I thought I might write this post on the benefits of outsourcing to put this forum category into perspective and to show you how outsourcing can help you grow you business quickly and cost effectively.
In practical business terms, anytime you trust a part of your business operations to a person or business entity that is not an employee of your own company, you are outsourcing. As such, outsourcing can provide some major advantages to large and small businesses.
The biggest benefit would have to be the ability to get tasks done for a fraction of what you would pay if you did that same work internally. The benefits of outsourcing go far beyond cost savings though. Outsourcing allows you to expand the talent pool available for various projects beyond your own personnel. When you choose to outsource work rather than handling it in house, you can choose the best person with the right skills to manage and deliver your project. This is especially helpful if the project is outside your company’s actual core business. There are some very important outsourcing benefits for you to consider if your company is growing, undertaking a special project or simply trying to cut costs. Here are the main benefits:
Flexibility in Capital Costs
When you outsource, you give yourself a world of flexibility in capital costs. By moving tasks to outside freelancers, you decide when you need those services and only pay for them when you actually need them.
Focus on Core Business
Many of the tasks and activities essential to your business success are not actually essential to your core business. If you make widgets, for example, you need a way to distribute your widgets, reach new customers and maintain an easy way for your customers to order widgets. None of those activities are essential to making widgets, but without them, you can’t make money. Outsourcing those activities allows you to focus on what your business does best – make widgets – and hand over the others to individuals who specialize in them.
Nimble Response to Markets
One of the major benefits of outsourcing is the ability it gives your business to respond quickly to market pressures and changes. Outsourcing allows you to move quickly, without having to train your staff in new technologies and skills, and without the expense of expanding your operations physically. In a situation where demand for one of your products far outstrips capacity, you can respond immediately by outsourcing part of production rather than hiring extra workers or adding new equipment for a situation that might only be temporary.
Should I Outsource?
As you can see the benefits of outsourcing are huge. Outsourcing on sites like Freelancer.com is perfect for all businesses especially ones that may face the below issues:
Variable business – Does demand for your business vary from month to month? Do you find yourself in situations where you need to ramp up quickly to meet demands with increased capacity?
Special projects – Are you building or deploying a new website? Do you need market research and recommendations? Are you considering launching a social media marketing campaign?
Expertise – Do you need special expertise to handle one area of your business? Would it benefit you to have access to high-quality professionals in web design, copy writing, marketing or other skills?
Outsourcing, either outside your company or offshore can be confusing and difficult. Finding the right people and working with them is an expertise in itself. Freelancer.com is one of the best services allowing you to post the specifics of your project so that experts and professionals with the skills you need can bid on your job. You can outsource literally anything you can think of on Freelancer.com including website design, logo design, iPhone development, writing and even mechanical engineering.
Freelancer.com gives you access to hundreds of professionals, all of them competing for your business. We give you tools to manage your projects and pay for them safely. Now that you know the benefits of outsourcing, post a project on Freelancer.com and access the largest global labor force in the world.
You can outsource literally anything you can think of but NOT your homework...
Check out some of our success stories and see what some of our employers have to say about Freelancer.com:
Staff leasing enables you to set up your own team consisting of your leased staffs who will work for you exclusively and dedicated. The process works very similar to how you would hire your staff locally.
The down side, it often takes more effort and money to manage outsourced resources than handling things internally.
We've tried outsourcing development but, the code quality was so bad, we ended up having to rewrite it from scratch. Essentially, the use of outsourcing doubled our costs.
From my experience, it's just not worth it.
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Opportunist freelancer working for an "outsourced" developer built into the system some code that collects customer and order details then passes to a remote site via cURL and which then sends out a "phishing" email worded as if there was a problem with the payment and tries to get customers to enter their details on a .co.cc website or a .cz.cc website.
So one of our hosting clients is screaming at us about allowing hacking and lack of security when it was himself using "cheap" methods of having a ecommerce system that caused the problem in the first place!!!
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A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
Last edited by chrishirst; 07-20-2011 at 04:53 AM..
I think today there is no successful business that doesn't outsource.
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Outsourcing is and has always been part of any business structure. The SEO might have helped with data entry in the first few months of a businesses life, but as the company developed his/her skills were worth more in other areas including other staff. Outsourcing is making the balance of optimal company time and strenghts.
