Monday, September 6, 2004

Law & Technology

Build a successful business through outsourcing

In a previous Manager's Notebook, Lisa Maini provided a general overview of outsourcing and how it can help growing companies reduce costs, gain efficiencies and accelerate time to market. Part II discusses the non-financial benefits of outsourcing and a guide for choosing an outsourcing partner.

By Lisa Maini

Within a very short period, the Internet has transformed the workforce. Companies that once benefited from collective years of proven experience and industry wisdom are now challenged with maintaining a highly specialized workforce and evolving technologies without the benefit of decades of experience.

Consequently, the established brick-and-mortar businessperson may not necessarily have the skills to conquer e-commerce; the technology expert may be unfamiliar with e-business; and the advertising guru may be unknowledgeable about online marketing and e-mail campaigns. Outsourcing to qualified, experienced professionals can be a short-term investment with long-term returns.

As a business owner, I have often fired myself from work that was outside my area of expertise or for which I was otherwise not well suited. Although I have produced several branding campaigns, brochures and websites, I am neither a graphic designer nor a programmer. Instead, I stick with my core competencies to grow my business by outsourcing these tasks to the experts. This has allowed me to focus my time and resources on the revenue-generating activities and relationship-building aspects of my business while at the same time applying the talent, technology and expertise of others for the benefit of my company and my clients.

Non-financial advantages Companies of all sizes struggle with escalating costs of full-time employees. Hidden behind paychecks are less visible costs not often considered in the decision to outsource: hiring, training, administration, benefits, absenteeism, workspace and equipment. In addition to providing sizable financial advantages, outsourcing's other advantages include:

Expertise. Harness the talent, technology and expertise of niche providers and apply best practices. Expert sources who might carry too large a price tag to employ full-time can fit into nearly any budget on a project-by-project or as-needed basis.

Management. Focus on the core aspects of your business and leave the worries of non-core activities to someone else without having to commit additional managers or your time to manage a project. Outsourcing companies have their own management.

Personnel flexibility. Hire specialists without being obligated to keep them on when they are not needed. It is easier to terminate an outsourced relationship than to lay off full-time personnel.

Capital conservation. Concentrate financial resources on core business activities instead of investing capital in overhead such as office space, computers, etc.

Time savings. Don't reinvent the wheel. Someone, somewhere has done it before or developed an easy solution. Why not use it?

Choosing an outsourcing partner When you hire an outside service provider, you are essentially choosing a partner for your business. The vendor should work in harmony with your business and have the same type of work ethic and dedication to success. Some tips:

• Don't wait until you need help. Now would be a good time to find out about outsourcing resources and who has the kind of expertise your company requires.

• Be clear about what you want outsourcing to accomplish. Communicate projects, expectations, fees and timelines to your vendor.

• Use a company to help you find the talent you need. Check out several companies yourself.

• Look for flexible organizations capable of harnessing many talents.

• Identify people/organizations who have worked remotely before.

• Technology matters. In addition to e-mail, high-speed web access, etc., is their technology secure with built-in redundancy in case a file gets lost?

• Price isn't everything. Ask for referrals, and if possible demo the product or service before buying.

Lisa A. Maini is president of myMarketingManager, an Arlington-based marketing outsourcing firm specializing in marketing programs for growing companies. She can be reached at lmaini@ mymarketingmanager.com.