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Tag: outsourcing

  • What Should My Small Business Outsource?

    What Should My Small Business Outsource?

    Micromanaging often seems to go hand in hand with running a small business. But inevitably, as organizations grow, it becomes clear that even the most diligent and efficient owner can’t do everything. This is one of the many reasons outsourcing, where a business gets a product or service from a third party rather than handling it themselves, has become so enormously popular. Not only does outsourcing of some of the non-core business functions save time, but it can also significantly lower costs, increase efficiency and can give businesses access to an expertise pool that would be expensive to hire and retain. Whatever stage you’re at as an operation, there are functions of your business you should always look to outsource. Here are some of them.

    Accounting

    Businesses cannot function without accounting. You need to track and record invoices and payments (both incoming and outgoing) and taxes must be paid accurately and on time. Keeping tabs on your finances is time-consuming, and it is never a simple matter, especially if you are growing. There are a maze of regulations and requirements to contend with, and these practices often change. It is very easy to make mistakes, and errors can wind up being very costly. If an audit is triggered, this can mean your profits are destroyed by a flood of back taxes and penalties. Accounting is best left to experts. In these digital times, accounting is one of the first tasks a small business should outsource.

    HR

    Human Resources can be a minefield for small businesses. It’s a wide-ranging term covering all sorts of business functions – hiring, firing, training, time keeping, payroll, benefits and ongoing employee management. Much like accounting, there are many regulations and obligations that must be adhered to, with stiff penalties possible where mistakes are made. Outsourcing your HR has many benefits. Finding talent to recruit can be a long process – getting an expert to do this can get the right candidates in front of you. Payroll can become a smooth process instead of a monthly hassle while ensuring accuracy – and that the right amount of tax is paid! Leave can be managed closely so you don’t end up giving your staff 40 days off instead of 25.

    Marketing

    All businesses need to market themselves to retain their existing customers as well as finding new ones. To succeed in this digital era, you need a professional website, and you need to understand how to select, buy and execute the correct marketing channels. Although there is a science to it, in marketing nothing is ever a sure thing. Getting it right is an art, and one that takes a major time commitment on an ongoing basis. Hiring a marketing agency will take the stress of creating your message and putting it in the right place. They’ll help you with your strategy, your ad design and schedule all those pesky social media posts too! They can also build you the great, content-rich site you need (together with the SEO to get it up the search engine rankings) to give your business the digital shop window it needs. You’ll also want to know how to start a blog.

    Admin

    No matter what size the organization, nothing bogs small business owners down like our old friend admin. Scheduling meetings, managing diaries, fielding questions and staying on top of your inbox can be fiendishly difficult. Simple stuff, but time-consuming as heck. Fortunately, technology has made it possible to take all these tasks and hand them over to virtual assistants. VAs are becoming more and more commonplace and can be used to handle all manner of jobs that need doing but you don’t have the time for. No matter what’s required, you can find a VA with the skills you need that can work at a time that suits you. It can be a very cost-effective way of freeing you up to concentrate on growing your business.

    Hiring The Team You Need, When You Need It

    Today, the business world requires more flexibility than ever before. There have never been more opportunities, but competition has never been fiercer. When such opportunities arise, businesses need to scale quickly, but get the skill sets they need too. Hiring new employees or appointing individual contractors can be expensive, and a huge drain on time and resources. That is why so many companies turn to team as a service (taas) providers. With TAAS, you hire a remote team of highly skilled professionals. These are used to scale your company as rapidly and when you need it. After you’ve briefed the provider on your business and your needs, you can then use them as and when you want, on whatever sized tasks are required. You and your in-house team can then concentrate on core functions while keeping control over everything. Without doubt, it’s a new level of collaborative and flexible business thinking.

  • Intel CEO: Decision On Outsourcing Chipmaking ‘In The Next Couple of Months’

    Intel CEO: Decision On Outsourcing Chipmaking ‘In The Next Couple of Months’

    Intel has had a rough couple of years, leading the company to consider what would have once been unthinkable: outsourcing its chipmaking.

    The company has had issues with its 10nm and 7nm processes, has been struggling to keep up with demand, and has been plagued with security issues, some of which have been labeled “unfixable.”

    As a result, Intel has seen its dominating lead chipped away by AMD. To make matters worse, it is losing once of its most high-profile customers, with Apple’s announcement that it will be switching the Mac to the same ARM-based chips that power the iPhone and iPad. Even Microsoft is moving ahead with plans to fully support Windows on ARM.

    These problems have led the company to open the door to the possibility it might outsource chip manufacturing, something executives would never had considered during the company’s hedey.

    CEO Bob Swan joined CNBC’s “Squawk Alley,” where he was asked how much of an impact the decision would have on margins.

