.32 Canadian dollars. (Statistica)

One of the main hurdles for startups and mid-size businesses is to lease proper office space to generate impressive productivity without spending a big share of the budget. 

Counting all the odds of prices in big cities, it requires a Ca$700 minimum to rent an office anywhere in Canada.

Hiring by itself is a long process. It takes at least two months between job posting, talent search, shortlisting, and conducting interviews to evaluate and employ the candidate. The whole process charges up to $3,000, by the Society of Human Resource Management (SHRM). On the other hand, with every hire comes the chance of bad hires and turnover. For this reason, many business solutions advocates suggest outsourcing, especially when it comes to non-core business activities.

 

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]]>Wed, 02 Jun 2021 15:00:00 +0000<![CDATA[Organizational culture and the Outsourcing decision]]>https://www.noodesk.com/blogs/post/organizational-culture-and-the-outsourcing-decisionOrganizational culture has significant importance on the outsourcing decision. Lack of understanding of the nature of the marketing field, organizational culture, and Personality traits lead to subcontracting with a business process outsourcing company.]]>

Organizational culture and the Outsourcing decision

There is a lot of saying about how cost is the main and only reason companies consider before outsourcing. However, a blind spot exists that no one has talked about, organizational culture. Here is a helpful case study to understand the importance of organizational culture and the outsourcing decision.


Josh’s & Co, a mid-size law firm located in Toronto, where it has an office space to accommodate 15 people, with a running cost of 11 660 Canadian dollar monthly.
Josh’s & Co has decided to launch its digital marketing campaign for more conversions. They had to choose between hiring a full time Marketing Manager or outsource the service to a reputable BPO company onshore. However, due to some security concerns, they chose to go for full time recruitment.

After three months of recruitment, the digital marketing manager resigns due to different factors, of which:


 1.Lack of understanding of the nature of marketing field: 


A law firm's specialty is law. It is highly rare for an attorney to understand the digital marketing technology aspects.


 2. The organizational culture: 


Which in most cases adheres to strong hierarchy, does limit the marketing manager creativity space, which puts a working pressure and increase burnout. 

 

3. Personality traits:


 Whether we admit it or not, there is a strong bond between personality and profession. Groups of experts, practicing the same occupation, tend to understand each other more and think the same way. The attorneys at Josh & Co did not get along with the Marketing manager due to many differences. They preferred to chat with each other because they use and understand the same law terminology that the marketer could not comprehend.

The marketing manager's decision to resign due to organizational culture cost the company a minimum of 12000 Dollars, including salary payment and recruitment expenses. It also generated additional expenses for using office utilities and further fees to find a replacement. 

 

Unlike hard cash, time cannot be reparable. On the off chance, Josh & Co spent a high opportunity cost that definitely exceeds 12000 CAD while failing to fulfill its promotional service need. 

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