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Outsourcing - BPO
Project Outsourcing: Why ALL Businesses Should Consider Outsourcing
An Integral Part of Business
OUTSOURCING: AN OVERVIEW
Businesses of all kinds can and do benefit from the tool of outsourcing
every day. Businesses large and small have been outsourcing every
day projects for many years.
The businesses that use outsourcing as a tool to enhance and grow
their business already know the value that outsourcing brings
to their organization. Outsourcing is a business process term
for what has literally become known as hiring a consultant, independent
contractor, or freelancer to do a specific task or tasks for an
organization in which the organization either does not have the
time or the expertise to do on their own. The organizations that
have used outsourcing for many years know that with the positives
it brings to the organization that it is also important to have
a well managed plan of action for hiring a consultant or contractor
for a business task. This includes deciding which projects or
tasks to outsource, whom to hire for these tasks, how to manage
the project, how to agree on payment terms, and how to achieve
the desired results. There are many forms of outsourcing ranging
from outsourcing payroll to outsourcing package handling, to everything
in between. Small businesses hiring a self-employed accountant
to handle the corporate tax returns are in essence hiring a tax
consultant. Large corporations that hire outside customer service
firms to handle their customer support are outsourcing that function
of their business to focus more on their core business functions.
It is entirely possible to outsource practically every business
process within an organization.
OUTSOURCING TOOLS
There are a wealth of tools available for the organization looking
to outsource business processes. Companies such as SmartyLance.com,
enable a business to post a project to a project marketplace and
receive bids from experts in the field. These type of freelance
sites match companies with freelance professionals, consultants,
and independent contractors. There are many advantages for a business
to use services such as SmartyLance. First, the marketplace enables
businesses to use a centralized location to post their project,
receive bids on that project, communicate with potential providers,
choose a winning bid (either based on lowest cost or based on
the credentials, expertise, or prior feedback of a particular
provider), manage the project specifications, receive the delivered
project and make final payment based on the terms of the auction.
This centralized marketplace provided by SmartyLance greatly streamlines
the entire outsourcing process and enables the business owner
or manager to have greater control over the entire outsourcing
process.
INCREASING COMPETITION
Competition is a complicated subject for many people. Ultimately,
competition is good for the consumer, whether the consumer is
an individual or a business, competition enables products and
services to maintain high quality and low cost. Although many
people dislike competition because it forces action to improve
quality, the benefits to the overall economy even result in improved
products and services for the very people that dismiss competition
and the headaches it sometimes brings.
Freelance marketplaces such as SmartyLance are no exception in
that competition improves the overall quality and value for the
project buyer and causes the freelance provider to adjust to market
conditions in a practical, intelligent manner to win new business.
The benefits to the company looking to hire freelancers are obvious.
For example, Company A can compile a list of consultants to work
on the design of their new company logo. This list may include
a multitude of design firms from the same geographical area. Company
A would be required to submit an RFP by contacting each design
firm individually, stating the requirements of their project and
requesting a quote based on the requirements. Many factors come
into play in deciding which design firm Company A will choose.
Chances are, that using this approach, Company A will end up paying
too much for the project and will only have a handful of providers
to choose from. Company B also must outsource the design of their
new company logo. Rather than compile lists of design firms, which
can result in overpriced quotes, Company B decides to post their
logo design project to the SmartyLance marketplace. Doing so enables
Company B to get competitive bids that help ensure that Company
B gets the most competitive price for their project. By posting
the logo design project to SmartyLance, Company B not only reduced
costs associated with the project, they had access to specialists
and skilled professional designers from around the world that
were competing to give Company B the best cost and highest quality
design for their money. The entire process was managed easily
through Company B’s SmartyLance account enabling them to
keep in contact, manage project specifications, manage competing
bids, and send payment easily and securely through one of several
different payment methods. An escrow account enabled Company B
to ensure that payment wasn’t released to the provider until
all project requirements were met. Company B successfully outsourced
the logo design project and was able to save several hundred dollars.
They also received the project several days quicker than Company
A. In this example of Company A and Company B, we see that Company
A had limited its ability to find a skilled professional and limited
its ability to save money on the project. Company B took full
advantage of all the resources and benefits of the SmartyLance
marketplace and was able to save time and money. By outsourcing
critical business functions that are not core business functions,
the organization greatly benefits through a savings of time and
money which in turn benefits us all through decreasing costs that
are passed down to the consumer.