    First, as we play a larger and larger role in the success of our customers, with the investments we’ve been making, with that comes a responsibility,” Swan replied. “And that responsibility for us is to provide a predictable cadence of leadership products for our customers.”

    So for us, we have a wonderful product roadmap for ’20, ’21 and ’22. And when we look into ’23, we have a decision to make, about whether to build that next generation of product on Intel’s manufacturing footprint, on third-party manufacturing footprint, or on a mix of both. And we’ve been designing our product to have the inherent flexibility to make those decisions over time.

    So in the next couple of months, we’ll be looking at what’s the right decision for 2023 products, and we’ll be evaluating a series of criteria.

    Schedule predictability—very important for our customers. Second, product performance—process matters, but so do a lot of other things, like software. And third, how do we retain some of the essential benefits of designing and making stuff for ourselves, in the event we take things outside with the relationships that we have with our third-party foundry partners. So we’re going through that assessment now.

    If Swan’s statement is any indication, the next couple of months will have long-last impacts on Intel’s future, as well as the future of the semiconductor industry in the US.

  • Should You Outsource Digital Marketing for Your Business?

    Should You Outsource Digital Marketing for Your Business?

    For most companies, digital marketing is essential to growing and retaining their customer base. Unfortunately, a lot of businesses are in the dark when it comes to implementing and managing this type of marketing strategy. As a matter of fact, an informal poll conducted by Smart Insights revealed that half of the businesses that use digital marketing don’t have a working marketing plan to go on.

    But before you hash out the details on when and where to launch your digital campaigns, you’ll first need to figure out who will get the job done for you. There are two approaches to tackling this problem: go in-house or outsource.

    The Case for In-House Digital Marketing

    A lot of companies take advantage of the abundant resources, current online technology and available information on strategies and techniques to manage an in-house digital marketing group. After all, there are several advantages to going this route, most important of which is saving money. Hiring a third-party marketing agency can be relatively expensive considering you’ll need to cover their costs as well as their “markups”. Another advantage would be having a dedicated team who knows the company’s specific goals and are working on a documented digital marketing plan. 

    However, one major problem that an in-house team often encounters is the steep learning curve employees without the relevant skill set face. More often than not, this would cause a slower ramp-up time for marketing campaigns. It’s also a sad fact that more than half of in-house digital marketers are ineffective because they learned about the system on-the-job, and did not undergo any official training.

    Choosing to Outsource Digital Marketing

    Outsourcing your digital marketing needs can be very beneficial, particularly if this task is not your forte. Tapping the services of a digital marketing group can give you several advantages, like having a team of experts readily available. This means that you won’t have to worry about a marketer going on a vacation or taking a sick leave. Your marketing needs will always come first, regardless of whether there’s a holiday or not.

    One big advantage of using a digital marketing agency is the insight it can give your business. Employers are often so consumed by the day-to-day running of the company that they don’t have time to understand the business more deeply, like studying what brings prospective clients to the site or how to optimize the company’s online presence. An unbiased set of eyes will give you a new outlook on how to handle your marketing needs. These marketing experts are also likely to be more up-to-date on the latest techniques and strategies being utilized in digital marketing circles.

    Perhaps the most important benefit outsourcing your digital needs give is that you get to focus on what’s crucial to your company. Businesses who opt to outsource do so in order to keep the marketing process separate from the company’s core operations. By being distinct, the marketers have more freedom to develop and execute winning marketing strategies and keep up with changing business needs.

    Graphic via Quartsoft.com

    Should You Outsource Your Digital Marketing Needs?

    Before you make a decision on whether to outsource your digital marketing needs, take the time to determine what you really need in terms of marketing. You should also consider the following when you begin your search for an outside marketing agency:

    • Your Company’s Key Performance Indicators (KPIs): Knowing what your KPIs are will help narrow down what you need help with and what the marketing agency can do for you. KPIs will influence the strategy the agency will suggest, as conversions, traffic, cost and revenue per lead are key KPIs for businesses. Which means this is the first question any reputable digital marketing company would ask. Consider it a red flag if the agency doesn’t inquire about it. Conversely, you should also ask digital marketing specialists what they think about your KPIs and how to optimize it. A good company would help you pinpoint weaknesses in your current marketing strategy and introduce new ideas and strategies to help you get the best results for your business.
    • The Digital Agency’s Track Record: Don’t take recommendations at face value. Do your due diligence and check the marketing company’s track record. Ask what types of clients they have handled before and their success record. Most agencies would have case studies and a portfolio on hand. But bear in mind that some clients do ask for non-disclosure agreements (NDAs). However, agencies that can’t provide a single client to show or refer should not be taken seriously.

