Posts Tagged ‘international outsourcing’
Benefits of Outsourcing for Small Businesses
Monday, January 7th, 2008
This is a great article in the New York Times highlighting how outsourcing can be beneficial for small businesses.
"Outsourcing — the practice of using outside firms to handle work normally performed within a company — is a familiar concept to many entrepreneurs. Small companies routinely outsource their payroll processing, accounting, distribution, and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve companies’ outsourcing needs.
But not many businesses thoroughly understand the benefits of outsourcing. It’s true that outsourcing can save money, but that’s not the only (or even the most important) reason to do it…"
Click here to read the rest of the article.
For further reading, check out our article Outsourcing: Domestic Verses International
Tags: domestic outsourcing, Hiring and Human Resources, HR, international outsourcing, outsourcing, Rebecca Button, small business
Posted in News & Articles | 1 Comment »
Tips for Evaluating an Offshore Outsourcing Vendors
Wednesday, December 5th, 2007
Whether you’re outsourcing a call center, IT professionals, an accounting staff or web designers, you want to make sure that the vendor you choose is the best fit for your company. Otherwise, once you sign a contract and begin work it will be costly and difficult to switch to a different outsourcing company.
Be forewarned, the evaluation process should be lengthy and detailed. Not only should the outsourcer interview each of the outsourcing candidates according to the requirements of your company, a thorough research online should be done as well. That’s important, as you should not assume the word of the outsourcing company to be 100% accurate until you have talked to past or present clients, read reviews, etc.
Since every company’s needs are different, there isn’t a single evaluation formula that works for everyone. However, going through this list should help most businesses simplify the process and minimize the risks of hiring an outsourcing company.
Decide exactly what you need
It sounds crazy, but most companies start looking for an outsourcing company with only a vague idea of what they want, for example ” a call center”. That leaves the outsourcing company in charge of filling in the blanks for you. And, if there’s something they don’t offer (24 hours-a-day live operators) then you don’t need it. It’s important for the outsourcer to put down on paper the exact requirements they are looking for. For example, “24 hours-a-day live operator call center with 100-200 employees, excellent English speakers and familiarity with the IT sector”.
Looking at the outsourcing company’s size
In the case of your outsourcing company, size does matter. If you start out with a company that is too small, then it may be hard to expand your project later. Also, what if the vendor loses a client or two - will they go under? Then again, if a vendor is too large then you might get lost in a sea of other clients, you might not get the best workers on your team, or you might not be able to talk to the right people right away when a problem arises. A rough guideline to use is that a company’s outsourcing vendor should be between five and ten times that of your project. For example, if you outsource a project that is worth $1 million a year, then the vendor’s annual billing should be between $5 and $10 million.
Industry expertise
Does the vendor you hire need to have experience and or expertise in your particular industry? Will they need to know certain technical lingo to be able to effectively communicate with your customers or your employees? For some companies that will be a necessity, for others it won’t matter. Take an in-depth look at the outsourcing project and decide if this will be a requirement and exactly what the requirements will be, as far as experience, expertise, knowledge about specific programs, etc.
While these aren’t all the evaluation techniques, it’s enough to get you going in the right direction. As mentioned earlier, once you have narrowed your list down to just a few companies, do some online research to find unsolicited reviews from past or present clients. Look in discussion forums, do a Google search, etc. Do as much research as you can and talk to as many clients as you can. Then, once you have chosen your vendor, do a small test project so you can see how the outsourcing company does in action. If they meet your expectations, then it’s time to sign the contract and begin your long-term project.
Tags: Carrie Hinkel, Doing Business Internationally, international outsourcing, tips, vendors, working with vendors
Posted in News & Articles | No Comments »
Working with Chinese Companies: Do Your Due Diligence
Monday, November 19th, 2007
More U.S. companies are working with Chinese vendors because of the discounted price on a variety of products. Some of these business relationships will work out, and others will not. Just like when dealing with American companies, there are Chinese companies that are good, and others that are in the business of taking your money and giving you shoddy merchandise in return.
To ensure that the Chinese vendor you’re interested in doing business with is trustworthy and reputable, you need to do an extensive background check as well as some online research before you place an order or give them money. Now, Chinese companies aren’t particularly forthcoming with customer references, so you will need to determine if they have a good reputation on your own. But, don’t worry, there are plenty of ways to see if a Chinese company is honest and provides quality products.
