The Less You Do, The More You Make: A Simple Guide to Outsourcing
1. THE LESS YOU DO,
THE MORE YOU MAKE
A Simple Guide to Outsourcing
2. MY BACKGROUND
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Got into the IM business ~2007
Felt like I had to do everything
Overwhelmed (with big bills to pay)
Forced me to delegate just to survive
Currently employ 24 full-timers (6+ yrs)
Philippines, Ukraine, Romania
Also: local errands, cooking, cleaning,
maintenance, oil changes, pet care, etc.
Warning: outsourcing can be addictive
13. LOOK AT WHAT'S STOPPING YOU
● Am I procrastinating on this task?
● Do I dread starting this task?
● Am I awesome at this task?
thedailymuse.com/toolsskills/7-tasks-you-should-outsource-immediately
14. ITS A NUMBERS GAME
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How much is your time worth?
How much is your lifestyle worth?
How much is your health worth?
How much is your organization worth?
How much is your hobby worth?
15. EXAMPLE
Scottsdale
● Avg per capita income: $46,329
● Avg job: 2000 hrs/yr (40 wks for 50 wks)
● $46,329 / 2000 hrs = $23.16/hr
● Sliding rule (adjust for specific scenarios)
source: city-data.com/city/Scottsdale-Arizona.html
19. GET YOUR MONEY'S WORTH
● Local (full or part-time) employees?
● Offshore (full or part-time) employees?
● Project-specific contractors?
20. FIND GREAT WORKERS
● Web-Based Marketplace
● Personal Referral
● Recruiter / Matchmaker Consultant
Key is knowing exactly what you're looking for
21. MANAGE PRODUCTIVITY
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Outline exactly what is expected
Incentivize focus on what's important to you
Don’t leave it open to their assumption
Communicate expectations & steps clearly
Never assume they are on the same page
Relinquish control, let them do their job
It's all about mindset
22. AVOID GOTCHAS
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Probation period/task
Language gap (written & spoken)
Culture gap
Time zone difference
Assumptions
Lack of management
Micro-management
Under-utilized
"Intellectuals solve problems,
Over-utilized
geniuses prevent them."
Under-paid
~Albert Einstein
23. WHERE TO START
● Virtual Assistant
● chrisducker.com/va-infographic
25. RECAP
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How much your time is worth?
Create list of things you do regularly
Do you like doing each task?
Create job description for those you don’t
Post ads to hire for those tasks
Enjoy your newly found freedom
Grow your business, take a vacation
27. BIGGEST MOTIVATION
● Cost, but
● Big companies have learned from their
mistakes, 2nd and 3rd generation
outsourcers
28. 1ST GENERATION
● Cost is the main driver
● Tend to look for the cheapest service costs
● Using one provider for multiple processes.
For example, Payroll, Recruitment and HR
● Laying the foundation
29. 2ND GENERATION
● Achieved cost-reduction
● Looking at other benefits such as greater
business performance and value
● Looking at the bigger picture and costing
the whole project looking at other
associated costs such as IT integration,
communication
30. 3RD GENERATION
● Cost is still important but not the key
driver
● More focus on business optimization and
improvement at the best cost
● Aligning this to the overall business
strategy
31. LESSONS LEARNED
1. Think about the overall strategy and your goal
from the start. Where do you want to end up?
2. Pick your vendor wisely. Think about how your
priorities may change in 12 months. Will this
provider still work for you?
3. Can you provider help you in initial stages whilst
you are learning?
4. Provider management – (Service Level
Agreements)
5. Communication – what tools do you already
have?