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Outsourcing for
small businesses
RISE Austin, May 2013
Dan Crean
Outsourcing
St Expeditus - Patron of
emergencies, expeditious
solutions, against
procrastination, merchants, navig
ators, programmers, people who
have to deliver work or products
on a tight schedule
…and victims of outsourcing.
Why Outsource?
Core competency
Competitive Advantage
Faster
Cheaper
Better!
Lower risk
More variety
Kinds of tasks to outsource
One-off projects vs
continuing
Expeditionary
marketing
Tapered backward
integration
Time-consuming
“drudge” work you
can’t get employees to
do.
Kinds of tasks to outsource -
specific
Logos, graphics, illustrations, background articles, data
entry, bookkeeping, transcription, website design, email
campaigns, market surveys?, marketing plans?, fashion and
interior design, architecture?, product design?, financial
plans, programming/code, research, fact checking, virtual
personal assistants, proofreading, video editing, event
planning?, tagging photos, cropping photos, customer
service?, translation, simple animation, payroll
processing, statistical analysis?, project
management?, shopping, mailmerge, transcription, website
maintenance and updating
How good does it
have to be?
How does skill level and
confidentiality affect choice?
Difficult
Easy
Proprietary
Generic More Likely to Outsource
Less LikelyLess Likely
More Likely to Outsource
Am I contradicting
What I said earlier?
Specifications
• Set out must-haves.
• Give contractor some
creative flexibility
• Do not impose overly
tight deadlines
Managing your project
• Break it up into small
projects
• Don’t necessarily get the
same contractor for all
phases.
• Minimize risk
• Derrick Sivers says “take
just the first milestone, and
treat it as a complete
project.”
http://sivers.org/how2hire
Choosing a bidder/contractor
Large marketplace platforms have rating systems
What is everybody is rated 5 stars?
What is the value of related experience or formal qualification?
Why are medical doctors better writers than people with
journalism degrees?
Leap of faith! Hire more than one contractor for same project.
Derrick Sivers recommends “hire at least two different people “
and “Some will definitely go bad. Just expect it and don't let it
upset you”
Local Services
Craigslist, TaskRabbit, Jellifi – for events,
Zaarly, more coming on line all the time
General Purpose Marketplaces
Elance, Odesk, Guru
Huge marketplaces. Thousands of contractors.
Great services for employer. Pay with credit card. Recourse if
contractor tries to cheat you. They handle all 1099 stuff. You
just show cost as an expense.
You can request bids from specific contractors or put project out
for competitive bid.
Other marketplaces or suppliers
(some)
• Textbroker (articles, 4
levels of price/service)
• Rev.com (transcription)
• Amazon mechanical
turk (many)
• Fiverr (wild!
Everything $5!)
• Logo marketplaces:
99designs, stocklogos.com
, brandcrowd.com…
• Design contests!
• Gets you a wide choice
of designs for
reasonable price
• Crowdspring.com, logoar
ena.com, forums.digitalp
oint.com/forums/contes
ts.94/
Project Management
• Dropbox
• Google docs
• GotoMeeting/WebEx
• Evernote
• Asana
• Zoho - $20/month
• Basecamp - $20/month and up
• Hipchat
• Trillian (IM)
• Email
• Hire contractor to manage project?
Paying Contractors
• Elance, Odesk, etc. allow credit card payment
• Paypal, Dwolla
• Bank wire transfers?
• 1099 – a headache?
• Contracts – another reason to not use craigslist.
• Copyright/IP – YOU OWN IT!
Follow-on work
Is this a good idea?
Pluses and minuses
Case Studies
• Translation – pro company vs odesk
• Logo design
This presentation: http://www.slideshare.net/dancrean/rise1
Resources: http://www.dancrean.com/rise

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Outsourcing for small businesses

  • 1. Outsourcing for small businesses RISE Austin, May 2013 Dan Crean
  • 2. Outsourcing St Expeditus - Patron of emergencies, expeditious solutions, against procrastination, merchants, navig ators, programmers, people who have to deliver work or products on a tight schedule …and victims of outsourcing.
  • 3. Why Outsource? Core competency Competitive Advantage Faster Cheaper Better! Lower risk More variety
  • 4. Kinds of tasks to outsource One-off projects vs continuing Expeditionary marketing Tapered backward integration Time-consuming “drudge” work you can’t get employees to do.
  • 5. Kinds of tasks to outsource - specific Logos, graphics, illustrations, background articles, data entry, bookkeeping, transcription, website design, email campaigns, market surveys?, marketing plans?, fashion and interior design, architecture?, product design?, financial plans, programming/code, research, fact checking, virtual personal assistants, proofreading, video editing, event planning?, tagging photos, cropping photos, customer service?, translation, simple animation, payroll processing, statistical analysis?, project management?, shopping, mailmerge, transcription, website maintenance and updating
  • 6. How good does it have to be?
  • 7. How does skill level and confidentiality affect choice? Difficult Easy Proprietary Generic More Likely to Outsource Less LikelyLess Likely More Likely to Outsource Am I contradicting What I said earlier?
  • 8. Specifications • Set out must-haves. • Give contractor some creative flexibility • Do not impose overly tight deadlines Managing your project • Break it up into small projects • Don’t necessarily get the same contractor for all phases. • Minimize risk • Derrick Sivers says “take just the first milestone, and treat it as a complete project.” http://sivers.org/how2hire
  • 9.
  • 10. Choosing a bidder/contractor Large marketplace platforms have rating systems What is everybody is rated 5 stars? What is the value of related experience or formal qualification? Why are medical doctors better writers than people with journalism degrees? Leap of faith! Hire more than one contractor for same project. Derrick Sivers recommends “hire at least two different people “ and “Some will definitely go bad. Just expect it and don't let it upset you”
  • 11. Local Services Craigslist, TaskRabbit, Jellifi – for events, Zaarly, more coming on line all the time
  • 12. General Purpose Marketplaces Elance, Odesk, Guru Huge marketplaces. Thousands of contractors. Great services for employer. Pay with credit card. Recourse if contractor tries to cheat you. They handle all 1099 stuff. You just show cost as an expense. You can request bids from specific contractors or put project out for competitive bid.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17. Other marketplaces or suppliers (some) • Textbroker (articles, 4 levels of price/service) • Rev.com (transcription) • Amazon mechanical turk (many) • Fiverr (wild! Everything $5!) • Logo marketplaces: 99designs, stocklogos.com , brandcrowd.com… • Design contests! • Gets you a wide choice of designs for reasonable price • Crowdspring.com, logoar ena.com, forums.digitalp oint.com/forums/contes ts.94/
  • 18.
  • 19. Project Management • Dropbox • Google docs • GotoMeeting/WebEx • Evernote • Asana • Zoho - $20/month • Basecamp - $20/month and up • Hipchat • Trillian (IM) • Email • Hire contractor to manage project?
  • 20.
  • 21. Paying Contractors • Elance, Odesk, etc. allow credit card payment • Paypal, Dwolla • Bank wire transfers? • 1099 – a headache? • Contracts – another reason to not use craigslist. • Copyright/IP – YOU OWN IT!
  • 22. Follow-on work Is this a good idea? Pluses and minuses
  • 23. Case Studies • Translation – pro company vs odesk • Logo design