You might want to outsource your cafeteria or your janitorial services. Reviewed by Bill Hackos, Vice President, Comtech Services, Inc. Contracting is most successful when contractors handle only a minor portion of the information-development function. Details about how things are accomplished are the responsibility of the supplier. For example, you may have a small payroll, making it inefficient for you to maintain your own payroll staff. But even in the latter category, Ridout says the company will consider managed services for infrastructure, such as network monitoring and system backups.
Just make sure your contract guarantees security, confidentiality and high availability. Information technology: If you just need someone to troubleshoot periodically, outsourcing is a good solution. Is it less than you could do the work for? You must evaluate the cost of your information-development function so that you can compare internal costs to quotes offered by suppliers. If so, you may not want to outsource. In addition to overseeing networking, backups, redundant hardware and hack prevention, some suppliers even provide entire hardware and software systems. Is it a core function in your company? Services managed in this model look like staff augmentation or pay-per-use services.
Dry, but a great reference for business owners and managers alike. It should contain the statement of work, quality expectations, schedule expectations, guidelines for measuring success, and procedures for handling problems and disputes. In the familiar contracting arrangement, the department acquires outside help by using contracting agencies. The supplier may have expertise that your department lacks and would be costly to develop in-house. To avoid dissipating the economies of scale, you need to be more thoughtful in terms of how you use the provider. This book contains some information that took me years to learn. Writers acquired in this way are employed by the contracting agency but are ordinarily managed by people within the information-development department.
Your supplier needs to be free to make management decisions. The important question is: why would you want to outsource some or all of your information development in the face of considerable up-front work? Peter frequently contributes his thought leadership as a keynote speaker at industry events, and in international business media, including the Wall Street Journal, New York Times, and Financial Times, and is a regular contributing blogger on Forbes. Your company might be more comfortable managing professionals rather than uneducated labor. As a result of these restrictions, the experience or expertise that contractors acquire on the job is lost when they leave. You much more intensively, actively manage the relationship. You could outsource the study to a consulting group and not have to train your own people in user and task analysis. So the company uses a variety of managed services, including Web hosting from Proxicom Inc.
Employers must continually assess all potential risks and ensure escape opportunities are made available if employees fall victim to a workplace violence incident. For example, the supplier may be more efficient and, therefore, less costly than your own organization. But, unless the outsourcing is less expensive or contributes to increasing revenues, it produces no real value. She had outsourced the company's Web infrastructure, so it was someone else's problem. Once the outsourcing starts, you must transfer all the management of the outsourcing function to your supplier.
Contractors must be managed just like direct employees but, because of the restrictions, you may find it more time consuming to manage contractors than direct employees. Bendor-Samuel, however, advises entrepreneurs against micromanaging service providers. For example, for most companies, payroll is a vital but not core function. At Du Pont, Ridout says his group audits everything from source code to security. In addition to calculating wages, payroll companies adhere to current tax obligations, print and deliver checks, and provide management reports.
Check out these popular outsourcing candidates: Payroll: Payroll, with its complex tax implications, is the most commonly outsourced business process. . Does the quality of your software documentation increase sales? The major difference between outsourcing and contracting is related to management. In this model, you leverage a different kind of expertise: skilled people rather than organizational knowledge. There is some question as to how much organizational knowledge can actually be applied anyway.
He pursues change for the better, for self and the others, and seeks satisfaction in helping people in within Everest Group and beyond to become what they aspire to be. But in most respects, the management of contractors is nearly indistinguishable from the management of direct employees. Look at the cost proposal. Your company may have contracted for a lower quality of work than you are accustomed to providing. Passive management implies that you are managing to service levels. Struggling to find ways to redistribute tasks once held by laid-off full-timers, business owners are taking a renewed interest in outsourcing. You may want to outsource payroll to one of the large payroll-service companies that maintains huge numbers of payroll accounts and has the expertise to handle special payroll problems like tax and legal issues.