What Should Not Be Outsourced
With all insurance quotes online talk about outsourcing today, many companies are using it to accomplish more and more tasks. But there IS a limit. In fact, there are three of them:
Cost When it is more expensive to outsource than to do it in-house, outsourcing is a bad idea. This isnt often easy to determine. Sometimes car insuranc outsourcing expert may quote more than in-house costs because the expertise is rare and the market rate for the service is high. You might be better off hiring and training in this case. Take into account the employee training, salary and benefits vs. the outsourcing firms quote. There are some intangibles that need to be considered as well. Outsourcing may come with some expertise that you might not have in-house. How much will that save you in company van insurance out issues?
Loss of Control No matter what the project, you always want the reins to be in the hands of company employees and executives to thoroughly understand not only the project, but also the overall company goals and direction. Without that essential link, the project could inadvertently veer off in an unwanted direction. In addition, the company will be responsible for the results of the project; so it needs to be a vital part of every decision demonology The best case scenario is an every-day contact and update. When this cannot be worked out with the proposed outsourcing firm, strong consideration should be given to looking elsewhere, including in-house.
Contractual Restrictions Of course you should never outsource tasks when you are contractually obligated to perform them yourself. Check your client contracts carefully for such language and be sure you get permissions needed before embarking on any possibly conflicting outsourcing arrangement. You need to review each contract individually, not just your standard contract, as it is well within the rights of any customer to insert such a clause. Breaching this agreement could result in non-payment with little chance of legal recovery.
Youll notice that the three reasons given do not include what is usually considered a rule of thumb outsource support functions, but never core functions of your company. In general, this IS true. But there are examples where outsourcing a core task turned out to be a wise idea. For example, a paper called Pasadena Now in Pasadena, CA hired two journalists in India to cover local news and events in Pasadena.
Wait, what??
It turns out this is a highly competitive market. And since California has very open public access laws, virtually all government documents, meeting minutes, press releases, etc. can be regularly found on the Internet. Publisher James Macpherson said, We do not believe that geographic distance between India and California will present insurmountable problems and that working together with you will result in your development of a keen working knowledge of this citys affairs. This will result in accurate and authoritative news reports.
And the cost savings gleaned from this surprising action? Well, were not sure how much they normally pay reporters, but they hired these two for $20,800 annually. Combined.
When it makes this much financial sense, can you blame the company for doing it? Perhaps not. But if youre an unemployed reporter from Pasadena, CA, you might have a different view.
Michael Russell Your Independent guide to outsourcing-guided.com">Outsourcing
posted by datdk @ 6:53 AM
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