"Don't outsource something just because you don't want to do it," says Jim Lanzalotto, a marketing and strategic outsourcing company
When You Need Outsource?
For every company, the right time to outsource is different. Some businesses have in-house staff to handle daily activities, but may need outside help to undertake new projects that don't warrant another full-time employee. When you and your current employees are unable to manage the everyday business of your, it is time to consider outsourcing.
What to Outsource?
And these days, almost any task can be outsourced; there are so many qualified professionals work as freelancers or contractors. However, just because you can outsource a task doesn't mean you should.
"Sometimes there are things you don't want to do but they are important to your core business."
"Outsourcing any aspect of [these tasks] would be a big mistake because they would cease to offer anything that their own customers couldn't get elsewhere. So a small business that focuses on product design should not outsource anything related to developing its internal design talent or their design activities. But they should investigate all opportunities for outsourcing tangential processes like payroll services, IT and so on."
The types of tasks that are best outsourced fall into three general categories which are:
- Highly skilled, or executive, expertise. For example, you may not need to pay a high-skilled technology developer, but you could have offshore developers who can help you handle projects on the rainy days.
- Highly repetitive tasks. Accounts payable, data entry and shipping inventory could fall into this category.
- Specialized knowledge. "An example might be the IT support for your accounting system or your network," Landers says. "You may not be able to afford or need a full-time IT person, and it is easier to change to an outsourced provider with the right skill set as your IT needs change."
Finding the Right Contractors
Be sure you're working with the right partner. While technology makes it much easier than it once was to find capable, reliable outsource providers, the selection process is still very important. A good starting place is your own network; ask other business owners or your accountant, lawyer, or banker if they can recommend a provider offering the services you need. Online networks like LinkedIn and Twitter make it easy to expand your personal networks and to ask for recommendations.
In the absence of a good recommendation from a friend or acquaintance, there are other options.
Outsourcing sites usually allow you to see how previous clients rated prospective vendors' work, as well as detailed profiles of the vendors.
Whether you use a web-based marketplace, a personal referral, or a personalized matchmaking consultant, the key to identifying the right contractor is to know exactly what you're looking for.
"Some outsourcing providers focus on speed at the expense of quality or vice versa. This is fine as long as there is a good match between what the small business wants and what the [provider] specializes in. But many small businesses don't realize that there are large differences among outsourcing providers and select the wrong ones. An open and clear conversation with potential contractors regarding these key performance metrics is essential."
After you've found a provider, your work hasn’t over yet. Even after you've checked references, don't be afraid to put a little extra time to creating a specific contract that outlines exactly what performance is expected. Communicate your expectations and the steps included in the job clearly; never assume that your cooperators are thinking what you're thinking. It is very important that the requirements and expectations are laid out in the beginning, and that nothing is left to assumption.
Your final responsibility as a successful outsource is to step back, relinquish control, and allow your new team members to do the job you've hired them to do.
If you're used to doing everything yourself, consider delegating the management of outsourcing relationships to another member of your management team, a move that may help you let go, according to Resnick.
Compare the Costs vs. the Benefits
Counting the Cost
What can you expect to pay a contractor for allowing you to rise above everyday tasks and build a better business? It depends on the type of work you're buying, the skill level and location of your provider, and your own preferences.
For example, through online hiring sites, you can find a freelancer who willing to make an application for you with the price is $500 instead of a company with worth $1000.
Consider multiple task-based while you're evaluating new providers, and transition to a fixed-cost retainer once you're confident in their ability to consistently deliver. You cannot sure that freelancer is as good as his profile and what will happen if a freelancer cannot handle your projects on time?
Facing the Challenges
While outsourcing can yield great advantages for a small company, it's not without challenges. If you choose to work with offshore providers, language barriers and time zones can be difficult to deal with. And "time zones create more opportunity than inconvenience, as you can extend your productive hours by handing tasks over to someone during their workday," Walsh says. "Assign a task at night, and awake to find it complete and waiting for you."
Just as when you hire a new employee, there are security risks involved when handing tasks over to an outsourced provider.
"The most important step a business owner can take to protect his data is to only provide the outsourced service provider with the absolute minimum data necessary for the provider to do its work," Gossels says.
Reaping the Benefits
Although there are risks, outsourcing ultimately offers business owners great advantages. The process allows you to build a team of skilled professionals without adding the expense of full-time employees, and to avoid getting bogged down with tasks that can be completed without your attention. It's an affordable, proven strategy for growing your business without letting it take over your life.
When you outsource, you can focus your time, attention and resources on your company's core competencies--and spend your time setting new goals and finding ways to achieve them.
In conclusion, outsourcing is not always good or bad in one site. Therefore, as a wise business man, you need to consider all pros and coin then making final decision because "We make our choices and our choices make us".
By M.L.T.D