Outsourcing - Profit From the Dark Side of the Workforce! … By Neil Smith
10/1/08
These days it seems every time you call a company for customer service, you get a person with a heavy Indian accent named “Frank” and the miscommunication that can occur with even a small language barrier can mean endless frustration for us hapless consumers!
On the other hand, despite a few annoyances for a company’s clients, there can be some very compelling reasons in the areas of cost-cutting, time management and freeing up manpower to better focus resources, for a business to seriously consider outsourcing, and here’s the best kept secret in town - It’s not just for big business - THE LITTLE GUY CAN OUTSOURCE TOO!
Finance and accounting, Human Resources and Customer Service are just some of the areas that are most popular for outsourcing, but these really are just the tip of the iceberg!
Is Outsourcing Right For My Business?
Q: How does one find out if outside experts can be more cost-efficient and beneficial than performing certain tasks and services in house?
A: You usually want to keep the areas that are at the very core of your business in-house and outsource the less strategic tasks and services (i.e. if you are in the business of customer service, you would probably not want to outsource that operation to “Frank” in India, but if you make a physical product and the core of your business is providing it a lower cost than anyone else, customer service may be an area to consider outsourcing).
Don’t Just Dive Right In! Test the Waters First!
Before just signing a long term agreement with “Fly By Night Money Managers” right out of the gate, it is usually best to commit to your outsourcers in smaller increments in order to get a feel for things, ensure a smooth transition and also to make sure the company you are dealing with actually does the job correctly and competently and that you can trust them with the tasks you are giving them. Therefore a slow and cautious approach of outsourcing things little-by-little at first is generally advised.
What Can I Outsource?
There are as many areas of a business to outsource as your imagination can think of, but here are some areas that are proving to be great candidates for outsourcing:
Virtual Assistants to handle such tasks as scheduling, data entry, research and other areas of creative, administrative and technical support. A great resource for virtual assistance may be found at http://www.ivaa.org The International Virtual Assistants Association.
Public Relations to make sure the world knows about your services and products including print, web, email, radio and television marketing.
Graphic Design and Multimedia including writing services, sales and marketing materials, translation services and presentations.
Can I Outsource My Outsourcing? (Or… can a broker make me richer?)
As with most areas of business, there exist services to help you find services. “Outsourcing brokers” can be used to manage your outsourcers in the areas of interviewing, recruiting and all around maintenance of your relationship with your outsourcers.
What To Watch Out For With Outsourcing!
Hidden Costs - Be sure to take the oversight and training costs into the overall cost of the task you are considering outsourcing. These are not always clear and not always accurately reflected in the outsourcers rate quotes. Hidden costs can also form in your own company from the restructuring of internal tasks and also the telecommunications costs of staying in touch with your outsourcers.
Consider hiring a consultant at first to make sure you are asking the right questions and know how to track the performance of your outsourcing vendors.
Accountability - If your business is large enough to have employees, make sure there is a clear chain of accountability in your company for the tasks being outsourced. You may wish to consider appointing one of your staff as a liaison to your outsourcers.
Have clear targets you wish to achieve with your outsourcing. Know how you will define a successful relationship with an outsourcer.
Company Culture - Be sure the culture of the company you are outsourcing to will be compatible with the business you are in. For instance - certain religions do not allow the handling of pork, so it would obviously not be a good move to hire someone from such a culture to work a snout stand for you! Same principles apply here.
If you proceed with caution and really take the time to know what you are doing, outsourcing may just prove to be a great way to find the hidden profits in YOUR BUSINESS!
Please visit my website at http://www.letsgetahead.com for more great articles like this one!
Posted: October 6th, 2008 under Money.
Tags: Annoyances, Best Kept Secret, Business, Cautious Approach, Cutting Time, Dive Right, Efficiency, Efficient, Endless Frustration, Fly By Night, Focus Resources, Increments, Language Barrier, Let'S Get Ahead, Letsgetahead, Manpower, Miscommunication, Money Managers, Neil Smith, Outsource, Outsourcers, Outsourcing, Small Business, Smooth Transition, Some Very Compelling Reasons, Streamline, Streamlining, Test The Waters, Time Management, Tip Of The Iceberg