TO OUTSOURCE OR NOT TO OUTSOURCE?
That is the question many small business owners and large corporations
alike are asking themselves each and every day. Risks are inherent
in any new business strategy or thought process. However, like
any business decision, risk can be managed. By intelligently choosing
a provider that matches your intended skill requirements, carefully
detailing and outlining your project requirements, and ensuring
that you maintain the requirements within budget, the benefits
can far outweigh the risks. One of the more common fears among
some larger organizations that may be reluctant to outsource projects
is a fear of the unknown.
This fear stems from the inherent inability to oversee each and
every aspect of the project from start to finish and to evaluate
each step along the way. Internal employees devoted to a project
are more easily evaluated and can be guided through performance
and work appraisals. Managers may feel that outsourced projects
are more difficult to oversee and manage with an eagle eye. The
fact of the matter is that so long as there are well-defined contractual
obligations and project reporting requirements, an outsourced
project can in fact result in a more manageable outcome than actually
thought. Also, the talent pool and skills obtained that may be
completely unavailable to the organization allow the organization
to reach milestones and achieve success that may never have been
possible with their current employees.
OUTSOURCING CONTROVERSY
The outsourcing controversy that is making headlines today is
the public opinion of outsourcing jobs to other countries. This
includes manufacturing of products, such as those that are “Made
In China” as well as service outsourcing such as computer
programming that is outsourced to skilled workers in India. One
can argue that outsourcing projects overseas is taking opportunity
away from workers in their native country. Others may contend
that outsourcing projects, whether it’s overseas or in the
same country is a great opportunity that will improve business
processes, improve productivity, reduce costs and have an overall
positive effect on the economy, thus creating more new jobs and
specialized jobs in specific skill areas. All businesses are consistently
looking for ways to increase productivity and lower costs. From
an economic standpoint, increasing productivity and lowering costs
are essential elements for business success. Business success,
in turn leads to more growth, which leads to new job creation,
be it in a more specialized skill area or through the development
in new types of jobs in new specialized areas.
OUTSOURCED BUSINESS PROCESSES
As mentioned previously, practically any business process not
related to the core business activity can be outsourced. Some
examples of commonly outsourced business processes include:
Accounting and Finance
Graphic Design & Multimedia
Sales and Telemarketing
Web Design and Development
Administrative Support and Data Entry
Business Strategy, Advertising, Business Plans, Consulting
Legal, Contracts, Copyright, Corporate, Incorporation
Software and Technology, Database Development
Writing and Translation, Copy Writing, Creative Writing
Press Releases
A REWARDING CAREER
Having a specialty or skill in a particular business area can
enable you to begin a career as a consultant or freelancer. Freelancing
enables you to have the flexibility to work on your own and on
your own schedule. You can choose which projects match your skill
set and decide which types of freelance projects that you would
be interested in working on. There are numerous sources available
to find freelance work. Some sources include browsing freelance
directories, job boards, and registering with talent auction sites
such as SmartyLance. All of these resources are filled with potential
jobs. In comparison, it seems that talent auctions are the most
comprehensive resources offering the most flexibility to both
the freelancer and the company hiring a freelancer. They offer
the breadth and depth of listings and the simplicity to bid on
numerous projects as well as services enabling the handling of
the entire payment process through a service provider account
with the talent auction site. Bidding on projects requires much
discipline and planning. Before placing a bid or giving a quote
on a project, the freelancer must take into account many factors
including the length of time required for the project completion,
the budget the service buyer can afford, and whether or not they
can actually meet the requirements to complete the project. It
is also important to keep in mind that developing relationships
with service buyers can lead to more work in the future. Developing
a relationship with service buyers and meeting or exceeding their
project expectations will enable you to develop a client base
that allows you to practically always have new projects to work
on.
COMPETITION FOR PROJECTS
There will always be competition in all forms of business. Competition
for freelance projects is fierce. One of the major ways to compete
and win is to make yourself stand out from the rest of the crowd.
