{"id":492,"date":"2015-08-03T14:34:54","date_gmt":"2015-08-03T22:34:54","guid":{"rendered":"http:\/\/www.checkworks.com\/blog\/?p=492"},"modified":"2015-08-03T14:35:21","modified_gmt":"2015-08-03T22:35:21","slug":"the-ins-and-outs-of-outsourcing-2","status":"publish","type":"post","link":"https:\/\/blog.checkworks.com\/index.php\/the-ins-and-outs-of-outsourcing-2\/","title":{"rendered":"The Ins and Outs of Outsourcing"},"content":{"rendered":"<p><a href=\"https:\/\/www.checkworks.com\/blog\/wp-content\/uploads\/2015\/08\/bigstock-Businessman-sitting-at-white-t-77204429.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-489 size-large\" src=\"https:\/\/www.checkworks.com\/blog\/wp-content\/uploads\/2015\/08\/bigstock-Businessman-sitting-at-white-t-77204429-1024x589.jpg\" alt=\"Businessman sitting at white table with hand drawn business concept background\" width=\"625\" height=\"359\" srcset=\"https:\/\/blog.checkworks.com\/wp-content\/uploads\/2015\/08\/bigstock-Businessman-sitting-at-white-t-77204429-1024x589.jpg 1024w, https:\/\/blog.checkworks.com\/wp-content\/uploads\/2015\/08\/bigstock-Businessman-sitting-at-white-t-77204429-300x173.jpg 300w, https:\/\/blog.checkworks.com\/wp-content\/uploads\/2015\/08\/bigstock-Businessman-sitting-at-white-t-77204429-624x359.jpg 624w\" sizes=\"(max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p class=\"western\">By MJ Plaster<\/p>\n<p class=\"western\">Before you leap into outsourcing, consider how it could affect established relationships with current employees and customers? It\u2019s one thing to save money, but you don\u2019t want to lose key employees or have customers run for the exit.<\/p>\n<h2 class=\"western\">What Is Outsourcing?<\/h2>\n<p class=\"western\">The term \u201coutsource\u201d has two meanings:<\/p>\n<ul>\n<li>To contract with a person or business to provide talent that doesn\u2019t reside within your workforce. The talent you hire is \u201cwork for hire\u201d or sometimes hired on retainer and must fall within IRS guidelines for contractors.<\/li>\n<li>To offshore work to a country with cheaper labor.<\/li>\n<\/ul>\n<p class=\"western\">Both forms of outsourcing provide a service that\u2019s cheaper than hiring an employee when you consider employee overhead.<\/p>\n<p class=\"western\"><!--more--><\/p>\n<h2 class=\"western\">Outsourcing Saves Small Business<\/h2>\n<p class=\"western\">You can\u2019t do it all.<\/p>\n<p class=\"western\">Under <a href=\"http:\/\/obamacarefacts.com\/obamacare-employer-mandate\/\">Obamacare<\/a>, small businesses that employ 50 or more full-time <i>equivalent<\/i> employees must provide health insurance to 95 percent or more of full-time employees and dependents up to age 26 or pay a fine (or what the Supreme Court calls a \u201ctax\u201d). And, Obamacare has redefined full time employment as an average of 30 or more hours per week.<\/p>\n<p class=\"western\"><i>The 50th employee breaks the bank.<\/i> So outsourcing has never been more important to small business.<\/p>\n<p class=\"western\">The devil is in the details. The trick is to outsource the right tasks to the right people under the right circumstances. How do you decide?<\/p>\n<h3 class=\"western\">Step 1\u2014SWOT Analysis<\/h3>\n<p class=\"western\">Before you create an outsourcing strategy, analyze your company\u2019s <b>S<\/b>trengths, <b>W<\/b>eaknesses, <b>O<\/b>pportunities and <b>T<\/b>hreats (SWOT). Download a free <a href=\"https:\/\/www.score.org\/resources\/swot-analysis-worksheet\">SWOT analysis template<\/a> to guide you through the process.<\/p>\n<h3 class=\"western\">Step 2\u2014Plugging in Your SWOT Analysis<\/h3>\n<p class=\"western\">If you have vendors, then you\u2019re already outsourcing. To determine other opportunities for outsourcing, start with the results of the SWOT analysis. Focus on weaknesses, opportunities and threats. Don\u2019t try to fix what\u2019s not broken by outsourcing your strengths.<\/p>\n<ul>\n<li><b>Weaknesses \u2013 <\/b>\u201cSystems\u201d is more than a buzzword. It\u2019s the collection of processes to keep the business motor running smoothly. It takes organizational skill to devise these processes, and if that\u2019s one of your weaknesses, hire a business consultant to help you devise and implement systems that work. Or, what if you could occasionally use an assistant? <a href=\"http:\/\/www.entrepreneur.com\/article\/240698\">Virtual assistants<\/a> are available for project work or on a recurring basis.