I couldn't agree with you more. There's nothing wrong on hiring a "help". This just means your courageous enough to admit that you can't do it all, especially all at the same time.
One advantage of outsourcing is that there are a lot of people who are willing to work for you and is in every bit suited for the position. You could always be open on hiring anyone, anywhere. If you’ve built a stable virtual work space most employees will be more productive than in a comparative office environment. Simply make sure you keep everyone accountable, including yourself, by tracking your time on projects and you’re productivity so you don’t lose your company culture. You could also read some more article for additional info on effective outsourcing.
I can see that this forum is very US based where outsourcing seems to be far better understood. The UK is going through a vast learning curve with regard to outsourcing and playing catch-up. Real money to be made in this educational period.
I actually run a cad outsourcing firm. Basically the biggest downside we have seen with companies using indian firms is the communication factor. We have been able to actual gain market share and beat out some of the "overseas" outsourcing based solely on better communication. I think over the next few years we will see alot of firms using US managed outsourcing with overseas operations.
Outsourcing, either outside your company or offshore can be confusing and difficult. Finding the right people and working with them is an expertise in itself.
This is very true.
The downside to outsourcing is the fact that you really can't be very sure of the people working for you. Most of them you never see personally and you are not certain about how they work.
However, when you practice the extensive hiring and picking process along with good management techniques and the right monitoring tool, you can certainly do away with that downside and focus on the great advantages of outsourcing.
Last edited by Shey; 11-08-2011 at 12:39 AM..
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I must admit - the following post is not self-advertising in any form, just the facts that I know.
India remains the market leader, that's true. But what about other destinations? Let me explain a bit. I'm running an outsourcing company in Belarus, and I'd say we (east-europeans) have some advantages even if compared with those countless indian guys, so let's have a look:
1. Quality. All our (and I mean not only my company, but the majority of firms in the industry) specialists have skills, experience, higher IT education, CVs, certificates and all necessary stuff of that kind, and that is pretty easy to be checked up for anyone.
2. Cost. Some might say east-european outsourcers are too expensive, but I doubt. Many of post-soviet republics' economies were hit hard by the crisis, so that overall average costs remain low, including IT sphere.
3. Security. There appeared reasonable question of "You never know exactly whom you've hired". Well, to my mind, east-european IT outsouring companies also have advantages at this point.
I can't speak much about other countries, but belorusian developers are under constant governmental supervision, I assure you. Yes, we have somehow restricted human rights here - but that makes us solid partners as well
Well, it really depends. What kind of projects would you like to outsource? Are you a small/medium/large enterprise? If you are a start up and with minimum budget to start with, try Freelancer.com or Elance, or Odesk. But if you would like to outsource continuous projects and in need of a stable company as a provider, I suggest, you try RenditionDigital. The website is http://www.renditiondigital.com
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Where do you guys find your outsourcers? can you trust sites like Fiverr?
I'm sure the website itself is ok, it's simply the idiots who post there and are willing to do fifty pounds worth of work for five dollars that I wouldn't trust!
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A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
There are many benefits to outsourcing. First, it cuts your overhead and production costs; second, it gives you the time and effort to focus on your core objectives such as expanding your business; and third, it is very time-effective.
outsourcing is best way to get the work done on very cheep price
And if you are very lucky you might get one that can actually spell!
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A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
Outsourcing can benefit your business in many ways. By taking part in outsourcing it allows you to avoid an excessive amount of expenditures in the early stages of your business. I’ve tried Odesk, Elance and Freelancer before but I have more trust with Staff.com. They only offer full time work and their hiring process involves profound steps to decipher an applicant before they endorse it to a client.
Outsourcing can benefit your business in many ways. By taking part in outsourcing it allows you to avoid an excessive amount of expenditures in the early stages of your business. I’ve tried Odesk, Elance and Freelancer before but I have more trust with Staff.com. They only offer full time work and their hiring process involves profound steps to decipher an applicant before they endorse it to a client.
Should we assume that an English test is NOT one of the "profound steps"???
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A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
Last edited by chrishirst; 08-02-2012 at 04:42 AM..
Well I suppose this thread does go a long way in demonstrating exactly why "outsourcing" is NOT a "beneficial" practice if you require the work to be in English (UK or US versions), to be free of spelling errors and grammatically correct. Because posts #19 and #21 ably demonstrate what you are more likely to get.
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A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
