Kategoria: Outsourcing

Outsourcing – where is the border line?

How many resources of your company can be outsourced?
Is it possible to have a company 100% outsourced? Sure! Here is how.

Rarely used outsourcing services

Outsourcing of logistics services and SEO are already very common, but many other services for e-commerce is still not often used. Few examples:
– Product descriptions
– Virtual Consultant
– Photos of products
– Accounting
Each of these services is able to effectively relieve our business by entrusting the responsibility on an external company and allows us to take care of the control of our ship. We have time for laying out the direction of development, handling relevant job.
 

What to outsource?

You should adopt the principle of outsourcing everything what is cyclic, repetitive or schematic. If a person repeatedly, at a specified time, performs the same function, that is, that script or integrator can do it, and when this opportunity will be too costly to implement (ie. Too costly to automate warehouse operation), then you should outsource it out determining the exact rate of one cycle, eg. for the pack, listing document, clicks, delivery and so on.
Thanks to this action we singling predictable costs, which can be easily included in the unit cost of the project and in this way to calculate profitability of the project. We eliminate the risks and let us do the development and marketing.
 

What not to outsource?

With the development of technology and the scope of e-commerce specialists the number of such cases decreases rapidly. While what to leave to operate within the company tasks that require knowledge of the development strategy of the company and its confidential information. Generally speaking, leaves the job that suited the course of our company.
Of course, even this task can instruct with the relevant clauses of confidentiality, but it is not very secure solution.

Some tips

A few tips about outsourcing:
– Never delegate things, which you did not see fit to be necessary. Allowing contractors loop unnecessary work intensifies costs rather than eliminate them.
– Establish measures and targets in the contract. Never bring to the situation that you have to rely on the competence of the people, so the numbers eliminate this problem.
– Expect detailed reports. No need to check their on your own, but they give countable picture of the effectiveness of the contractor.
– Have a lifebuoy. What if the contractor fails? You must be able painless withdraw from the agreement at the end of it you pay for it, so you bet conditions.

Why outsourcing is better than hiring?

Does one-person business can generate profits equal to big corporation offering the same products or services? Of course. I’m going this direction with my own business and skillful task put outside give greater stability to the company’s development and almost unlimited scalability.

Contract form

What’s the difference between outsourcing and hiring people? Likewise we entrust selected responsibilities in the hands of strangers. Between the employee and the contractor the difference is only in the form of a contract. We employ the employee on a contract of employment, which is imposed on us by various forms of restrictions and don’ts. We are slaves of the law and we can not establish a convenient forms of cooperation, we remain the only civil law contracts.

Apparent costs

Outsourcing generates seemingly large costs, which can create the appearance that the employee’s employment will be less expensive. I want to refute this thesis on a simple example:
Assume that the check profitability in the period of 6 months of advertising service on Facebook.
We employ an employee for 3000 PLN net. The cost of its job, together with taxes and contributions is approx. 5077 PLN. Counting the cost of maintaining the office for one employee (cleaning, electricity, water, computer, maintenance, etc.) we add about 300 PLN per month + cost of accounting services (personnel, payments) is an additional 100 zł. In total, this gives us 5477 PLN per month. It does not include the costs of implementation of an employee, because of its efficiency will become the expected momentum after 2-3 months.
For this amount, ie. almost 5.5k PLN net you can rent one of the best interactive agencies in Poland with a performance guarantee of work and the possibility of withdrawing payments when the founding agreement will not be made, what makes us virtually assured of proper work. No training, implementation, health and safety regulations, the Human Resources department, water supply, heating and coffee etc.

Responsibility

With outsourcing we buy a lack of accountability. We do not need to care about it. We have established targets, we paid, we are waiting for results. The end. In the case of employment an employee we must constantly supervise his work, enforcement of lost money due to incompetence of the employee is under Polish law extremely inconvenient (but not impossible).
Employee performance is unstable, dependent on a multitude of factors. We are human beings, we have the right to make mistakes, have a bad day. When you oursourced your task – it makes no difference for you. You pay for results, not for the commitment. We are not interested in humor counterparty or its mode of operation and internal culture of the company. We expect results.

Deadlines

In this matter, the employee has the opportunity to win the battle. Employee is right there, we can toss him other task in the meantime, motivate him to do better, give him a reason for higher performance and get better and faster results.
There is only one but – it is not possible to calculate or predict. Man is variable. When outsourcing – or get a particular effect or nothing to pay for. In the case of an employee – or get faster this effect, or anyway we pay for it. Notwithstanding effect.

Scalability

Hiring is expensive and time consuming. Finding partners may be, don’t have to. When we need to increase the scale of the business, we flip the creation of this scale on a contractor to create an annex to the contract giving it new parameters for performance, and he will have to hire additional people to the increased workload.

Qualifications

Using the resources of partner we are sure about staff qualifications, and if not – it costs us nothing. Employing workers directly, we take full responsibility for how they work and whether they show up with the necessary skills. In resume people can type anything, but the agreement with the contractor does not provide such opportunities, because its fracture does not generate costs for us. A worker costs always, even when it is bad.
A verbal contract isn’t worth the paper it’s written on.
~ Samuel Goldwyn

Long story short

Let’s create a stable businesses, let us at controlled improvisation. Explore the market with a lifebelt. Outsourcing gives us such possibility. It is time to run away from the traditional model of the company, which tells us to trust people. Building a business based on the competence of the people is so unstable that it is not even worth trying. Feel free to use the companies and institutions that specialize in exactly what you need and we can get a perfect product, often above our expectations.