Archive for April, 2010
Outsourcing Pros and Cons
Posted by: | CommentsCrazy times ahead. One month left in the second quarter and I feel like I’m still at the starting gate on some levels. My mind is reeling with outsourcing pros and cons.
New clients coming on board with new interests and goals. My head is turned toward outsourcing as a means to increase output. Building a business means I want to be able to walk away at some point. It has to function with or without me.
Right now it’s hard to find the time to stay current on everything which is why finding outsourced (independent contractors) staff is so high on my priority list.
Quality control is a huge consideration but with proper training and understanding, I believe it’s possible to find the right help.
John Reese was interviewed by Ed Dale last night to introduce John’s new membership site http://www.OutsourceForce.com. It was a great webinar going into some details about John’s experiences with outsourcing and how he ended up going to the Philippines and creating an office space there for his staff. He knows how to treat his people well and discussed how a poverty mindset can impede outsourcing success.
Ed did a wonderful job interviewing John and kept the conversation focused on outsourcing very well. It’s easy for those guys to get carried away in their own little world sometimes! They have been good friends for years and have worked together on many projects. I have been following both of them closely since 2004 so when they get together for a webinar – I pay attention!
I currently do virtual assistant work for several clients who are involved in Internet marketing. My goal is to grow a service business to provide quality help to more people in need.
Will I outsource to the Philippines as current outsourcing trends dictate? I’m really not sure. Still have to contact John Jonas and look at what he offers over at http://www.ReplaceYourself.com. It’s on my list of things to do but it’s funny how time just keeps on going by while I plan without taking action.
The outsourcing pros and cons in my mind are as follows:
Outsourcing Pros:
- Tasks you aren’t good at (but may enjoy doing) can be delegated to people who are good at the tasks and probably much faster than you. This frees up your time for the special work you don’t want to outsource.
- Tasks you hate to do can be outsourced to people who enjoy the work or at least manage to do a good job of it. This will remove stress and anxiety from your daily work routine just knowing that you no longer have to do the most detested work but it will still get done in a suitable manner.
- Anything other people do better than you do should be outsourced eventually.
- Once you have your first trained outsource worker, you have virtually cloned yourself and can expect to get twice as much done as long as you keep your worker happy.
- John Reese says the formula for building wealth is to write little checks and cash big checks. Outsourcing is a way of creating a workforce to build your business. Hiring well educated staff from the Philippines is currently a very economical outsourcing trend that can help you achieve your Internet based business goals.
- There are other tools and services available online that will make using outsourced staff teams easier such as the LiveScribePen, and Basecamp which John Reese calls his “Do It Machine”.
Outsourcing Cons:
- Learning to trust other people with your business is not easy to do and with the idea of outsourcing to another country, there are cultural differences to consider as well.
- Starting out it isn’t always possible to outsource every task or project due to financial constraints or security risks with untested independent contractors no matter where they are from.
- You could end up with more work on your plate while training your first outsourced staff person to do what you want the way you want it done.
- Startup capital is required to get this going. Expect to pay at least $300 a month for one person that you will most likely need to train (or retrain) to do things your way.
- It will be difficult to tell if your person is working exclusively for you or not.
I’m sure there is much more I could say about outsourcing pros and cons but this is just a short post to get me going today. Lot’s to do. Have a good one!
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