Outsourcing- Good for America?

90 percent of American’s have encountered outsourcing in one way or the other. The outsourcing of America’s information technology jobs to other foreign nations such as India is really good for the United States’ economy and will create new employment opportunities. Now, this is the part where you say “oh, I bet it will!”

Outsourcing or offshoring will help add about 124 billion dollars to the United States and will also create 317,367 new employment – this information is according to a study that that was conducted by a research company and was sponsored by a leading and trusted Information technology trade group IT Association of America.

Outsourcing is really far from being an economic disaster that will wash away domestic information technology as some people believe – global outsourcing helps firms become much more productive and competitive. The money produced via global sourcing is invested in the following:
• Market expansion
• New goods/products and services
• And most importantly, the money is used to increase real wages for United States employees.

Although offshore information technology services and software outsourcing has sort of displaced and might continue to displace some workers in information technology services and software occupations, the increased activity will create a wide variety of new jobs in both IT and non-information technology.

As the advantages compounds over a period of time, the United States’ economy operates a lot of more efficiently, creates more than two times the number of jobs than are actually displaced, attains a much higher level of output and also increases the average real wage. Many reports have shown that the benefits of outsourcing (especially information technology) sure contributes significantly to the real United States’ gross domestic products – in 2003, it added 33.6 billion dollars.

There are so many people who have been belly aching especially when they hear the word “outsourcing”, but the truth is that it is not ruining our economy, it is actually helping it for crying out loud! Outsourcing is really a vital link to effectiveness and labor market flexibility. It is important to have some freedom to outsource because whether we choose to believe it or not, the target of outsourcing changes over a period of time.

Outsourcing can really save on cost, increase efficiency, improve company flexibility, help improve company focus – for smaller companies, it would help to level the playing field with large corporations and also reduce business risks.

Outsourcing – How Does it Affect the American Economy?

How outsourcing has an effect on the United States economy has really been an issue of great debate. People in the political right will agree that outsourcing has a positive effect on the American economy, because it saves money for organizations and also opens doors of opportunities for greater entrepreneurship in America and also leads to American citizens holding higher level work. A lot of critics believe that hiring foreign employees has a real effect on the United States economy by stripping a lot of Americans of the work they would have performed, specifically by semi-skilled labourers. Actually, the way that organizations are taxed based on outsourcing might reduce a business’ tax debt and therefore decrease federal spending.

People who totally support outsourcing say that the dropping expenses of organizations will help create more jobs. There are a lot of government agencies that even outsource some of their tasks, which in turn saves them millions of dollars – this is in fact has a direct effect on federal spending and United States economy. Okay, general theory argue that having the ability to pay people lower salaries for work simply means that organizations will be able to produce products with less expense and also transfer this saving to clients or customers. Reduced prices may also mean more consumers spending and business will be able to hire more employees in the United States because they are now paying less for employees outside of it.

In additional, a lot of individuals argue that offering jobs to employees in developing nations also help improve those nations economically and helps to increase trade for United States products. It also helps to increase the developing country’s ability to pay back debts owed to America, and may actually promote a much better political relationship. Organizations are known to economically benefit by providing their products in other countries. Now, this simply means that organizations can now hire more workers in the United States, reduce their rates on products for American consumers.

When searching for offshore outsourcing partners, it is very important to search for reputable ones. Because there are some cases where outsourcing companies are known to put their employees through pretty hard conditions, if you find out that the outsourcing company you are interested in hiring a company that has a reputation for making their employees work in harsh conditions – that will be your cue to beat it!

Choosing an Outsourcing Provider

In order to ensure that you choose the best outsourcing provider to have your work projects effectively done, you will of course need to compare each alternative’s track record, price and work history in your particular area of business. For instance, if you are hiring a Java programmer in order to handle a specific project, you may wish to find a person who has also worked on similar projects in the past. You should also make sure that you search for an outsourcing firm that offers very fair rates, can provide good references and also has proof of past work done.

You need to outsourcing providers may include firms that subcontract freelancers to a variety of companies. These that companies that search for a team of self-employed people and simply offer their services to other businesses. These freelancers are usually the workers for the contracting company, or these freelancers may work as independent contractors. Well, it is certainly no secret that the outsourcing company will typically mark-up subcontractor’s price, so that they can make money. The freelancer may be charged a fee in exchange for having the company help them in finding work.

When you are searching for outsourcing providers, you also need to consider that a lot of middlemen companies are known to charge a much higher rate than if you worked directly with a freelancer. Utilizing the services of an outsourcing company sure has its benefits as well. You are sure that the freelancers working with the company have been thoroughly screened for quality and of course fair pricing, way ahead of time, and you will most likely be matched with a worker who will best meet all of your requirements.

