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The survey also indicated that 55% of firms who outsource do so within IT-more than any other area. This substantial savings potential isn't easily overlooked, yet it isn't the number one reason companies are choosing to outsource right now. When the outsourcer failed, the CIO couldn't rebuild his team fast enough to finish the job. An anonymous case study in IT Metrics Strategies discusses a CIO who chose to outsource to beat competitors to market. According to a report by Foote Partners, as much as 45% of North American IT work will be outsourced by 2005. You may want to outsource part of your work because you don't have the room, you need an expert, you have periodic busy periods, or you need more production to get orders out on time etc. You could outsource accounting, secretarial tasks, factory help, computer training, web design etc. There are many other ways outsourcing can help you beat your competition. Tony Newton is the editor of the popular website http. By outsourcing part of your workload you can save time and spend more time concentrating on beating your competition. Your final problem, then, is where to find quality freelancers to outsource your projects to. When you outsource a project, you're paying by the project - so you don't waste money paying for time spent doing other things (like making that coffee, or opening the mail. Things like copywriting, PR, programming - even secretarial and admin support - are being outsourced to freelancers working from home or running their own business. To go back to the example of copywriting, unless you're a copywriter yourself, you probably don't know the difference between a good one or a bad one. Good freelancers are normally experts in their field. Here is the top 5 list of accounting areas that you should outsource to the experts. Get educated with a small consulting on how to outsource accountingwith these folks before you begin the next cost-saving company meeting that you want to hold. Outsource this first if you have more than 20 employees. The best would be to outsource this task and have a limited in-house staff to oversee the operation. There are a few more that could be outsourced but these are the major areas you may want to evaluate in your next board or company meeting. So what are the key factors that make companies outsource. At least you will know about their command of English (don't forget, you are going to outsource abroad) and their real interest. As a logical sequence, almost each leading company engaged in IT sphere, whether publicly or secretly, outsources a part of its current work to third parties, often offshore. Hence, if you have made a decision to outsource a part or the whole project to some company, you should take into consideration five simple tips. The best way to test the company, which you would like to outsource to, is contact them directly. Outsource correctly, and you can position your company to outshine your competitors and make your investors happy. Outsourcing helps achieve that, but you need to be careful about what you outsource and whom to outsource it to. As for deciding whom to outsource to, ask yourself, What is the basis of competition in the outsourcing vendor's industry? Is your vendor appropriately integrated to deliver against the dimensions of performance that matter most to you? If so, you have made the right choice. An adjunct marketing professor at UCSD since 1984, he is the author of Self Marketing Secrets and the recently published Client Seduction. A mistake to be avoided is basing your outsourcing decisions on what you think you are good at, instead of what you should be good at. It is also a major concern when you outsource to programmers that are far away. You can outsource the programming but not all the responsibility for creating great software. Fortunately, outsourcing can be successful with only a high-level specification and an outsourced team that can collaborate and communicate with you to determine the details. Danger #7- Quality as an Afterthought QA is a critical part of the software development process. They become deadly if your career or entire company depends on the timely release of your software. While many outsource dealings are conducted at arms length, and on a contentious basis, annexing relies on close long-term collaboration, or partnership. The practice of outsourcing business processes has long been subject to the discussion how best to ensure optimal benefits for both parties involved in the outsource agreement. When this is controlled by evolving service level agreements, the parties to the long term outsource contract can both finally deal from a position of equal power. In conventional outsource agreements conflict often arises between the objective to minimize cost and the necessity to continually develop the service. This mechanism protects the investment that the purchaser places in the provider and ensures that the corresponding competitive advantage remains out of reach of competitors. Then a new senior director decided to consolidate and outsource, for 'economy and consistency. If you are going to outsource, especially if your business is big enough, where it's not only the fashion, but it can have economic and logistic value, take the following steps. Have a named and senior contact in the organisation for whom there will be pain if they lose the contract. If things start going wrong tackle them early, before too much money is wasted. If 'Head Office' agrees the contract, don't chase your own tail over non-delivery - get someone from there down as soon as there is a problem - you have enough to do. Finally, if you do decide to outsource, your choice of contractors is going to make or break the project. Select an outsource firm that you can trust, with people who are experienced and field-tested. After the decision to outsource is made, the next challenge is to find the right resources--something easier said than done. If you have outsourced through an agency, you can go to the agency and ask it to find someone else. When the work load surges, your outsource agency can rapidly pick up the extra work by placing contractors who are already up to speed. Good outsourcers will have a dedicated team servicing the customer, led by the controller who acts as the 'go to' person. Such a partner will lend expertise to ensure an optimum blend of in-house and outsourced functions. A valuable outsource partner will do more than lighten the load. Finally, it's important to remember that even an outsourced IT function does not go away entirely. Only then can you rest assured that you have achieved an optimum blend of in-house and outsourced IT functions. Writing a safety manual is a tough job and most larger corporations outsource such jobs or they have someone on staff with the proper credentials in risk management. After a few revisions you are ready to turn this into a manual. Before completing this project take this plan and discuss it with a safety specialist in your industry for pointers and possible wording, you may also find sample safety plans which you can borrow key phrases. Safety is everyone's business, as the saying goes. Then bring this up in your next team meeting and get some additional insight from a couple star employees. IT, finance, supply chain management, and customer relationship management have been outsourced. To read Brakeley's entire article on Learning BPO see the April 2005 issue of Chief Learning Officer. To read more about Overcoming Resistance to Change see my special report at http. Be prepared for strong resistance to change when considering Learning BPO. How much of the learning process should your organization outsource? Are you fully aware of what outsourcing possibilities are available to your organization? Obviously, you cannot ask your internal providers for an objective evaluation of external resources. When looking to outsource overseas for Plastic Injection Molds or Stamping Dies there are many things to consider. For more information on innovative outsourcing techniques, please visit. Staff members have a wide variety of cultural backgrounds, education, and experiences, extensive experience in international trade shows, seminars, and customer relations. Steve Koons is on the marketing team at Solinc, an International company specializing in innovative outsourcing solutions for the die and mold market. East and West business practices can be very different which often leads to misunderstandings, mistakes, poor quality, and delays. If you intend to outsource this function, your SLA should include a shared billing accuracy reward to the service provider if they help you improve revenues. If you outsource your help desk, you may want an SLA that measures the time it takes to answer the phone. Many businesses strike deals with IT companies and leave SLA's as an open item. Many IT service providers will want to establish a base line period where SLA's are measured and then negotiated. If you are not very specific with the calculation methods, actual performance against service levels are open for debate. |