Monday, February 19th, 2018

Outsource Services

What is Outsource Service?
Outsourcing is where one company contracts work out to another company or to an individual via an agency. This may be done between an entity, company or government department and the outsourcing companies where the outsource service provided could be done by their own in-house employees. Many jobs are now outsourced such as email marketing, call centre services, business processing, web development services and a wide range of employment industries. These outsourcing companies are often located overseas. While outsourcing may sound as if it is only for major companies this is far from the truth. Many individuals running a small business are now outsourcing to organizations such as Elance and oDesk.

Why do people outsource
One of the greatest expenses to a company is its labor component. Businesses are often weighed down with training and retraining of staff, ongoing expenses relating to time off such as sick and holiday leave, and other employment costs. With outsourcing, the rates are considerably less and the business knows the cost on an ongoing basis.

What are the benefits?
For small businesses and self-employed people, they don’t have to employ full-time staff and can submit a contract for each and every job they require. They can contract out one or many jobs without the issues relating to permanent employment.

For larger entities it saves money and it reduces their payroll cost due to fewer overhead expenses. It also allows company management to focus on other issues while at the same time have the details taken care of by outside contractors.

What are the disadvantages?
 - Because much of the work is done by foreign organizations there may be some miscommunication due to language or strong accents.  – There are strategies to overcome this issue (see below).
 - While rare, the provider may not be the best choice and/or may pull out before finishing the task.
 - Any sensitive information is more vulnerable although an agreement is signed between both parties.

Where do you go to Outsource?
The two major organizations are oDesk and eLance and both are helpful and full of information. All that is required is to sign up and then check out the online information provided to help understand how these sites operate. Both provide videos and webinars to assist with learning a new system. It should only take a short time to become familiar with all aspects of these sites.

When posting a job what sort of information do they require?
It is really important to provide as much information as possible, even if it takes a number of pages. This is critical to the success not only of the job but also the ongoing relationship. If all information is not provided, then tension arises and misunderstanding occurs. This result is an unsuccessful outcome which neither party wants.

How do you choose and what do you look for?
Once the job is posted then emails from applicants are sent to you with details of the experience and their offer. Logon to the site and check out the information that is provided. For example in oDesk, click on preview profile which takes you to a screen showing an Overview, Resume, Work History and Feedback, Tests Done and Portfolio; Recent Work History & Feedback; oDesk Tests Taken; Recent Job Applications. Feedback ratings which are very important to the serious and in fact all contractors, is provided. English Skills are included and this is one area to check to avoid communication issues.

Are you able to check their Performance?
Team Room is available on oDesk displaying a screen dump of current activity every 10 minutes for the contractor. The facility also provides for staff within your company to be on the system so you are able to observe their regular activity too. A very useful tool!

Are there any guarantees?
It is important to read the agreement terms when utilizing these services. While they will not guarantee work it is important to them to ensure everyone is happy, the employer as well as the employee. So they work very quickly to resolve any issues that may arise. All contractors are seeking perfect scores for all their work as that will ensure future employment for them. Therefore they do strive to provide the very best service.

How much does it cost?
This will depend on the work and how long it will take. For example the pay for a programmer will differ to that of an admin person. When you post your job wait until the people make their offer and they will usually tell you the hourly rate they are seeking. One of the risks here is taking on the cheapest and while this may work, it may also mean they don’t have the experience. By doing proper analysis of all applicants you are more likely to make a good choice.

How do you pay?
Payment will be requested by oDesk or Elance and you will log onto their site and approve payment which will be automatically deducted from your Paypal or your nominated account on a set day. This is usually set up when you create your account. It is all automatic and very straight forward.

oDeskoDesk is the marketplace for online work teams, with the best business model for both employers and contractors. Our unique approach guarantees to employers that an hour billed is an hour worked, while guaranteeing to contractors that an hour worked is an hour paid.

 eLanceThe world’s leading platform for flexible employment helps businesses hire and manage online instead of onsite. “These days, a special website for freelancers is acting as a giant brokerage house for all sorts of business services. It’s called ‘Elance,’ and it has quite the following.” NBC


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