In order to find top outsourcing providers, you need to start by contacting both the middleman companies and or self-employed experts directly. You will also need to discuss the upcoming tasks with them and also narrow down your options which will be based clearly on who has the most experience in that particular area. You should never fail to see samples of previous work done from each option, basically any work which is related to the project that you will be doing.
There are a whole lot of benefits to outsourcing work, the most important one being cost – with the present global financial crisis, saving a couple of bucks is not a bad idea. Hiring a full time employee these days will cost you an arm or leg. With outsourcing, you can cut costs on health benefits, vacation time and other expenses.

Is Outsourcing Good for America? – Oh, Hell Yeah!

Everyone outsources! Unless of course you are Robinson Crusoe (you reside on a deserted island on your own). C’mon most of us outsource repairing our vehicles to our mechanics. We outsource the mowing our lawn or running of errands to some teenager who leaves down the street or pay a professional gardener.

In a nutshell, outsourcing is not just good but great – we simply cannot do everything all by ourselves. You really do not need to own a cow if you want milk, if you catch my drift. Thanks to the fact that industrial revolution was solidly built on increased specialization.

Really, the controversy over “to outsource or not to outsource” is totally xenophobic and protectionist! Certain people think that outsourcing is totally great…wait for it…as long as it is carried out by American indigenes. But these certain people believe that if foreigners do the outsourced tasks, then it is a definite no-no – particularly if the people handling the outsourced task are of a certain color. If that is not racism, I honestly do not know what is! Their borderline racist behavior should NEVER have a place in a globalized economy.

When top footwear companies outsource its manufacturing to a plant in the heart of Malaysia or a top bank outsourcing its customer service to a call center located in India, the American customer totally wins, how?! We get cheaper goods and also help to create markets for products and services abroad as well. Keep in mind that the United States has a colossal trade surplus in services and IP (intellectual property). Unlike manufacturing, people in countries with growing are the ones that can afford IP or services – so, it is really in the best Interest of the United States to assist other economies through trade. You need to understand that the United States is helping these countries through trade and not aid, which is the best way to create a universal economic expansion.
One of the myths of outsourcing that really drives me nuts is that programmers in the United States are losing their work to offshore outsourcing companies. This is absolutely ridiculous, think about it, No American C++ or Java programmer who knows his or her onions has had their job outsourced. But if you are a COBOL programmer and you have been too lazy to have your skills updated, then you might be at risk. Well, look on the bright side, you may not be at risk because the COBOL market is shrinking fast and the Java market is growing rapidly.

Outsourcing is good for America and it is also good for nations that also take part in becoming our off-shore partners.

Outsourcing – Success Tips Part 1

One needs to understand that outsourcing success really depends upon how well one manages the process before and of course after the outsourcing contract is signed. A lot of companies are known to award outsourcing contracts to the lowest bidder without taking some time to understand what it really means to the business and they also outsource without performing a complete vendor selection process. So when things start to go south, such as missed delivery dates, quality problems arise or awful customer service, the blame-game card is played and everyone start to run for cover.

Well, the following tips for successful outsourcing will sure help you make sure that your organization succeeds in outsourcing and that you will achieve desired results.

1. Make Sure That You Outsource for all The Right Reasons
When you take a bad business process and outsourcing, what you actually do is to make the problem a whole lot worse. Look, you have to understand that an outsourcing company should add great value to your business, but they should not in no way be relied upon to fix the issues that are inherent in your business. For instance, if your Information Technology (IT) department is regularly missing deadlines because the users keep changing their minds, when you outsource this function, this will surely result in much higher costs and higher of course higher levels of frustration.

2. Careful Vendor Selection Process
According to a recent outsourcing report, 35% of executives who responded said that they wished that they have taken more time on vendor selection and vendor evaluation before they signed an outsourcing contract. Let’s face it, most times outsourcing decisions can be a wee bit distorted by emotions and influenced also by company politics as well. A successful and thorough vendor selection process will help remove the emotions and also control the company politics as well.

3. Make it Measurable
Also, according to the same outsourcing report, 49% of the executives who responded said that they really should have defined the realistic service levels that go hand in hand with business objectives. If one does not take time to analyze and also define quality measures and or service levels, just think about, how on earth will he or she know if the outsourcing vendor that he or she has chosen is really performing up to his or her company’s standards, huh?!

Successful Outsourcing Vendor Selection Process – Part 1

Experts will tell you that the outsourcing vendor selection processes can be pretty complicated and also an emotional undertaking – that is, if you do not know how to approach it from the very beginning. Here are steps to help you select the right outsourcing vendor for your business. This guide will help you analyze your business needs, search for prospective vendors, pilot the team in choosing the winning vendor(s) and provide you with the knowledge on contract negotiations and effectively avoiding negotiation errors.

a. Examine the Business Requirements
Before you start the whole process of gathering data or performing interviews, you should first assemble a team of individuals who sure have a vested interest in this kind of vendor selection process. The very first task that the outsourcing vendor selection team will need to carry out is to clearly define (in written form) the material, service or product that you are looking for in an outsourcing vendor. Then, define the technical and the business needs as well. Also, you need to clearly define the vendor requirements. Lastly, you will also need to take time to publish your document to the aspects that are relevant to this outsourcing vendor selection process and also seek the team’s input. You should have the team evaluate the comments and create a final document.

