Monday, April 27, 2015

Are You a Control Freak? Is Outsourcing for You & Your Company - Pros & Cons!

My Experience - As a control freak, I often resisted the opportunities to outsource that would have made my operations more efficient and more profitable. While I came-up with many reasons - excuses - for keeping certain functions in house - they never would have survived sufficient scrutiny!

In my file on #outsourcing I had noted this quote by Alphonso Jackson, "The other part of outsourcing is this: it simply says where the work can be done outside better than it can be done inside, we should do it."
The outsourcing decision

Reality - In actuality, my decisions were based on an unreasonable fear of losing control. When I finally had an epiphany - related to my having to step aside from business activities for a period of time - I witnessed that the company(s) ran more efficiently and profitably when certain services were outsourced! Having spoken with a number of business people in my networks, I've come to the conclusion that many small to mid-sized operations fail to take advantage of outsources services that could substantially improve - not change - their business models, efficiencies, and bottom line. It should be noted that in a number of situations you do not outsource the entire service but rather work with a service that assists you in saving time,money, and providing a very specialized service.

Examples of Outsourced Servicies - Here are some of the services that should be considered for outsourcing:

1) Payroll -- Paychex
2) Business Structure Compliance -- Required Filings, Reports, Taxes, etc. - CorpNet
3) Bookkeeping - - Intuit
4) Public Relations Distribution - PRWeb
5) Storefront for promoting your plan, product and/or service - Shopify & BigCommerce
6) SEO - SeoProfiler
7) Email Marketing - StreamSend

Reasons (Excuses) for not outsourcing - Here are some of the excuses for not outsourcing:
          Four According to Success.com
1) Nobody can do it as well as I can.
2) It only takes a minute to complete the task.
3) I can’t afford it.
4) Training someone {a company} will take too much time.
          About Money suggested 5 more:
1) Less Management control.
2) Hidden costs.
3) Threat to security & confidentiality.
4) Quality problems.
5) Tied to the financial well-being of the service provider.
My experience is that these are "excuses" and can be mitigated or overcome!  
Should I Outsource?

Advantages to Outsourcing - Here are several advantages to outsourcing in general:
          Flatworld Solutions points out the following

1. Cost advantages

2. Increased efficiency

3. Focus on core areas

4. Save on infrastructure and technology

5. Access to skilled resources

6. Time zone advantage

7. Faster and better services


Conclusion - Outsourcing may not be for all management styles and companies. Each employer should analyze their own situation and determine how outsourcing  will benefit their organization!.My experience is that for a number of operational functions, the advantages far outway the disadvantages! 


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We welcome your input & ideas! Please send them along to -phil@exclusiveurchases.com 


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