<\/li>\n<li><b>Opportunities \u2013 <\/b>You\u2019re probably so busy running your business that you don\u2019t have time to mine opportunities or even to see those that fall at your feet. Marketing and public relations professionals can pluck opportunities out of thin air and turn them into revenue streams for you.<\/li>\n<li><b>Threats \u2013 <\/b>Do you run a nightclub? Are Friday and Saturday nights dicey nights for crowd management? Consider hiring a contract bouncer. If you\u2019re too small to hire an information technology professional or a computer security guru, find one to put on retainer or one who is willing to be on call 24\/7. They\u2019re out there, they\u2019re eager for work, and they\u2019ll lock down your computer network as if it were Fort Knox.<\/li>\n<\/ul>\n<p class=\"western\"><i>The Charlotte Observer<\/i> reports,<\/p>\n<p class=\"western\"><strong>\u201cFormer Wells Fargo CEO Dick Kovacevich said Friday that regulations are \u2018killing\u2019 small banks and have contributed to the loss of more [than] a thousand of them since the financial crisis.\u201d<\/strong><\/p>\n<p class=\"western\">Replace \u201csmall banks\u201d with \u201csmall business,\u201d and you get the picture&#8211;because regulations are killing small business. <a href=\"http:\/\/www.washingtonpost.com\/business\/on-small-business\/more-businesses-are-closing-than-starting-can-congress-help-turn-that-around\/2014\/09\/17\/06576cb8-385a-11e4-8601-97ba88884ffd_story.html\"><i>The Washington Post<\/i><\/a> calls it the \u201cailing entrepreneur economy.\u201d It\u2019s not just compliance; it\u2019s the mountain of paperwork mandated by the regulations.<\/p>\n<p class=\"western\">Consider the artisan food processor who has to comply with many of the same provisions in the FDA\u2019s Food Modernization and Safety Act as the corporate giants. The regulations are endless, and the fines are stiff. Multinational conglomerates have entire departments that deal with compliance, but this is not an option for small business. The only way to assure compliance is with the help of a qualified food-safety consultant. If your small business is a regulated business, it can save you a fortune (and maybe save your business) to outsource your compliance needs.<\/p>\n<h3 class=\"western\">Step 3\u2014Contracting Qualified Help<\/h3>\n<p class=\"western\">Nothing beats word-of-mouth. Start with your networks and ask for referrals to qualified sources. If you look for someone online, ask to see previous work and\/or references. Many qualified professionals want to earn extra money with a side hustle. That\u2019s your target market for project work.<\/p>\n<h3 class=\"western\">Step 4\u2014Staying on the Right Side of the Law<\/h3>\n<p class=\"western\">There are times that you want to work through an agency to avoid legal problems:<\/p>\n<ul>\n<li>When you\u2019re not paying on a project basis.<\/li>\n<li>When you require people to work a set amount of hours at specified times.<\/li>\n<\/ul>\n<p class=\"western\">When in doubt, work through an agency to steer clear of any IRS contractor versus employee problems.<\/p>\n<h2 class=\"western\">Outsourcing on the Cheap with Fiverr: A Case Study<\/h2>\n<p class=\"western\">When you\u2019re strapped for cash and you need creative help in a hurry, check out Fiverr.com. It\u2019s the ultimate platform for Type A professionals who actively side hustle. I\u2019ll show you how get the most out of Fiverr using my logo as a case study:<\/p>\n<ol>\n<li>Search for \u201clogo.\u201d<\/li>\n<li>View examples of each provider\u2019s work along with comments from satisfied and not-so-satisfied users.<\/li>\n<li>Narrow your choice to two or three sellers and order <i>multiple<\/i> logos from each seller. If you want anything other than what the seller lists under the job, contact the seller before placing the order. If you have a tagline, provide that to the graphic artist when you order your logo.<\/li>\n<li>Place your order, and when you receive the confirmation along with a request for information, be as specific as possible about your needs. Sometimes a seller from another country suits your needs better than one closer to home. When working with a seller from another country, use plain English and write in short sentences.