Outsourcing,101,Thereare,defin DIY Outsourcing 101
When starting a new work at home business it is very easy to become consumed by it. We spend so much time trying to get the business up and running that we may end up becoming burned out and lose our motivation. There is so much to learn and Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-parent:"";mso-padding-alt:0in
Thereare definite advantages in outsourcing but only in doing it right.Outsourcing is a dangerous playground especially to the unwaryexecutive or corporate counsel. It is a make or buy decision appliedto your companys information systems and technology functions. Shouldyou hire your own systems staff, acquire your own facilities, developown systems, maintain owned hardware, develop documentation processes,contract your own telecommunications network, etc.? Or should I leaveit all to outsourcing firms who have already achieved the so-calledeconomies of scale, attracting the best full-time systems professionalsand get the most processing power and developmental capabilities andtools for the least per unit cost to do the job for me? Pros and Cons Thepromises outsourcing is very attractive due to the continuedcost-cutting measures employed by the companies, downsizing, reducingsoftware development backlog and re-engineering like the following: improved service and performance;expert resources and staffing;shorter systems development cycles;better management control;elimination of personnel problems;stabilized or reduced costs;improved business focus;possible "tax" advantages; However, opposing realities and factors also put limitations and frustrate such anticipated gains: nickel-and-dime syndrome ("I have to charge you extra for this, and this, and that");contract termination problems;inflexible contracts that limit your ability to accomplish your stated and changing business strategies and objectives;loss of control over your key information resources;ineffectivecorporate or project management - they're no better than you in runninga business (i.e., fighting their/our bureaucracy, turnover, etc.);lossof in-house expertise (including the fact that while it only takes 3-6months to dismantle your corporate data processing department, it takes3-4 years to rebuild it);conflictof interest (when push comes to shove, they make a profit by servingmany customers and their own management - at times, possibly to yourdetriment); Withall these factors coming into play, it is very important to choose theright outsourcing vendor and the relationship be managed correctly.
Outsourcing,101,Thereare,defin