Outsourcing is common and has been part of human history ever since the start of civilization. Once people realized they could barter or buy services or products at a lower cost from someone else than producing the product or service on their own, outsourcing started. Over time the range or distance of outsourcing simply increased. Nowadays outsourcing is worldwide.
Today manufacturers outsource their manufacturing to international firms or construct their own manufacturing plants overseas. Considerable data entry work, animation, human resource management, and software programming are outsourced. Many companies have outsourced their customer or technical support.
In many cases, the design, research, marketing, sales, and direct client relations are still performed in the USA but the actual product creation or services are performed in places like China, India, Philippines, and so on.
Nowadays you can outsource many tasks easily and efficiently with the help of e-mail, inexpensive telephone calls, facsimile, video conferencing, and so on. You do not need to be a "big business" to outsource.
If you decide to outsource some work, here are a few simple suggestions:
Finding a service provider (the person or firm doing the work for you):
Finding a service provider can be as simple as searching with specific keywords in your favorite online search engine. You may also consider using an online business or resource, which has a collection of service providers (i.e.,
http://www.elancers.com, http://www.builderitworldwide.com,
http://www.IDDSource.com,
http://www.neoIT.com, or http://www.accounting.com). Some of these businesses cater to a specific outsourcing need (i.e. web site design, data-entry, architectural, engineering, etc). A few of these businesses provide more than a simple referral service. Some may provide representatives who will help facilitate your relationship with a new service provider.
Service providers may have offices in the USA. The USA-based employees may perform research, marketing, sales, and client relations while their oversea main office completes the design or manual work. You should determine if the service provider has USA-based representation and the scope of work this representative is capable of doing for you. The cost difference between a service provider with USA-based representation and one without USA-based representation may not be significant. You may prefer working with the USA-based representative rather than with someone 8,000 plus miles away and in a time zone 12 hours off. Plus, a USA-based representative may be a better communicator. Good communication is of extreme importance and value when outsourcing.
Some providers will actually adjust their hours to coincide with USA/European hours and some provide 24 hours of service. Many providers are willing to adjust simply to acquire your business.
Consider your commitment to outsourcing. There are various ways to outsource. For example, you can outsource to another firm or you can essentially "hire" your own employees in far away places.
Many firms will gladly accept your work and have someone in the firm complete it. The next time you provide work, the person who performed the work the last time may not be the one working on your work again. A good service provider will at least make sure the previous person, if available, communicates with the new person. Continuity may be an issue but most providers are aware of this problem and do their best to mitigate it.
The second option would be to "hire" your employee. In this case, the service provider provides your employee, helps train him, and provides him with the necessary tools (i.e. a computer workstation with relevant software), employee pay, and benefits. The employee is dedicated to your company. The drawback is in this case you often need to commit for an extended time (6-12 months) and the billing rate may be higher. However, the positive side is you effectively have your own employee without all the employee concerns and overhead costs.
Timing:
Start working with a service provider before you are too busy and well before a project needs to be completed. Many service providers will provide a free trial run or will work with you, free of charge, to setup the necessary processes (data exchange, billing, etc) and communication channels (e-mail, facsimile, telephone, ftp, etc). Developing a relationship with the service provider and preparing for future outsourcing projects will probably not cost you anything other than your time. Don't wait until you're too busy to deal with the problems that may arise.
The natural tendency is to keep work within the office when the workload drops. Outsourcing during these times is usually not considered. I would suggest thinking differently. At a minimum this is the perfect time to set up a relationship with a service provider. You have the time to research and test service providers.
I would actually go as far as suggesting that a slow time is a perfect time to outsource. Your firm can underbid your competitors and acquire more of the available work if you have an effective outsourcing relationship developed.
Your first project:
Do not expect the service provider to immediately understand what you want and how you want it. Initially you will need to spend more time and effort than you may think its worth ... especially if you are capable of performing the service yourself but are outsourcing it because you're attempting to cut costs and/or do not have the time or necessary employees.
Treat the service provider as you would treat a new employee. You need to train the provider in your way of doing things. A good service provider will hopefully ask valid questions before investing too much time doing something you may in the end consider wrong. A good service provider will try to build a professional long-term relationship with you even if you only have one project you are currently intending to outsource.
Take the time to provide all relevant information. Have a good idea what you want and how you want it. If you have samples of previous successfully completed projects, provide them in hardcopy and/or electronic copy. If you do not have samples available, you may be able to provide samples done by others or at least a wish list. You should provide your standards even if you consider them industry standard ... even "industry standards" can have multiple interpretations.
You're not in Kansas anymore:
What you may consider normal and obvious may not be normal and obvious elsewhere.
A good service provider will be aware of the American concept of time and will be aware of American business ethics. However, you may need to be a bit more persistent or proactive than you are accustomed to being.
Although many service providers, who provide outsourcing services, speak English, the type of English can be unique. Most errors are probably due to poor communication. When you are communicating with a service provider you should be repetitive and clear. Ask the service provider to reiterate your instructions in their own words.
In some cultures it is more common to agree or say they can handle a task without really understanding what they agreed upon or without being able to handle the task. The thought often is to simply get the work and figure out the work once they have it.
Repeat, Repeat, and Repeat:
When you give instructions to a service provider don't expect that he understands the instructions as you do. To you the instructions may be obvious and clear but you will soon learn your instructions can easily be misinterpreted.
Simply take the Bible or Koran for an example. For many followers their interpretation of the Bible or Koran is obvious and clear but obviously others have other interpretations and strongly feel their interpretation is the obvious and clear one.
Once you have stated your instructions to a service provider in either a verbally or written form have them reiterate your instructions in their own words. At times it is amusing to find out how your instructions can be misinterpreted. It is better to be amused now than not spend the extra time and be frustrated later when you find out your instructions were misinterpreted.
Although there is more that can be said, the real learning begins when you actually try outsourcing.
Erik Scheller is a Registered Professional Civil Engineer in the State of California, Returned Peace Corps Volunteer, Rotarian, and founder of International Drafting Design Source
(http://www.IDDSource.com), an engineering and architectural drafting and design collaboration outsourcing service, which facilitates relationships between engineering and architectural firms with other engineering and architectural firms worldwide. He has lived half of his life overseas and has a passion for travel and experiencing new cultures.
