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OUTSOURCINGDo’s and Don’ts
DONN FELKER  ENTREPRENEUR / DEVELOPER / AUTHOR
OUTSOURCING - What is it?Experience - Why - How - Questions
WHAT
India
China
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                                 ...
Accountant : One Face-to-Face                                                      r                                      ...
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 ...
Finding an Virtual Assistant                  Learn from others (Ferris)         e elseor anyon                  Again, Qu...
Finding a Virtual Assistant                       Brickwork India : brickworkindia.com                  Your Man In India ...
Tips for Finding a Good VA                   Be clear and very specific in your tasks                               Specif...
How much does a VA usually cost?          It varies, depending on job                                                     ...
Estimating the total cost of a VA      Total Price + 30% = Total Investment$250 (per qtr) * 4 Qtrs = $1000.00 (Total Price...
Outsourcing Development of Software  Multiple Technologies = Headache                                                   S,...
Finding Software Development Talent  If onshore is within budget, do it.       If not use -                               ...
Test each developer.                                even if they’re on a teamExample Test 1 : goo.gl/zJmXV                ...
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                  ...
My Costs                                    Projects : Android                                jects             ted 6 a nd...
Total Costs~136 hours worked this year136 hours * $18.36 = ~$2500     $2500 * .3 = $750                                   ...
General Tips For Outsourcing
Cut the fat early                                                                         ng,                             ...
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
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Outsourcing Do's and Don'ts

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A presentation which covers the do's and don'ts of business outsourcing from someone who has experience in outsourcing Accounting, various bookkeeping and software development.

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Outsourcing Do's and Don'ts

  1. 1. OUTSOURCINGDo’s and Don’ts
  2. 2. DONN FELKER ENTREPRENEUR / DEVELOPER / AUTHOR
  3. 3. OUTSOURCING - What is it?Experience - Why - How - Questions
  4. 4. WHAT
  5. 5. India
  6. 6. China
  7. 7. It’s MORE than offshore ...
  8. 8. landscaping pool care exterminator car wash OTHER TYPES OF OUTSOURCING
  9. 9. MORE COMMONLY SOUGHT AFTER accounting development virtual assistant
  10. 10. My Experience
  11. 11. =
  12. 12. Place a dollar amount on your time.
  13. 13. landscaping pool care exterminator car wash Great places to start
  14. 14. I needed help with...accounting virtual assistant development logo design
  15. 15. Accountant : LocalVirtual Assistant : India Development : Armenia
  16. 16. 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
  17. 17. Accountant : One Face-to-Face r y once, eve yup, onl Tools : Quickbooks Online : Email : Phone : Scanner : Mobile (with Camera)
  18. 18. How Much Do They Cost?I go local with accountants, so... standard rates.
  19. 19. What does a Virtual Assistant do? Basic bookkeeping Research in a known domain Email Management Calendar Management and more...
  20. 20. Finding an Virtual Assistant Learn from others (Ferris) e elseor anyon Again, Quickbooks is key inator comm on denom lowest more
  21. 21. 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 ..
  22. 22. 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.
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. Testing will weed out the incompetent
  29. 29. Tips for building a testMust be able to complete in under 20 mins Must be realistic
  30. 30. Once you find a great resource, KEEP THEM
  31. 31. First Tasks should never be mission critical
  32. 32. How much does outsourcing software cost The classic “it depends” answer : quality : timeline : poc vs final product : technology used more
  33. 33. 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
  34. 34. 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
  35. 35. General Tips For Outsourcing
  36. 36. 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
  37. 37. If you’re not happy, find another one. Go on shore if you prefer.
  38. 38. In the end ...Do it to make your life easier.

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