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By outsourcing part of your workload you can save time and spend more time concentrating on beating your competition. By outsourcing part of your workload you can save money and spend more money on marketing or advertising to beat your competition. Below are ways to use outsourcing to beat your competition. There are many other ways outsourcing can help you beat your competition. Outsourcing is when you hire outside professionals or services to take on part of your business workload. Danger #4- Not Knowing What Your Software Should Do Having good requirements and specifications are key to successful software development, and especially for outsourcing. Make sure your outsourcing vendor has a secure facility and uses computers without removable media to reduce the risk of unauthorized access to your IP. Danger #3- Not Protecting Your Intellectual Property The dangers of not protecting your intellectual property (IP) are multiplied when working with outsourcing. Here are seven dangers of outsourcing your software development. You don't need to repeat the mistakes of other companies that have tried outsourcing and failed. According to Gartner research firm, half of the current outsourcing projects will not meet the company's expectations and will be considered failures. At the same time, outsourcing horror stories abound. With competitors achieving their IT needs at 20-30% less cost, and getting ahead in the market because of increased focus within the company, those who ignore the outsourcing trend could potentially lose ground very quickly. By nimbly carving out and outsourcing small pieces of the IT function that deliver the most cost and quality benefit, companies may find they are already receiving maximum savings at minimal risk. Some companies may discover they don't need to incur the risks and organizational chaos of switching to total IT outsourcing. Even though McDonald's testing of business process outsourcing (BPO) has caused quite a stir, it's only the beginning. Controlling costs (and remaining competitive) will require the outsourcing of inefficient business processes. We have already seen outsourcing and offshoring used to an extent what nobody would have dreamed of a few years ago. 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. Outsourcing places those responsibilities on to a team of outsourcing experts who can quickly and successfully link the company's system to its vendors and customers. 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. Many companies share a platform for outsourcing, meaning they reap cost benefits by sharing the provider's data center services and IT infrastructure already in existence for its other clients. Outsourcing eliminates the challenge of fixing IT problems (e. Outsourcing can be based on leveraging an external service provider's economies of scale and expertise. As the complexity of the software grows, you can add QA resources either by outsourcing or hiring your own internal team. Outsourcing is an excellent solution to the problem of nonexistent or incomplete QA. Outsourcing your QA is a terrific first step to taking advantage of low-cost offshore engineering resources. One reason QA is such a good place to start with outsourcing is you do not necessarily need to divulge your source code. Even though outsourcing is criticized for eliminating jobs, outsourced QA may be just the tool you need to help keep yours. Given that there are so many variables involved and the technology keeps getting better and cheaper everyday, outsourcing of your website creation, development, and hosting is a very good idea. The outsourcing of the servicing and hosting of your website is to be preceded by a clear understanding on your part on what you would like achieve by opting for outsourcing. Outsourcing the job to experts will always work out to be cheaper. Author has been doing freelancing for many years, and can be reached at FreelanceFree. Breaking down your objectives into manageable portions will help you to execute each portion fast and also to understand the implications of its actual use on the overall effect of the website. Finding and selecting the right outsourcing company can take many months. Owners of family and privately owned businesses should understand that initiating an outsourcing arrangement takes considerable management time. Critics argue that outsourcing creates too much loss of control, less flexibility, questionable savings and the risk of over dependence on too few vendors. Companies that provide outsourcing services are able to invest more time and resources into the specific functions that generate revenue. And outsourcing companies need to be given overall directives and guidelines for what the company wants done, and therefore, some level of supervision by management will ultimately be needed. Many of the disadvantages of outsourcing can be avoided if you research the service provider and you do not regard outsourcing simply as a money saving scheme - this is not always the case. Consider the advantages and disadvantages of outsourcing before you make your decision. The two most important factors in a successful outsourcing relationship are trust and security - without these the relationship is destined for failure. Outsourcing is the delegation of a business process to an external service provider. Before outsourcing an IT function, look at your firm's own goals and culture. Free trade and outsourcing both produce a few (well, relatively few) big losers, and many (very many) small winners. The story is much the same for outsourcing. Explain the problem, outline the options, list the decision criteria, announce the solution, and report on how well the solution has worked. Or not worked, which becomes the new problem. You won't convince everyone your decision is the right one, but you might convince enough people to make further progress possible. While it's probably not true to say that the traditional 9-5 job is on its way out, it IS true that more and more businesses these days are starting to see the value of outsourcing the jobs they can't cover themselves. Well, if you're a small business owner, outsourcing makes a lot of sense. Your final problem, then, is where to find quality freelancers to outsource your projects to. 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. Because they freelance for a living, they've worked for a wide range of employers on an even wider range of projects. Outsourcing can make your business easier to run and more profitable. For your next campaign, outsourcing may be the perfect solution to make the difference in your bottom line. There are some real advantages to outsourcing. Second, by outsourcing services to a firm, your organization can realize the expertise of an entire group of creative talent. More than ever, business survival depends upon the ability to effectively market and promote your services, as well as keeping costs down. You'll be able to experience that kind of wise outsourcing that can give you required competitive ability. That's the motto of any company that is successful in outsourcing. Although that sounds good and promises several times bigger profits, incautious outsourcing can be a trap for any company. These pools of developers can become your first step in search for an outsourcing company. That will make you aware about the quality of their services. By using our quick tips and in combination with outsourcing, you can gain control of your business, become more productive and be happier while running your business. By outsourcing, you can control costs and pay per task basis. You're only one person and you can't do it all. First you need to acknowledge two simple facts. Accepting this simple fact can be the key to formulating a new and productive business pattern. Once set into motion, Fortune 500 outsourcing agreements often have a shelf life of five or more years. The definitions employers use to quantify successful outsourcing depend on the goals and objectives outlined at the onset of each engagement-and they vary widely. Small- or medium-size firms frequently use single-source outsourcing for operations such as payroll or benefits. Speak to ten companies, and ten HR managers will define outsourcing differently. How will you determine if and when outsourcing meets your needs. |