Quick Summary:
i. Put together an evaluation team
ii. Define the material, service or product
iii. Define the business and technical needs
iv. Define the vendor needs
v. Finally, publish a “requirements” document for the team for approval.

b. Outsourcing Vendor Search
Now that you and the team have an agreement on the business and outsourcing vendor requirements, the team must now begin to search for prospective vendors that will be able to deliver the product, service or material. The bigger the scope of the vendor selection process then the more vendors you should consider putting on the table. You need to understand that not all vendors will even meet the minimum requirements and the team will have to come to a decision of which vendors you will seek more information from. Then write a RFI (request for information) and immediately send it to the chosen vendors. Lastly, carefully evaluate their responses and pick a small number of promising outsourcing vendors that will be short listed and move on to the next step.

Quick Summary:
i. Put together a list of promising vendors
ii. Pick vendors that you will request more information from
iii. Write an RFI
iv. Evaluate the responses of prospective vendors and create a short list of promising vendors

Offshore Information Technology Outsourcing Myths – Part 3 (Conclusion)

Cost of initial migration
The very best method of mitigating the concern of major upfront expenses is via a transparent and closely aligned partnership. Both parties can work together in order to construct a business case that will satisfy both sides; for instance, the initial cost can be reduced in exchanged for a multi-year commitment that will enable the outsourcer to effectively make the required investments on behalf of its clients.
• The fear of losing control
Hmm, the loss of control can be easily tackled in a similar fashion with in-house departments. There should be strict policies and procedures implemented in order to ensure satisfactory compliance. One other great way of looking at it is that the effective separation of duties via an outsourcing partner even allows for an increased, instead of diminished control.
• Intellectual property matters
In a case where intellectual property is a major concern, particular clauses can be written down into agreements in order to ensure protection. Well defined audit procedures that strictly adhere to compliance can be set up prior to the outsourced relationship start.
Other legal resources include the following:
- Non-compete
- Non-disclosure
- Copyrights
- Patents

The ROI of Outsourcing Has Not Yet Been Proved
Quite the contrary, components of ROI outsourcing has been shown over and over again. Actually, the best arbiter – The Marketplace – sure seems to have given outsourcing a resounding two thumbs up. Far beyond effectively reducing head count and staff overhead, additional advantages such as faster time to market and well improved quality of the finished product can surely achieve ROI of more than 400 percent in some cases.

These days, the question is definitely not if you will consider outsourcing, instead it is when and how do you plan to outsource.

Now that the myths of outsourcing have been explained, you will discover that there really is no cause for alarm as long as you know what you are doing. The most constant thing in life is change and it would be a real pity if you are unwilling to yield to positive change. There are still a lot of business owners who still think that outsourcing is meant for big firms and not for the small companies – well, these business owners are absolutely wrong, no matter how small your business is, you can sure take advantage of outsourcing tasks that you are not that good at so that your business can thrive.

Outsource your Telemarketing and Boost Sales

The main reason why a lot of people go into business is to make good earnings – unless of course they run a charity organization. There are times when business owners will have to spend a lot of money in order to get leads but all to no avail, and these days a lot of people are becoming flier, poster and billboard blind and a lot of people do not watch television advertisements because they are way too busy. Telemarketing has proven to be one of the most effective ways to get potential customers/clients to recognize and purchase your products and or services.

One of the things you need to understand is that handbills, posters, billboards, and TV ads will not respond to questions a potential client or customer might want to ask. As an alternative to running your very own telemarketing department, why not outsource it? If you outsource your telemarketing, especially if your business is still young and growing, you will definitely enjoy the benefits. Yes, boosting sales is usually the ultimate goal of any business venture.

