Outsourcing is defined as retaining services from an individual or company that would normally be done in house. Examples of some things that may be outsourced are payroll administration, benefits administration, accounting, information technology and website management.
It has also become common in recent years for some companies to outsource some administration and secretarial functions as well.
Outsourcing some functions makes sense from a financial standpoint for many small and medium sized businesses. If you enlist the services of a freelancer or outsource your job you only pay for the work performed.
This provides advantages and cost savings in several areas. You will not be responsible for payroll taxes, benefits, office space for the employee to work, hourly or salary pay is eliminated. Essentially you only pay for the hours and work you need.
When done correctly outsourcing can be an extremely effective way to get all types of essential duties and tasks done efficiently in your business.
There are many ways to find outsourcing help. If you are looking help with a computer software problem, need a new application or special services, check out Rent-a-Coder.
You can submit your bid request and you will get bids from experts in the field. You go through the bids and look at the credentials of the bidders and make your choice. It is easy and the results can be excellent.
Another user friendly site to find freelance help is guru.com. Same system applies, you post your project, qualified candidates bid on your job, you can request specific information in the bids, qualifications, credential, samples of work and references.
Most freelancers on this site have extensive profiles that you can access to determine the best fit for your work. Freelancers pay a fee each month to be considered premier service providers.
Elance.com is also another one that allows you to post your project and choose from a variety of professionals that will complete your work in the allotted time in the budget you require.
Outsourcing through these sites and the others out there is fairly user friendly, but buyer beware, it is easy to get bogged down in the bid process, reviewing candidates and making the selection of the vendor, if you spend too much time completing these steps it loses cost effectiveness quickly.
Time is money and the more time you spend finding your outsource help, the less money you are saving.
Also know the terms of the site you are using, know what you are paying for and from whom you are buying the service. What happens if you are unhappy with the work once it is completed? Do you have recourse if it does not get finished, sure you don’t pay but then you must start the process over, this does not save money in the long run, and it can be extremely frustrating.
If you are careful, take the time to get to know your vendors, and develop long term relationships with the outsourcing vendors you like, you can make outsourcing much of the mundane everyday tasks a successful part of your business.