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Project_Outsourcing
| Project Outsourcing
OUTSOURCING: AN OVERVIEW Businesses of all kinds can and do
benefit from the tool of outsourcing every day. The businesses
that use outsourcing as a tool to enhance and grow their
business already know the value that outsourcing brings to their
organization. The organizations that have used outsourcing for
many years know that with the positives it brings to the
organization that it is also important to have a well managed
plan of action for hiring a consultant or contractor for a
business task. This includes deciding which projects or tasks to
outsource, whom to hire for these tasks, how to manage the
project, how to agree on payment terms, and how to achieve the
desired results. There are many forms of outsourcing ranging
from outsourcing payroll to outsourcing package handling, to
everything in between. Small businesses hiring a self-employed
accountant to handle the corporate tax returns are in essence
hiring a tax consultant. Large corporations that hire outside
customer service firms to handle their customer support are
outsourcing that function of their business to focus more on
their core business functions. It is entirely possible to
outsource practically every business process within an
organization. OUTSOURCING TOOLS There are a wealth of tools
available for the organization looking to outsource business
processes. Companies such as SmartyLance.com, enable a business
to post a project to a project marketplace and receive bids from
experts in the field. These type of freelance sites match
companies with freelance professionals, consultants, and
independent contractors. There are many advantages for a
business to use services such as SmartyLance. First, the
marketplace enables businesses to use a centralized location to
post their project, receive bids on that project, communicate
with potential providers, choose a winning bid (either based on
lowest cost or based on the credentials, expertise, or prior
feedback of a particular provider), manage the project
specifications, receive the delivered project and make final
payment based on the terms of the auction. This centralized
marketplace provided by SmartyLance greatly streamlines the
entire outsourcing process and enables the business owner or
manager to have greater control over the entire outsourcing
process. INCREASING COMPETITION Competition is a complicated
subject for many people. Ultimately, competition is good for the
consumer, whether the consumer is an individual or a business,
competition enables products and services to maintain high
quality and low cost. Although many people dislike competition
because it forces action to improve quality, the benefits to the
overall economy even result in improved products and services
for the very people that dismiss competition and the headaches
it sometimes brings. Freelance marketplaces such as SmartyLance
are no exception in that competition improves the overall
quality and value for the project buyer and causes the freelance
provider to adjust to market conditions in a practical,
intelligent manner to win new business. The benefits to the
company looking to hire freelancers are obvious. For example,
Company A can compile a list of consultants to work on the
design of their new company logo. This list may include a
multitude of design firms from the same geographical area.
Company A would be required to submit an RFP by contacting each
design firm individually, stating the requirements of their
project and requesting a quote based on the requirements. Many
factors come into play in deciding which design firm Company A
will choose. Chances are, that using this approach, Company A
will end up paying too much for the project and will only have a
handful of providers to choose from. Company B also must
outsource the design of their new company logo. Rather than
compile lists of design firms, which can result in overpriced
quotes, Company B decides to post their logo design project to
the SmartyLance marketplace. Doing so enables Company B to get
competitive bids that help ensure that Company B gets the most
competitive price for their project. By posting the logo design
project to SmartyLance, Company B not only reduced costs
associated with the project, they had access to specialists and
skilled professional designers from around the world that were
competing to give Company B the best cost and highest quality
design for their money. The entire process was managed easily
through Company B’s SmartyLance account enabling them to keep in
contact, manage project specifications, manage competing bids,
and send payment easily and securely through one of several
different payment methods. An escrow account enabled Company B
to ensure that payment wasn’t released to the provider until all
project requirements were met. Company B successfully outsourced
the logo design project and was able to save several hundred
dollars. They also received the project several days quicker
than Company A. In this example of Company A and Company B, we
see that Company A had limited its ability to find a skilled
professional and limited its ability to save money on the
project. Company B took full advantage of all the resources and
benefits of the SmartyLance marketplace and was able to save
time and money. By outsourcing critical business functions that
are not core business functions, the organization greatly
benefits through a savings of time and money which in turn
benefits us all through decreasing costs that are passed down to
the consumer.
TO OUTSOURCE OR NOT TO OUTSOURCE? Risks are inherent in any new
business strategy or thought process. However, like any business
decision, risk can be managed. By intelligently choosing a
provider that matches your intended skill requirements,
carefully detailing and outlining your project requirements, and
ensuring that you maintain the requirements within budget, the
benefits can far outweigh the risks. One of the more common
fears among some larger organizations that may be reluctant to
outsource projects is a fear of the unknown. This fear stems
from the inherent inability to oversee each and every aspect of
the project from start to finish and to evaluate each step along
the way. Internal employees devoted to a project are more easily
evaluated and can be guided through performance and work
appraisals. Managers may feel that outsourced projects are more
difficult to oversee and manage with an eagle eye. The fact of
the matter is that so long as there are well-defined contractual
obligations and project reporting requirements, an outsourced
project can in fact result in a more manageable outcome than
actually thought. Also, the talent pool and skills obtained that
may be completely unavailable to the organization allow the
organization to reach milestones and achieve success that may
never have been possible with their current employees. A
REWARDING CAREER Having a specialty or skill in a particular
business area can enable you to begin a career as a consultant
or freelancer. Freelancing enables you to have the flexibility
to work on your own and on your own schedule. You can choose
which projects match your skill set and decide which types of
freelance projects that you would be interested in working on.
There are numerous sources available to find freelance work.
