Comments on: Outsourcing – Be Prepared To Let Go

By: Outsourcing what works, don’t outsource what doesn’t!

Outsourcing what works, don’t outsource what doesn’t! — Sun, 28 Aug 2011 17:31:35 +0000

[...] on earth would you want to outsource something that is already working, rather than outsourcing something that is not working well and driving you [...]

By: JustinGreene01

JustinGreene01 — Fri, 11 Jun 2010 10:01:01 +0000

There is a growing demand in the business sector to outsource business processes. Since the start of the economic downturn, most businesses resorted to control their costs. For example, instead of employing a team to organize company information, some companies opted for outsourcing payroll providers. These are companies that has the expertise and the technology needed to effectively compute employee compensation and tax remittances.

Also, aside from costs payroll (Colorado and other states) firms and accounting companies can help businesses by saving them time that can be used to improve the company's core competencies. Instead of worrying about deadlines and penalties for federal taxes, they can already focus in more pressing issues involving company growth like critical business deals.

By: Barney Austen

Barney Austen — Tue, 25 May 2010 13:45:09 +0000

Hi Elaine.

Just to clarify my point on the money side, I am not disputing that a successful outsource program will save money and this can be a driver. It is more that the company should not be making that its primary focus when making the decision.

The example I gave of the accountant in the post - for us, the decision was made to use an external accountant because we did not have the expertise, consideration to the cost was secondary i.e. after we'd made the decision to gain the external skills, we then looked for the best deal that we could get.

I think that the mistake some businesses can make when looking at outsourcing is to use it as a "fix all" when they are having problems in a certain area that is costing them a lot to run but is also run badly. In the near to medium term, if you outsource a problem area - it is more likely to cost you more before reducing the cost. On the other hand, if you have an effectively run department with repeatable processes then it can be considered for outsourcing to try and save costs - but again, this is likely to be coupled with "what other expertise can the partner bring to the table".

Thanks for adding to the discussion, this one does not have an easy answer.

By: Elaine @ O2 ideas room

Elaine @ O2 ideas room — Mon, 24 May 2010 23:47:34 +0000

Thanks for the post. It is interesting to see the correlation between what you are saying and what Gary Shanley blogged about. Outsourcing must be seen strategically as a way of utilizing a company’s core competencies to better your organization. I do wonder if your point about not outsourcing to save money is valid. Many companies outsource work instead of employing someone and this can be a money saver. What do you think?

http://webkit.o2online.ie/ideasroom/?p=1680

Thanks again,
Elaine @ O2 ideas room

By: Barney Austen

Barney Austen — Thu, 06 May 2010 16:47:27 +0000

Thanks for the comment Cristina.

By: KPO Services

KPO Services — Tue, 04 May 2010 10:33:21 +0000

Your article is informative and provides food for thought. There is a lot of talk about outsourcing these days. It has become an extremely important part of most industries, allowing workers from around the world to collaborate on projects that might have, at one point, taken months or years to complete. Almost anything can be outsourced now, from payroll and accounting to sales and computer programming. Offshore or domestic third parties can offer less expensive and more efficient services than salaried employees and have proven themselves to be a very useful tool for essentially any major business. Outsourcing is a product of our instant communication and a global economy. Companies without the resources or the desire to acquire those resources can now outsource almost any task they need to a third party firm almost anywhere in the world. The result is a finely tuned, well oiled machine that passes projects and ideas around the globe at light speed on a daily basis. -Tina

By: barneyausten

barneyausten — Mon, 26 Apr 2010 12:13:49 +0000

Thanks for your comment Julienne.

By: Call Center Outsource

Call Center Outsource — Mon, 26 Apr 2010 08:24:40 +0000

Thank you for your thoughts; you bring up an interesting point. I believe outsourcing is necessary in today’s business environment to save on cost. It has become necessary to cut the corner every where to remain competitive. Outsourcing can help your organization gain a competitive edge in the market. You can also get access to specialized services for different business processes and thereby provide your customers with best-of breed services. Such strategic outsourcing can give your business a competitive edge among your peers. The benefits of outsourcing can give your organization a cutting-edge in the worldwide market. Outsource and take advantage of the benefits of outsourcing.

Julienne

By: Do your projects make you money? | MyProjectTracker - The Blog

Do your projects make you money? | MyProjectTracker - The Blog — Fri, 16 Apr 2010 07:08:57 +0000

[...] project was a loss leader and could have considered other options e.g. hiring in a contractor or outsourcing to another company. Obviously not always an option, but at least the management team would have been [...]

By: barneyausten

barneyausten — Thu, 01 Apr 2010 16:59:22 +0000

Hi Ricardo. Thanks for reading and for your comment. You have exactly the right approach to your decision to outsource. You know what you can do, you know what you can't do and base it on that. This will only help your business to grow in my view.