OUTSOURCING VS. FULL-TIME EMPLOYEE
Jul3
Reasons why to choose outsourcing your projects rather than hiring a full-time employee
1. Utilization of Resources
A good alternative to adding a new department or creating a costly task force to complete a specific function is outsourcing. Some tasks may take up an inordinate amount of an employee’s time. By outsourcing, companies can free up their employee’s time which would allow them to do the important day to day function in a timely manner. This increases overall efficiency and improves employee morale.
2. Reduces Operating Cost
Companies that try to do everything themselves may incur very high research, development and marketing expenses. Keeping an employee trained and up to date with within certain fields can be costly too. Outsourcing the secondary functions to experts whose only function is one particular task can be much less expensive in the long run. Additional costs, such as SS tax, WC benefits and health insurance, are all part of hiring a full time employee. A company will not incur these cost with outsourcing to experts.
3. Access to Experts and Specialists
Outsourcing firms are comprised of highly trained and very experienced specialists who know how to handle all aspects of that particular project. For difficult tasks, this allows for many companies to manage those complex projects. The employees will have more time to do their aspects of their job which would increase productivity and customer service. By outsourcing these projects, the company will not be confined to their geographic location. The company will have access to even a greater pool of experts by outsourcing through North America. (We are not talking about outsourcing outside of our borders. We want to keep the jobs within the USA.)
4. Improve Customer Service
When an employee is bogged down with lots of tasks to complete, he/she is less capable of providing excellent customer service. Outsourcing permits a company to redirect its resources from non-core activities toward activities that serve the customer. The level of customer service will increase because time and resources are being focused on that area.
5. Improve Efficiency
Cost, quality, service and speed are critical measures that a company must aim for in improvements. This need to increase efficiency directly conflicts with the need to invest in the primary focus of the business. By freeing up time and resources, the company is able to concentrate on making money and growing the business.
Good Business: Communication 101
Jan1
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While working with a company some years ago and listening to their situation, I suggested developing a Corporate Blog. After meeting with management about the concept, I was told to shelve it until next year. I looked at him and asked him “why?” After pausing for about 10 seconds to choose his best excuse, he said, “We need to take baby steps.”
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I responded, “With all due respect, you’re a technology company with a website that was developed as a student project, you have no cohesive marketing materials in place to compensate, you don’t write press releases, don’t advertise…. what are you waiting for?” He simply said “No”.
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I went through my ideas and pitched it along with a Marketing Plan for the upcoming year (some 2 months later). I mentioned that I wanted to start a Corporate Blog for them and tried to educate them as to why I felt this was a great idea. Time passed and I proceeded to make plans as to how I wanted to architect this new Marketing Tool.
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Another project came up and I felt this would be the ideal situation to implement the blog. I sent out emails describing how I would use the blog and why it would be such a great product for their customers. I thought I was gaining ground on this, until one day one of their Directors said, “Tj, what is a blog?” I learned a valuable lesson that day about communication.
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- Tell them
- Tell them what you told them
- Tell them again
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It was then, I realized that they were not unwilling to commit to this idea due to a lack of potential or investment, but unwilling to commit due to a lack of understanding. It took me over 3 months of talking about the concept to get someone to say, “I really don’t know what that is.”
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Have we really come to a place in our culture where we are afraid to ask for more information due to public image?
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So, I sat down with the Director and explained what a blog was. During the process, he asked questions about the software and then gave me the buy-in. I think this was the same thing that happened when websites first came into existence. Some were like, “oh god I don’t know what that person is talking about”, but I don’t want to sound out of touch so I’ll just say, “well, I don’t know if that is the right fit for us at this moment. Let’s put it on the side and consider it next quarter.” Now look at how many companies have websites.
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To all of you out there that want to ask the question but don’t want to seem less knowledgeable than someone else, ask it anyway. Learn something today that will benefit yourself tomorrow.
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Tj & Dana Todd
Studio490
