The Ins and Outs of Outsourcing

Scores of businesses are taking advantage of the power of outsourcing everyday. Maybe you’re wondering if outsourcing could benefit your business too.

What prevents many entrepreneurs from taking advantage of outsourcing is the feeling they can do it all, and that they want to control everything about the business. While control is obviously important, giving up some of that control can yield big benefits in the long run. Essentially, outsourcing allows you to focus on growing your business, increasing productivity and generating income – things you can’t do if you’re constantly caught up in day to day activities.

Outsourcing allows you greater flexibility, cost savings, and the ability to farm out the tasks at which you’re not necessarily an expert. Certain tasks, while essential, don’t need to be performed by you, such as answering customers’ phone calls. Hiring a virtual receptionist might prove an excellent move in freeing up your time to spend on more value added activities.

Technology has empowered us in many ways, including enabling many professionals to work from nearly anywhere in the world. In addition, many extremely qualified professionals in just about every field are offering their services, many of whom have left the corporate world by force or by choice. These include virtual executive assistants, freelance writers, marketing directors, graphic designers, paralegals, web designers, bookkeepers, PR directors, and IT specialists, to name a few. Because these individuals work as independent contractors, employers save on health insurance benefits, payroll taxes, as well as physical office space.

So, when is the right time to outsource? Often, business owners may decide it’s time to outsource when they’re taking on a new project or client, and they find themselves overwhelmed with day to day activities, or when they need additional help, but not so much that it warrants hiring another employee.

It’s important to do your research. Don’t farm out a task just because you don’t want to do it. Look at your company’s strengths and goals carefully. Consider the fact that most tasks best outsourced are those that require highly specialized knowledge, such as web or graphic design, or that are highly repetitive, such as answering phone calls and other receptionist duties. Use your established networks of business associates, customers, vendors and the like for finding reliable, quality talent, as well as the host of outsourcing websites available. Communicate your expectations clearly so everyone is on the same page, and you get the most for your money. Also consider that hiring the cheapest talent isn’t always the best route. We’ve all heard it before; you get what you pay for.

Of course, outsourcing is not without challenges. Working with offshore providers can present language barriers and issues of different time zones. Also, the biggest challenge may be knowing that you are giving responsibility for part of your company to someone else.

Outsourcing is dynamic in nature, and should be monitored continually, and viewed as a tool to grow and tend your business. As your company’s needs change, your needs for outsourcing will expand and contract accordingly.

 The recent demise of book giant Borders is, while tragic on many fronts, also a seismic shift in the marketplace, and demands that businesses everywhere take a lesson, lest we forget, in the words of Spanish American novelist George Santayana that, “Those who cannot remember the past are condemned to repeat it.” 

According to the July 21^st entrepreneur.com blog, “What Entrepreneurs Can Learn from Borders’ Demise”, there are several factors that contributed to the failure of the chain. 

Size matters. Because Borders stores are so large, they carry large overhead expenses, including rent and utilities. That’s all well and good, given there’s also a large volume of foot traffic – and thus customers – buying books and music. But with the overwhelming trend toward virtual shopping, the volume of customers needed to support said expenses began to disappear. Independent retailers have smaller store fronts, which translates into lower overhead, which translates to more security. 

Lesson learned? Bigger isn’t always better. Even if you’re not a bookseller, the logic still applies. If you’re a business owner with a physical location, think long and hard before you build or rent a bigger office. Do you really need it? Or can you make do with what you’ve got? Could certain employees telecommute? Could you offer more products online? Think outside the ‘big box’ concept. Remember, often less is more. Maybe Borders would have survived, albeit a bit longer, had it adopted a plan to close stores gradually, proactively, instead of being forced into it. 

Work it. Borders had hundreds of square feet of store space, but rarely used it for anything other than book displays. What could they have done with the space? What about hiring bands? Putting on cooking demonstrations? Debates? A coffee klatch? Poetry or book readings? Perhaps this is a case of Borders resting on its laurels – just because it’s Borders doesn’t mean it’s all that. Advertising, reaching out to the community in order to increase foot traffic – and thus customers – didn’t happen, or didn’t happen enough. 

Lesson learned? Plan to invest dollars and resources in advertising on a regular basis. It’s the old adage of, ‘you have to spend money to make money.’ 

That’s so last season. Borders somehow lost touch with the fact that the internet provides a major platform for e-books and virtual shopping. The big box bookseller never managed to develop a dominant online presence. Opinions vary when it comes to the electronic versus paper preference, but one thing is for sure – digital media is here to stay. 

Lesson learned? Stay in touch with trends. It’s not wise to jump on the bandwagon for every trend that comes down the pike, but this one was screaming, jumping up and down, and waving a red flag for at least a decade. Don’t get set in your ways. Invite discussion, and schedule ideation sessions with your employees on a regular basis. Follow the market. Read industry literature. Attend continuing education classes. Network with your peers, and your competition. Be proactive, and keep an open mind.

As for the electronic versus paper debate, that’s a topic for another blog.

Customers can make or break a business.  Ever heard the saying, "Your only as good as your last customer's impression"?  Your last customer should have the same impression as your first customer.  They each should be able to tell the same story in their own way.  Many businesses fail to listen to the needs of their customers and in turn damage their own reputation by not making the necessary adjustments needed to keep their customers happy.  Although you can't please everybody, you should be able to at least stay consistent.  I would equate this to going to a restaurant every time and ordering the same burger.  It would be a shame if the burger tasted differently every time.  Many people order the same thing every time because it either does one of two things:

1. Taste the same as it did before or, 
2. Taste better !!

Your customers should know what to expect from your business or at least compliment that its better than before.  Chameleons are known for being animals of adaptation primarily for self preservation and that same concept can be applied to many businesses out there.  However, our customer service should be noticeable and stand out in the best way possible.  The goal for every business should be to remind the client that they are at least consistent, or better than before.  Businesses, like Call Desk, who work for many different offices must maintain consistent customer service.  It is how they set themselves apart from other virtual office solutions.