Some sources include browsing freelance directories, job boards,
and registering with talent auction sites such as SmartyLance.
All of these resources are filled with potential jobs. In
comparison, it seems that talent auctions are the most
comprehensive resources offering the most flexibility to both
the freelancer and the company hiring a freelancer. They offer
the breadth and depth of listings and the simplicity to bid on
numerous projects as well as services enabling the handling of
the entire payment process through a service provider account
with the talent auction site. Bidding on projects requires much
discipline and planning. Before placing a bid or giving a quote
on a project, the freelancer must take into account many factors
including the length of time required for the project
completion, the budget the service buyer can afford, and whether
or not they can actually meet the requirements to complete the
project. It is also important to keep in mind that developing
relationships with service buyers can lead to more work in the
future. Developing a relationship with service buyers and
meeting or exceeding their project expectations will enable you
to develop a client base that allows you to practically always
have new projects to work on.
COMPETITION FOR PROJECTS There will always be competition in all
forms of business. Competition for freelance projects is fierce.
One of the major ways to compete and win is to make yourself
stand out from the rest of the crowd. You can start by fine
tuning your resume. This will force you to think about your
accomplishments as well as your exact skills and abilities.
There are numerous services that can help you with your resume,
including ResumeEdge. Using a service to help you with your
resume will enable you to better explain your accomplishments
and present them in a manner that will captivate and impress the
reader. Especially if you are an independent freelancer, having
your resume retooled by ResumeEdge will allow you to stand out
in a crowded marketplace. Many freelance service buyers will
wish to see a list of your accomplishments and your skills. If
you register as a service provider with a freelance marketplace
such as SmartyLance, they offer several different options that
enable you to stand out above the crowd. First, there are
different subscription levels when registering. There is a
Limited subscription, a Novice subscription or a Professional
subscription. Each higher level subscription offers more options
to the service provider. Every service provider does have the
ability to post a profile, detailing various information about
their abilities. Limited subscriptions limit the cost range in
which a service provider can bid. For example, a Limited service
provider can only bid on projects with a price range less than
one thousand dollars. Novice subscription service providers can
bid on projects less than five thousand dollars, and
Professional subscription service providers can bid on any
service level project. Several added bonuses with the Novice and
Professional subscription levels include the ability to purchase
credential verification services as well as the ability to post
“Buy Now” projects. Credential verification services enable you
to post information related to your references, certifications,
licenses, education and previous employment. Simply adding these
options to your account gives you a special designation stating
that your information has been checked and verified as being
true and accurate by the freelance marketplace. This designation
gives you an added level of credibility making you stand out
from the rest of the service providers and enabling you to
showcase your achievements and abilities, giving a service buyer
confidence in choosing you to complete their project. This will
undoubtedly lead to more work and more projects coming your way.
In addition to verifying your credentials, you have the ability
to showcase a portfolio of your previous work. This allows you
to show the service buyers your achievements and your successes
with previous clients. Showcasing your portfolio is another
important aspect that gives the service buyer confidence in your
ability. Finally, the higher level subscriptions enable you as a
service provider to offer “Buy Now” solutions. Similar to
purchasing products immediately without bidding as on major
product auctions such as Ebay, “Buy Now” solutions enable
freelance service providers and consultants to make a solution
available to all service buyers for a specific set price. For
example, a freelance graphic design firm may create a “Corporate
Identity Package”, enabling a service buyer to purchase this
package that may include the graphic design of a logo, along
with designs for letterhead, business cards, and banner ads.
Another example could be from a lawyer or legal consultant who
creates an incorporation package that includes corporate setup
and incorporation services for all fifty states, creation of
shareholder agreements, employment agreements, and registered
agent services all for a set price. These simple examples of
“Buy Now” services enable freelance consultants and independent
contractors to create easy options for service buyers who are
looking for simple solutions and quick turnaround time. Service
providers also enjoy creating these type of services because it
enables them to focus on their core interests and abilities.
Only higher level subscriptions such as the Novice or Limited
subscriptions enable freelance service providers to post “Buy
Now” projects. The beauty of these additional options as a
freelance service provider is that you can focus on one specific
aspect of your business. If you are a consultant for a graphic
design firm and you simply enjoy creating and designing
corporate logos and identities, then you can find work
specifically in this area by posting your own “Buy Now”
solution. If you are a lawyer working for your own legal firm
and your passion is new business setups and incorporation
services, then you can steer projects your way with a “Buy Now”
solution posted on a freelance marketplace like SmartyLance.
CONCLUSION These are only a few examples of the many
opportunities that exist as a freelancer. Whether you are a
small business, an individual, or a large corporation, this
article simply serves as a guide to help you in your quest to
use outsourcing to your advantage to help your business grow and
flourish. Outsourcing, when done correctly, can benefit your
business in so many different ways. The two most obvious
benefits are a savings of time and money. From the freelancer’s
standpoint, this article has been developed to help educate and
guide you with the many options available to find work as well
as to delve into the minds of freelance service buyers. Knowing
their concerns and understanding the reasons for choosing one
service provider over another will greatly benefit you by
enabling you to increase your odds for getting new business.
Understanding the concerns and needs of service buyers will lead
to your gains as a service provider. If you are able to provide
enough people with services that they wish to have, then you
will always be in demand.
About the author:
Jack Thompson is a freelance writer, business consultant and
entrepreneur. He has helped thousands of individuals and
businesses across the world realize the benefits of outsourcing.
He can be reached via email at
newsletter@businessreviewjournal.com
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