<\/li>\n<li>Review the order and ask for revisions if necessary.<\/li>\n<li>After you decide which logo to use, order all associated files, including print resolution (300 DPI) files, and Adobe Photoshop and Illustrator files.<\/li>\n<\/ol>\n<p class=\"western\">I worked with two graphic artists. The first one did a nice job, but after living with the logo for a few days, I decided the style didn\u2019t fit my image. So, it was back to the drawing board. Five logos ordered from two graphic artists produced the logo below for under $100, including one rush order, all files mentioned above and tips for a job well done.<\/p>\n<p class=\"western\"><a href=\"https:\/\/www.checkworks.com\/blog\/wp-content\/uploads\/2015\/08\/outsource-image.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-484\" src=\"https:\/\/www.checkworks.com\/blog\/wp-content\/uploads\/2015\/08\/outsource-image-300x115.png\" alt=\"outsource image\" width=\"300\" height=\"115\" srcset=\"https:\/\/blog.checkworks.com\/wp-content\/uploads\/2015\/08\/outsource-image-300x115.png 300w, https:\/\/blog.checkworks.com\/wp-content\/uploads\/2015\/08\/outsource-image.png 477w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p class=\"western\">This is a classic use of outsourcing a one-off project\u2014in an area where admittedly my talent could not fill a thimble. Good luck getting something like this in two days for under $100 from an ad agency.<\/p>\n<p class=\"western\"><b>Driving Away Loyal Customers\u2014A Precautionary Tale<\/b><\/p>\n<p class=\"western\">Dell Computers repeatedly disappointed customers who had paid an arm and a leg for premium tech support and next day, on-site repair. It was a nightmare dealing with their customer support when it was outsourced to every imaginable exotic port of call.<\/p>\n<p class=\"western\">I had one of many such dealings on a Fourth of July. Two continents, four tech support reps and seven hours later, they promised to send someone the next day to repair my laptop. The last tech support rep admitted he gave in just to get rid of me. That was the final straw. For nearly a decade, I took my business elsewhere, which up to that point had amounted to over $10,000 per year.<\/p>\n<p class=\"western\">I wasn\u2019t alone. This trend swept the nation, and all because the company made a bad call on outsourcing. Finally, Dell caught on and <a href=\"http:\/\/www.nbcnews.com\/id\/4853511\/ns\/business-forbes_com\/t\/dell-moves-outsourced-jobs-back-us-shores\/\">insourced the customer service it never should have outsourced<\/a>.<\/p>\n<p class=\"western\">Today, I once again use Dell desktops and notebooks, but I use a third party for support and on-site repair. Once burned, twice shy. A company is judged not so much by what they provide when everything goes right\u2014but by how they handle a situation gone wrong.<\/p>\n<p class=\"western\"><b>Your Outsourcing Experience<\/b><\/p>\n<p class=\"western\">We\u2019d love to hear your outsourcing success stories as well as your horror stories. Please share any lessons you\u2019ve learned in the comment section below. And if you found this article helpful, you know what to do\u2014share it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By MJ Plaster Before you leap into outsourcing, consider how it could affect established relationships with current employees and customers? It\u2019s one thing to save money, but you don\u2019t want to lose key employees or have customers run for the exit. What Is Outsourcing? The term \u201coutsource\u201d has two meanings: To contract with a person [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/492"}],"collection":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/comments?post=492"}],"version-history":[{"count":3,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/492\/revisions"}],"predecessor-version":[{"id":495,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/posts\/492\/revisions\/495"}],"wp:attachment":[{"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/media?parent=492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/categories?post=492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.checkworks.com\/index.php\/wp-json\/wp\/v2\/tags?post=492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}