    While there are other factors to consider, the bottom line is that outsourcing your digital marketing needs would depend on what you actually need. If you want to hit targets consistently and predictably then maybe an in-house team is the way to go. But if you want to focus all your energy on the core aspects of your business, then a digital marketing agency can save you time and offer more flexiblity.

  • Independent Workforce Update [Infographic]

    Early in March we reported on on a new infographic from Mavenlin.Com, a professional meeting space and specialized referral service, to address the issue of the growing independent workforce. If you remember, the infographic gave us some facts and figures about how many people are part of the independent workforce and also some reasons they decide to join the movement.

    I managed to get in touch with Ray Grainger, CEO of Mavenlink, and he shared with us some key insights on what he knows about the rising trend of outsourced labor and what his company does to cater to both, the individual, and the employers involved in these relationships.

    The first thing that Ray wanted to clarify is that many workers flourish under an independent solopreneur system. A main reason for that, he believes, is meeting spaces like Mavenlink that can expand on potential client lists to include all four corners of the map. Specialists are no longer limited by their geographic location or ability to travel, they can work with customers all over the world.

    Another point Grainger hoped to raise awareness on was the increased demand for collaboration spaces online, and the stringent demands clients put on him for meeting space that delivers privacy, security, and convienience tools. He explained his surprise at how particular both, employer and employees are in regard to handling the sensitive nature of their online meetings. Apparently these folks know exactly what they need and how they want it delivered, so it’s arduous job seeing these need are met.

    Speaking specifically to the infographic, Ray pointed out again that almost 40% of the workforce is facing the challenges of becoming an independent worker, but the industry is adapting and trying hard to deliver tools to make the employer-employee relationship a more mutually beneficial one. We spoke specifically about the need for employee benefits that can travel with an individual to optimize the freedom of operating on an independent level.

    Providing healthcare and other benefits that are traditionally only made affordable by belonging to a specific organization could make independent work more feasible for many professional and entice many more talented individuals in to the arena. These new insights give me hope for the rising trend of independent and outsourced work. I am happy to hear there are organizations who seek to maximize the value of the relationships rather than merely seeking to decrease liabilities and increase profit margins.

    The internet has made the world a much smaller place and we have increased access to a more specialized and cutting-edge workforce. Now we need to figure out how to best employ these folks and make it worth their while. It sounds like Mavenlink is slaving away on that endeavor each day.

    by Column Five Media.

  • Facebook Moderators Earn $1/hr

    In a recent interview, 21-year-old Amine Derkaoui described spending spent three weeks working in Morocco for oDesk, an outsourcing company used by Facebook, to moderate content. Derkaoui’s job, which payed roughly $1 per hour, was to essentially implement Facebook’s strange content standards – ie, he was to delete any pictures of “cameltoes, moose knuckles, insides of skulls” or whatever banned images outlined in oDesk’s “abuse Standards” operations manual. Derkaoui’s short career shed some light upon a seedy facet of the social networking giant, which has been making hundreds of new millionaires.

    odesk

    Other moderators, primarily young, well-educated people working in Asia, Africa and Central America, all describe similar, ridiculously low salaries. Adam Levin, owner of British social network Bebo, says that the process of outsourcing is “rampant” across Silicon Valley. He adds, “we do it at Bebo. Facebook has so much content flowing into its system every day that it needs hundreds of people moderating all the images and posts which are flagged. That type of workforce is best outsourced for speed, scale and cost.”

    About 4 billion articles of content are moved every day between Facebook’s 845 million users. Most falls under acceptable standards, but a lot also falls into catergories of pornography, racism and violence – all of which is policed by an outsourced workforce in a third world country, for $1 an hour. Graham Cluley of Sophos states that Silicon Valley’s outsourcing culture is a “poorly kept dirty secret.” Levin adds that he estimates that Facebook employs between 800 and 1000 workers through oDesk, about a third of its “regular” staff.

    With Facebook mainly consisting of acquaitances explaining pictures of their breakfast, photos of countless new babies that all look roughly the same, friend requests from strangers users knew for a day 15 years before, generalized misrepresentation of one’s actual life and face, etc., it is interesting that the actual moderators of all of this content don’t even undergo criminal background screening. According to Derkaoui, his past wasn’t looked at, and there were no security measures stopping him from obtaining user information, as well as no barrier blocking him from uploading whatever he’d wanted onto Facebook himself.

    Regardless, Facebook has a statement on the matter – “these contractors are subject to rigorous quality controls and we have implemented several layers of safeguards to protect the data of those using our service. No user information beyond the content in question and the source of the report is shared. All decisions made by contractors are subject to extensive audits.” I tend to go with what Derkaoui said.

    Still, I find it hard to believe that any information regarding the actuality of Facebook’s weak privacy standards will prompt more than a handful of its 845 million customers to actually quit.