What you can do to help insure that a Chinese vendor is reputable:
1. Do a search on Google. Enter in the Chinese company’s name and see what information comes up. Take the time to read everything. You may also want to check other search engines, like Yahoo! to make sure that you are reading as much information as you can.
2. Talk to other U.S. importers. There are several websites devoted to businesses that import products from outside the U.S., including China. One site is TheImportForums.com , but there are also plenty of others, like the Importing/Exporting board in the goWholesale Forums . Ask members if they have heard of the company, or if they have had any experiences with them. Remember, members are on these sites because they want to share information, so most likely they are more than happy to answer your questions.
3. Have a professional research company find out for you. Believe it or not, there are companies out there whose business it is to do research, check references and perform background checks on foreign businesses and their owners. One company that specializes in Chinese companies is Chinese Company Research Services . There are several other companies out there as well, so if you do some research on Google you will come up with a list of research companies and then you can pick the one you are most comfortable with.
4. Talk to the U.S. Embassy in China. They have a Commercial Service division set up specifically to help U.S. companies do business in China. They can be of great assistance in helping you find reputable companies as well as telling you which ones to stay away from. Their website is: http://www.buyusa.gov/china/en/ .
Doing business with Chinese companies doesn’t have to be risky or even nerve wracking. You just need to do plenty of research before deciding to work with a particular vendor. If you don’t, you very well may end up with a pile of junk at your warehouse - and when that happens, good luck getting your money back. Avoid the hassles and headaches by feeling comfortable about a Chinese business before you hand over any money for products.
Tags: Carrie Hinkel, china, Chinese Company Research Services, Doing Business Internationally, importing products, international outsourcing
Posted in News & Articles | No Comments »
Outsourcing: Domestic Verses International
Friday, October 12th, 2007
As e-commerce and home-based businesses continue to flourish, more and more companies are turning to outsourcing to reduce costs and make certain aspects of their businesses simpler. Outsourcing, either domestically or internationally, is the subcontracting of work to another company.
There are a variety of services that can be outsourced to another company, such as:
*Warehousing and fulfillment services
*Order taking and customer service
*Data entry
*Website design and management
*Payroll and accounting
In general, the benefits of outsourcing certain services can be great:
*Save on training costs
*Reduce overhead costs
*Gain access to specialized skills
*Eliminate staffing problems during peak periods
*Stay at the forefront of technology
The benefits of foreign outsourcing:
Cheaper labor: There is no doubt that in developing countries, the labor rate is much cheaper than in the U.S. For example, where a typical hourly rate for a talented web designer in the U.S. is around $50, in India you will be able to find plenty of skilled designers for $10 an hour or less. For non-skilled jobs like data entry and order taking, the rate is far less than the minimum wage in the U.S.
Availability of competent and reliable workers: many times, companies have a difficult time finding hard-working, responsible local workers to fill their jobs. Rather than continually hire new workers (low wage workers aren’t the most reliable, steady workers in the U.S.) companies are finding it easier to hire a foreign outsourcing company with a large supply of workers to handle certain jobs.
The benefits of domestic outsourcing:
Minimal conversational differences: A common complaint from customers dealing with companies’ offshore customer service is not being able to fully understand the foreign representative. Whether it’s a foreign dialect or unfamiliar phrases, customers are becoming more frustrated with the outsourcing of customer service and order-taking jobs to overseas companies. An increasing number of companies are receiving complaints and many are rethinking their foreign outsourcing of that particular sector.
Contributing to the U.S. economy: It may not mean much to large companies focused on the bottom dollar, but many smaller businesses are making an effort to keep their outsourced jobs headquartered in America. Domestic outsourcing companies are typically minimum wage jobs, but for many unskilled workers they are a good opportunity to make a living. Having these jobs available in the U.S. and not sending them overseas helps keeps more money in the U.S. and keep the dollar strong.
Outsourcing can be a great way to eliminate costs and free up much-needed time from management. To get started, it is best to select several companies who specialize in the outsourcing services you desire and then rate their differences and check their references. Finding a reliable company to work with should be fairly simple, as many have been successful in business for many years. Outsourcing companies are in charge of the training and hiring of employees, as well as having the latest in technological equipment on-hand-and all of that lowers your overhead, investment and capital costs.
Tags: advice, Carrie Hinkel, domestic outsourcing, Hiring and Human Resources, international outsourcing, outsourcing, tips
Posted in News & Articles | No Comments »