This presentation talks about how to do outsourcing the right way. It needs a proper time investment and commitment, but can really help the small business owner.

1. Polaris Centre
Outsourcing
Maximising benefits while minimising the risks

2. What is Outsourcing?
Wikipedia – the contracting out of a
business process to a third-party

3. Why Outsourcing?
Eternal Small Biz Owner Dilemma
As small biz owners, we are often our own
marketing, accounts, business development
& production departments – as well as
providers of actual goods and services

4. Why Outsourcing?

5. In the room tonight …(show of hands)
What type of outsourcing are you considering?
• Outsourcing a role locally (eg. Social media
marketing)
• Outsourcing a task locally
• Outsourcing a role overseas
• Outsourcing a task overseas

6. Benefits of Outsourcing
• It doesn’t have to be you doing the work!
• Don’t need to employ someone – but hire
them as required and on demand (saving
employment on costs)
• Offshore can be considerably cheaper

7. Risks of Outsourcing
Outsourcing can expose your business to a range of risks
• Frustration, wasting time
• Incompetence
• Misunderstandings (language / culture)
• Timeliness
• Unrealistic expectations
• Risk to those with malicious intent (eg. Misuse of
databases). Unlikely but possible.

8. Internal or Overseas
Internal
• Standards, culture, legislation, shared
understanding – more likely
Overseas
• This cannot be assumed, and is more
difficult to verify. Need to take time to
establish or train.

9. The One Thing
If there is one thing which is required for
ANY outsourcing to work it is
• That you understand the job well yourself
• That you can communicate what is to be
done
• That you can assess whether it has been
completed successfully

10. Example
SEO/Ad Words outsourcing to a colleague
• I have done a lot of research about it
• I know it should not be outsourced overseas
• I know how important it is to client sites and why
• I tested her with small jobs, not just to see if she
could do them, but in the manner of working
together
• I now give her large jobs
• I keep on top of it & keep learning

11. Mitigating Risks from Outsourcer
• Using an agency – manages some
communication, reporting and payments
• Use a traceable project management /
feedback system
• Take time time to interview
• Provide enough access to complete the
task but no more, especially at the
beginning

12. Your part in the success formula
• Provide very clear instructions
• Be a good project manager
• Have fair expectations (does the task suit
their abilities?)
• Understand the context of the outsourcer –
working conditions, infrastructure, culture
• Outsourcing the right jobs to the right
people (certain things should not be
outsourced overseas)
• Be a good employer

13. Remember
It wont end up cheaper if it ends up losing
you business or a considerable amount of
time.

14. Risk areas
• Anything where failure of task would be a threat to your
business
• Working on a live website
• Mishandling of database (task itself may be easy, but possible
risk may be high)
• Anything you don’t understand yourself or have some way of
double checking (eg. Translation, website development vs
design)
• Anything you can’t clearly explain – tempting to outsource
things we don’t like or understand (eg. Photo management
for website built - client asked me to provide training video
for the outsourcer she had sourced)

15. Where do you find contractors?
• oDesk
• Freelancer
• Guru
• Elance
• Fiverr
*working outside the platform - risks

16. Tools for Management
Skype – for real time communication/screen sharing/video calls/ voice calls
Skype.com
Jing – for screenshots and short videos
Jingproject.com
Skitch Skitch.com (integrates with Evernote)
Complex projects – project management – only invest the time for ongoing
work, not one off tasks
There are MANY to choose from
Podio.com
Basecamp
Trello.com
Password tools
Last pass lastpass.com

17. Visual Communication Example

18. Visual Communication Example

19. Visual Communication Example

20. Checking & Project Management
Unless the actual role you are outsourcing is Project
Management, YOU need to manage your outsourced
project
• Check everything
• Provide clear feedback – be professional
• Provide ongoing education and expectation setting
• Decide if worker understands your feedback or not. If
after a few tries they don’t get it, cut your losses and
move on (this is why you should always start with small
insignificant tasks if you are looking for a long term hire)

21. Another outsourcing model
Virtual Assistants & Businesses which
manage the overseas outsourcing for you
Benefits:
• They do the project management /
training QA
• May already have vetted, tried and tested
suppliers

22. Quick Task Example
Fiverr.com
Shows the type of work available
Shows ratings and feedback
Low risk – great place to start to play

23. Exercise – your ad on oDesk

24. Verify your email address

25. Start to Post your Job

26. Choose Main Category

27. Choose Sub Category

28. Fill out details

29. Your Options - Payment

30. Your Options - Duration

31. Your Options - Workload

32. Your Options – Job Visibility

33. Your Options – Job Visibility

34. Your Options – Number of Hires

35. Your Options – Number of Hires

36. Preferred Qualifications

37. Preferred Qualifications

38. Preferred Qualifications

39. Preferred Qualifications

40. Other Optional Questions

41. Post Job

42. Final Thoughts
• Remember you are working with real
people
• There is no short cut to effective
outsourcing
• Start small, learn first
• Have fun!