You can start by fine tuning your resume. This will force you
to think about your accomplishments as well as your exact skills
and abilities. There are numerous services that can help you with
your resume, including ResumeEdge. Using a service to help you
with your resume will enable you to better explain your accomplishments
and present them in a manner that will captivate and impress the
reader. Especially if you are an independent freelancer, having
your resume retooled by ResumeEdge will allow you to stand out
in a crowded marketplace. Many freelance service buyers will wish
to see a list of your accomplishments and your skills. If you
register as a service provider with a freelance marketplace such
as SmartyLance, they offer several different options that enable
you to stand out above the crowd. First, there are different subscription
levels when registering. There is a Limited subscription, a Novice
subscription or a Professional subscription. Each higher level
subscription offers more options to the service provider. Every
service provider does have the ability to post a profile, detailing
various information about their abilities. Limited subscriptions
limit the cost range in which a service provider can bid. For
example, a Limited service provider can only bid on projects with
a price range less than one thousand dollars. Novice subscription
service providers can bid on projects less than five thousand
dollars, and Professional subscription service providers can bid
on any service level project. Several added bonuses with the Novice
and Professional subscription levels include the ability to purchase
credential verification services as well as the ability to post
“Buy Now” projects. Credential verification services
enable you to post information related to your references, certifications,
licenses, education and previous employment. Simply adding these
options to your account gives you a special designation stating
that your information has been checked and verified as being true
and accurate by the freelance marketplace. This designation gives
you an added level of credibility making you stand out from the
rest of the service providers and enabling you to showcase your
achievements and abilities, giving a service buyer confidence
in choosing you to complete their project. This will undoubtedly
lead to more work and more projects coming your way. In addition
to verifying your credentials, you have the ability to showcase
a portfolio of your previous work. This allows you to show the
service buyers your achievements and your successes with previous
clients. Showcasing your portfolio is another important aspect
that gives the service buyer confidence in your ability. Finally,
the higher level subscriptions enable you as a service provider
to offer “Buy Now” solutions. Similar to purchasing
products immediately without bidding as on major product auctions
such as Ebay, “Buy Now” solutions enable freelance service
providers and consultants to make a solution available to all
service buyers for a specific set price. For example, a freelance
graphic design firm may create a “Corporate Identity Package”,
enabling a service buyer to purchase this package that may include
the graphic design of a logo, along with designs for letterhead,
business cards, and banner ads. Another example could be from
a lawyer or legal consultant who creates an incorporation package
that includes corporate setup and incorporation services for all
fifty states, creation of shareholder agreements, employment agreements,
and registered agent services all for a set price. These simple
examples of “Buy Now” services enable freelance consultants
and independent contractors to create easy options for service
buyers who are looking for simple solutions and quick turnaround
time. Service providers also enjoy creating these type of services
because it enables them to focus on their core interests and abilities.
Only higher level subscriptions such as the Novice or Limited
subscriptions enable freelance service providers to post “Buy
Now” projects. The beauty of these additional options as
a freelance service provider is that you can focus on one specific
aspect of your business. If you are a consultant for a graphic
design firm and you simply enjoy creating and designing corporate
logos and identities, then you can find work specifically in this
area by posting your own “Buy Now” solution. If you
are a lawyer working for your own legal firm and your passion
is new business setups and incorporation services, then you can
steer projects your way with a “Buy Now” solution posted
on a freelance marketplace like SmartyLance.
CONCLUSION
These are only a few examples of the many opportunities that
exist as a freelancer. Whether you are a small business, an individual,
or a large corporation, this article simply serves as a guide
to help you in your quest to use outsourcing to your advantage
to help your business grow and flourish. Outsourcing, when done
correctly, can benefit your business in so many different ways.
The two most obvious benefits are a savings of time and money.
From the freelancer’s standpoint, this article has been developed
to help educate and guide you with the many options available
to find work as well as to delve into the minds of freelance service
buyers. Knowing their concerns and understanding the reasons for
choosing one service provider over another will greatly benefit
you by enabling you to increase your odds for getting new business.
Understanding the concerns and needs of service buyers will lead
to your gains as a service provider. If you are able to provide
enough people with services that they wish to have, then you will
always be in demand.
About the Author: Jack Thompson is a freelance writer, business
consultant and entrepreneur. He has helped thousands of individuals
and businesses across the world realize the benefits of outsourcing.
Article Source: http://EzineArticles.com/
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