The 3 Key Advantages of outsourcing your telemarketing:

a) A Motivated Staff Boost Sales
Motivated employees help increase sales, period. Top telemarketing outsourcing firms provide experienced sales people who are aware that their own success will depend on their dedication and skill in getting their client(s) the results that they desire.

b) Get Results!
Are you one of those business men or women who do not have the time to deal with personnel and management issues, but only want to get results in your sales department? Then, you will need to outsource your telemarketing needs. The only worrying you will have to do is about getting results from leads, sales and so on. A lot of business owners know that recruiting capable and reliable telemarketing teams is a pretty expensive and time consuming task. When you outsource your telemarketing to a top notch outsource service provider in order to increase sales, you are sure of getting results because the firm will make sure that they recruit and choose a telemarketing team that will be very suitable for your project.

c) You Do Not Have to Deal with Excuses (Yay!)
When you outsource your telemarketing to a competent firm, thankfully, you will no longer have to deal with the following excuses that a lot of workers often provide:
• My car broke down on the street!
• I got held up in traffic!
• I missed the bus
• My dog hid my car keys – well, this excuse is much better than “my grandmother passed away” (for the fourth time?!)
• My kid is ill and I had to take him/her over to my mother’s
• I caught a bad cold etc, etc, etc,

A typical worker’s excuses do not end there – nah ah! You will also have to shell out some money too (something about sick pay?). Yes Siree! Outsourcing sure sounds like music to your ears now, or doesn’t it?

Outsourcing Telemarketing – It’s Common Sense!

With the current global financial crisis, every business man or woman would search for ways to cut down the cost of running their businesses. Do you know that some people think that outsourcing is a complete waste of money? Outsourcing services will certainly allow your business to really take advantage of infrastructure, staffing and language capabilities so that your business can reach prospective clients. Do you know that telemarketing is one of the effective ways of informing people about your product and or services? A lot of people are becoming oblivious of posters, banners, bill-boards and other in-your-face kinda advertising. No matter how colourful or sharp your outdoor advertising posters, billboard and banner may be, people do not seem to be aware of them especially in big cities where everyone is of course rushing off someplace. Posters, banners, billboards and the likes will not be able to answer questions that potential clients or customers would want to ask, but your telemarketer can!

Anyone who handles a telemarketing team knows for a fact that it is not a job for any ole Okie from the Muskogee, because it requires considerable experience and expertise, which is why it is a pretty good idea to outsource your telemarketing – just leave it to the pros!

Competent Telemarketing Companies Have the Following Attributes:

a. Experience - When you outsource your telemarketing in order to boost sales, you are certain that you are of giving the job to the people who have enough experience in the business. Telemarketing firms are superb at producing results and getting top notch phone scripts, they are also pretty good at doing the following:
- Increasing sales
- Setting-up calling tactics
- Gathering the information of potential customers/clients over the phone

b. They Know and Follow the Rules – Telemarketing firms do not only know the rules but also follow them concerning phone solicitation, which has been laid down and enforced by state, federal or international agencies. You can also count on the fact that telemarketing firms are bang-up to date on ever changing laws – this will of course prevent your business from inviting any kind of potential liabilities.

c. Break Barriers and Solve Staffing Issues – Outsourcing your telemarketing in order to boost sales, will keep you from worrying about hiring and training additional sales staff so as to fill temporary positions in your company. Another wonderful thing about using telemarketing companies is that they will afford you the chance to reach out to clients/customers in different time zones who naturally may speak a totally different language. If you want your products and or services to attract international clients/customers, or if you just want a 24 hour a day call center facility, all you have to do is to outsource your telemarketing and you will also discover that it is by far, the most cost-effective solution to growing your business.

The ABCs of Outsourcing

Are you seriously thinking of outsourcing? Well, if the answer to this question is yes – this is the part where I say “Yippee Kayee!” The great thing about recognizing the opportunity of taking one’s business to the next level is a greatly admired characteristic in any business owner. Whether you own a small or big business, you will need to know the basic reasons why you need to consider outsourcing and understand why it is perfect for your business.

A Good Choice
When business owners think that their tasks can be successfully done, they immediately think of outsourcing their work. Another key reason why business owners should outsource their work is because it is much cheaper to do this. Thanks to modern technology, there is an invisible divide in the continents of the globe. In most developing countries the work force is a lot cheaper and in most instances also highly educated. One of the many reasons why people need to outsource is because they have large volumes of work and if it is more than they can handle in the shortest possible time, they choose to outsource it instead. These days, outsourcing work is a must if you want to grow your business without investing so much money on the newest tools, equipments and other resources.

Better Quality and an Affordable Cost
When business owners decide to outsource work, they will of course outsource the job to an outsource service provider who should be better at doing the job than they are – and at a much cheaper cost. It is important that you search for a company that has a good record.

Customer Satisfaction
Outsourcing groups immediately get on the task the very minute it comes to them, as soon as they are done with the job, they simply send it back to the firm – pretty simple and fast huh? The faster deliveries of tasks can also result to increased customer satisfaction, especially when a customer’s needs are totally being met speedily and successfully. One great thing about offshore outsourcing is the fact that work may continue on the outsourced tasks if the other country is operating on a totally different time zone – this can enhance the quick delivery of assigned projects and results.

Outsourcing will certainly enable a company focus more on their core competence areas. It will also free the company from the labor and resource intensive tasks, which are successfully performed by very well trained personnel and also at a very affordable cost.