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A source is a source, of course of course...
Written by Aaron
Colman
info@ibasics.biz
http://www.ibasics.biz
In the
beginning, people hunted animals... grew
crops... and lived close to the
people they worked for. In fact that was one of the big plusses in working
for someone else. If you worked for a local king, his castle and guards
would protect you from outside armies, while providing a means to settle
domestic disputes.
As time went on, governments became less about
getting work done and more about collecting taxes and providing for the
general welfare of it's people.
In the corporate age, people would come
to work for a central agency and that organization took on many of the
same roles as the kingdoms of old.
Times have changed some. Today, with
the advent of a wide-spread Internet some tasks can be done by people
anywhere in the world. If this trend continues, many projects will end
up having it's work "distributed" across a large area. This is known as
outsourcing.
Outsourcing has become very controversial as many people
feel that their jobs are being shipped overseas with no potential for
getting a new one, but there's a definite upside to domestic outsourcing.
Domestic outsourcing is different from off-shoring. Domestic means
that you're outsourcing to someone else in the same country or area. Not
only are you providing for your local community, but there's a real
cost-to-benefit increase in staying in a local jurisdiction.
When
you offshore to someplace far overseas, there's not a heck of a lot you can
do if they decide to blow you off. It's just not feasible to take someone to
court overseas for a few thousand dollars. This means that outsourcing
projects overseas comes with a definite increase in risk associated with
the decrease in cost. This shouldn't be surprising as most
increases
return come with added risk... but there is a reliable way to
improve your returns without adding this risk. And that
is...
Domestic Outsourcing.
Domestic outsourcing IS the wave of
the future. Large corporations are being overtaken by the large waves
of competition from smaller, more efficient, organizations. While some
large industrial applications can never be outsourced, many can
be.
Here are some things to consider when outsourcing a
project:
The Pros:
The biggest decrease is in cost. If you have
only a small project that needs done, why go thru the hassle of hiring
someone and paying all of those taxes and related fees? Not to mention the
potential legal issues of hiring a staff. Liability issues, discrimination
laws, the list is huge.
The next benefit is a decreased management
overhead. This is really important if you're a small firm. You shouldn't
be spending left and right by hiring a manager when things are too tight to
effectively advertise. Simply hire someone as an independent contractor and
arrange an agreement to pay them based on performance.
Labor is
easier to find. Hiring means asking around, getting referrals, collecting
resumes, placing classifieds, posting job lists, the works. Hiring out
means calling a temp agency, placing a help-wanted on guru.com or one of
the other work @ home website, or one a dozen other super easy ways to find
quick work. You have the benefit of a high supply of workers, low demand
for work to benefit your side.
The Cons:
The biggest negative reduced
accountability. In a traditional employment scenario you've got boss
looking over each person's shoulder reminding them what their job is.
Out-sourcing is not like this at all. It's important to structure payment in
such a way that the project gets done. If you spend thousands up front,
there's always the risk that they could bail out. This also means that
you should take a look at previous work. If they have a habit of being
dedicated to their past projects... then they'll probably be dedicated to
you too. Due diligence is must. Outsourcing is not for the
micro-manager.
Repetitive or long term projects are also difficult
to efficiently outsource unless you can get a long-term, reliable,
maintenance agreement. Easier said than done. It's much easier (and usually
cheaper) to hire someone
for $20 an hour to work full time ($40,000k a year)
and finish 40 different projects than to outsource each project and
manage the risks and payment headache. Especially if you're on a deadline or
counting on each project to be done according to tight
specifications.
Conclusion:
Depending upon your needs, it may be a
good idea to look around at your outsourcing options. I would definitely
recommend trying domestic outsourcing first. If you're worried about losing
touch with your contractors then hire someone local, if you're willing
to assume added risk for improved cost then try your hand in the
national markets.
It's a great way to find people with different skills
for your organization. Stop wasting your time trying to be the "jack of
all trades" for your company and let experts handle the work for you. That's
what the efficient distribution of work is all about. Give it a
try!
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Aaron Colman helps businesses make money online and specializes in web design and custom script work.
My eCourse - Learn Mastering Internet Lead Generation at http://www.ibasics.biz/leads
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