Outsourcing Do's and Don'ts

OUTSOURCINGDo’s and Don’ts

DONN FELKER ENTREPRENEUR / DEVELOPER / AUTHOR

OUTSOURCING - What is it?Experience - Why - How - Questions

It’s MORE than offshore ...

landscaping pool care exterminator car wash OTHER TYPES OF OUTSOURCING

MORE COMMONLY SOUGHT AFTER accounting development virtual assistant

My Experience

Place a dollar amount on your time.

landscaping pool care exterminator car wash Great places to start

I needed help with...accounting virtual assistant development logo design

Accountant : LocalVirtual Assistant : India Development : Armenia

Finding an Accountant Referral is best t least one yon e knows a e ever seems lik Quickbooks is key s know this ll ac countant almost a... when all else fails, Google

Accountant : One Face-to-Face r y once, eve yup, onl Tools : Quickbooks Online : Email : Phone : Scanner : Mobile (with Camera)

How Much Do They Cost?I go local with accountants, so... standard rates.

What does a Virtual Assistant do? Basic bookkeeping Research in a known domain Email Management Calendar Management and more...

Finding an Virtual Assistant Learn from others (Ferris) e elseor anyon Again, Quickbooks is key inator comm on denom lowest more

Finding a Virtual Assistant Brickwork India : brickworkindia.com Your Man In India : yourmaninindia.com Friends with : F-1 & H-1 Visa’s Local VA’s : Craigslist ... and more ossible,us e a firm if p such as ..

Tips for Finding a Good VA Be clear and very specific in your tasks Specify the skills required nd Find 3-5 possible VA’s nt to fi l vestme VA wil al in “great” ensiveiniti d a xp fin ore e to usua lly b em Award 3 of those VA’s the same job. Pay them all. Award the best the continuing work.

How much does a VA usually cost? It varies, depending on job nth 0 transac tions a mo ~ 40 example: average of My VA performs bank account reconciliation,transaction matching and item categorization in Quickbooks online. Price: $250.00 for 20 hours ($12.50/hr) round 0 hour contract a I re new my 2 onths every 3 m

Estimating the total cost of a VA Total Price + 30% = Total Investment$250 (per qtr) * 4 Qtrs = $1000.00 (Total Price per year) etween moun t of time b average a nths contra ct is 3 mo renewal of $1000 + $300 (30% of 1000) = $1300.00 Total Investment: $1300 a year

Outsourcing Development of Software Multiple Technologies = Headache S, WP7 nd roid, iO e.g. - aProbably the hardest of all outsourcingIf you find a great resource, KEEP THEM

Finding Software Development Talent If onshore is within budget, do it. If not use - ne or k is do hard w already : referrals first for you : odesk.com : elance.com more

Test each developer. even if they’re on a teamExample Test 1 : goo.gl/zJmXV cess m ore suc easier,Example Test 2 : goo.gl/sE2tk ccess e ss su harder, l

Testing will weed out the incompetent

Tips for building a testMust be able to complete in under 20 mins Must be realistic

Once you find a great resource, KEEP THEM

First Tasks should never be mission critical

How much does outsourcing software cost The classic “it depends” answer : quality : timeline : poc vs final product : technology used more

My Costs Projects : Android jects ted 6 a ndroid pro : HTTP CommunicationI ’ve comple utsourcer same o using the lone this year a : No Graphic Design ple keep it sim $18.36 an Hour for Armenian resource itude would on shore cost s for same level of apt an hour cost me nearly $100

Total Costs~136 hours worked this year136 hours * $18.36 = ~$2500 $2500 * .3 = $750 0% add on using sam e formula as before, 3 t of resource ch arge for managemen Total Investment: $3,250 our, If on shore @100 an h 80 this would be - $17,6

General Tips For Outsourcing

Cut the fat early ng, not p erformi t one if they’re o to the nex em, g get r id of th Be very specific in your tasksAsk for confirmation that they understand t the task have them repea words ba ck in their own

If you’re not happy, find another one. Go on shore if you prefer.

In the end ...Do it to make your life easier.

Outsourcing Do's and Don'ts

by donnfelker on Sep 14, 2011

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Outsourcing Do’s and Don’ts — Presentation Transcript