Free-Reprint Article Written by: Nigel Fogden See Terms of Reprint Below.
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Additional Article Information: =============================== 411 Words; formatted to 65 Characters per Line Distribution Date and Time: 2006-10-31 11:12:00 Written By: Nigel Fogden Copyright: 2006 Contact Email: mailto:[EMAIL PROTECTED] For more free-reprint articles by Nigel Fogden, please visit: http://thePhantomWriters.com/free_content/d/index.shtml#Nigel_Fogden ============================================= Special Notice For Publishers and Webmasters: ============================================= If you use this article on your website or in your ezine, We Want To Know About It. Use the following URL to let us know where you have used this article, and we will include a link to your website on thePhantomWriters.com: http://thephantomwriters.com/notify.php?id=3780&p=load HTML Copy-and-Paste and TEXT Copy-and-Paste Versions Of Article Are Available at: http://thePhantomWriters.com/free_content/db/f/effective-outsourcing.shtml#get_code --------------------------------------------------------------------- Effective Outsourcing Copyright (c) 2006 Nigel Fogden 24 by 5 Tech Comm http://www.24by5.com As the implications of globalization have sunk into the business world, the idea of what a company should be has changed. Not long ago they were institutions--buildings and factories with workers who drove to work in the morning and punched out at night. Business models have become much more customer centered since those days. It's not about your company or your staff, or even your product--your business is about your customers and what they want. This shift in focus has led to many companies experimenting with different structures in order to discover how to meet their customer's needs at the lowest cost and for the highest profit. One of the most effective ways of doing this is outsourcing. Companies define their core competencies and then look to outside contractors to meet their other needs. Marketing, printing, archiving, human resources--for every business function, there are other businesses that specialize in providing it. Microsoft now employs between 4,000 and 5,750 temporary and contract workers. Benefits of Outsourcing * Outsourcing allows businesses to focus on their distinctive core competencies, the specialties that the business is based on and that help it achieve competitive advantage. * Because they are working within their specialties, companies that provide outsourced services can often work on a project in a faster, more efficient and more sustained way than an in house team could. * Outsourcing allows businesses to better asses future costs because the company providing the outsourced services must clearly estimate and propose costs. Drawbacks of Outsourcing * Managers have much less control over products and services once they have been outsourced--you are placing trust in another company to meet your businesses needs. * Communication between your company and the contractor can be difficult. By transferring a function to a contractor you lose the ability to directly communicate your company's goals and values. * Outsourcing can result in the loss of in-house and local jobs due to its ability to lower costs and improve efficiencies. This can, in turn, make your company dependent on contractors to survive. How to Outsource Effectively * Make sure that you have a contact person with your contractor that you can easily communicate with and who will be accountable to you. * Have the service or product you want outsourced as clearly defined as possible before you hand it over to contractors * Make certain that you can draw from a pool of qualified contractors so that if you have problems with one you can find others to provide the services you need. --------------------------------------------------------------------- Nigel Fogden is an English teacher and writer with 24 by 5 Tech Comm, a technical writing company that specializes in fast, high-quality, software documentation. 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