If you haven’t considered outsourcing parts of your business, then you’re missing out on some amazing opportunities and in danger of losing work to companies who do embrace outsourcing.
Doing it all yourself in today’s market is similar to manufacturing companies in the past who refused to automate their processes and lost out to companies who utilized technology and prospered. It was common to hear things like “Why should we change when we’ve been successful for decades doing it our way?”
The companies who had that view are generally out of business now. The business world is always changing and advancing, and if you want your company to keep up, then you should at least consider outsourcing parts of your operation.
Outsourcing is not about what you can subtract from your company; it’s about what you can add. Let someone else take care of your back office chores so you can concentrate on what you do well, taking care of your customers. Time spent on bookkeeping, editing graphics, data entry, etc. add little or no value to your customer relationships. How much is your time worth? You can easily find a skilled employee who can provide your back office support needs for $7 to $10 per hour. Why not use your valuable time to take care of the more important aspects of your business?
Maybe you think that only large companies can take advantage of outsourcing because they have their own offices in other countries. It’s true that in the past only large companies like GE and American Express had been experiencing tremendous savings by sending their back-office functions offshore. They were the only ones who could afford to create and maintain their own staff in other countries. The Internet has changed this, and leveled the playing field. Now, even the smallest companies or individuals may take advantage of the cost savings of outsourcing by contracting with small outsourcing companies (including my own companies, Outsourcing Pros Inc., and The Right Click Design Inc.) that manage the entire process for our customers.
The press has given outsourcing a bad reputation over the last decade. Articles claim that companies who outsource are “hurting America” or “not being fair to their American employees.” The last time I checked, this is a capitalist country and most of the world is as well. Companies MUST use every advantage available if they expect to compete with wise companies in The US as well as those from around the world. Companies who embraced automation in their factories got the same bad press from reporters decades ago. The companies who “were kind to their employees” and didn’t automate their processes, are almost all out of business today.
Some articles mention the damage that some companies in other countries do to the environment, or how they mistreat their employees. This is surely a problem that must be addressed. I would suggest that you ask any company that you are considering to do business with, about their safety standards, how they treat their employees, how they dispose of waste etc. One good way to address this situation is to do business with a company that has offices in the US as well as abroad. I have found that, in general, US based outsourcing companies with offices overseas are more likely to deal with their employees with respect, pay fairly, and care about the environment. These beliefs are certainly the foundations of my companies. I consider my employees to be my “work family”, and the respect they receive from me gets passed on to our customers.
Outsourcing actually boosts trade, profitability and in many cases can even ADD employees to company’s payrolls. Here’s what Janet Yellen, Chief Economist to President Bill Clinton, said in the Wall Street Journal:
“In the long run, outsourcing is another form of trade that benefits the US economy by giving us cheaper ways to do things.”
I hear stories all the time about how a company actually increased their number of employees after they outsourced part of their business. For example, a company was running out of space in their office and couldn’t add any more call center agents or data entry employees. In addition, they were spending so much of their time with problems in their call center that they couldn’t focus on expanding their business and taking care of their customers. They decided to outsource their call center and data entry. Since then, they’ve doubled their business, doubled the number of technicians they employ and are much more profitable because they save so much on their back office work.
Website and graphics work are other areas that are perfect for outsourcing. It is easy to find very skilled website programmers and graphic artists around the world who will work for a fraction of what their counterparts in the US demand. If you were paying an employee $35 an hour and you found someone in town to do the same work for $10 an hour, you’d be a fool not to make the change, right? Outsourcing across the world is no different from outsourcing across town. A company you may want to consider that is an expert in this field is The Right Click Design Inc. You can check them out on their website www.therightclickdesign.com. There are many other companies that can also support you in this area.
If you’re running a business, clearly, you must do your best to turn a profit. You are not running a charity, and certainly won’t be receiving any support from the US government to subsidize your payroll. Don’t be afraid of criticism when you decide to outsource some of your work. You may want to tell your critics something like this: “I’m not running a charity, and I have to do what I can to keep up with my competition or I’ll be out of business and ALL of my employees will be out of work.”