Advantage & Disadvantage of Outsourcing

One of the great things about working from home and online is that you can be your own boss. One of the downsides... you no longer have a team of co-workers doing their share of the tasks. The solution: Outsourcing.

If you look behind the curtain of any solo-entrepreneur, you'll most likely find an entire team of assistants and service professionals keeping that business running smoothly.

One of the primary disadvantages of outsourcing is that you lose quality control over the tasks. This can be particularly risky if you are not familiar with the task, or how it should be done, and you're working on blind faith. Especially with important aspects of your online business, like SEO or link building.

One of the major advantages of outsourcing: getting more done in less time...

I outsource quite a bit myself, but I thought I would bring in an expert to discuss the advantage & disadvantage of outsourcing in more detail. My friend Traci Knoppe runs an outsourcing company for web tech services, so I sent her an email with a few questions:

Hi Traci, I was just reading your article on the pros & cons of outsourcing and it reminded me of some outsourcing nightmares I've had in the past...

Fortunately most of my experiences have been positive... but, any advice on avoiding a bad experience with outsourcing?

In a word: References. Just like hiring anyone, you need to check their references. So many people are too quick to hire the first person or company they believe they can afford, regardless of the integrity and work ethic of the person or company.

Without checking references, you are acting on blind faith that this person or company can do what they say they will do.

Ahh - very good advice! I usually start by doing a search on Google for reviews or conversations about the company or person I'm considering. References I hadn't considered...

I tend to outsource tasks I am not good at, such as graphic design or copywriting, and then I also outsource tasks that are repetitive or time consuming. With those, such as link building or article submissions, I prefer to do the task myself at first to get a feel for how I want it done.

That way I can share detailed instructions with the assistant or company. As someone who runs an outsourcing company, would you agree with this process?

It can be helpful when a client understands some of the processes involved in accomplishing the work they require.

When we would need information from them, knowing even a little of the how and why behind the request can make it easier for the client to provide us with the exact information we need.

However, it certainly is not necessary for a client to feel they need to learn about what we do in order to work with us. After all, that's why most companies outsource, because they don't know how to do something, and they don't have time to learn, or don't want to take the time to learn.

True - I do love the people on my team that seem to just be intuitive to what I need and "get it done" πŸ˜€ - they rock! Especially with graphics and site design.

A lot of people fear the cost of outsourcing. I've found it to be a very rewarding investment, increasing my productivity and revenue exponentially.

You've been self-employed for over a decade yourself - what's your personal experience with this?

Everyone outsources something: we don't do our own dental work, and we don't cut our own hair. For many who do cut their own hair, perhaps they shouldn't. πŸ˜‰ We buy goods and services every day: and that's all forms of outsourcing.

Coming to realize that we are already outsourcing, can help one see outsourcing as a help, not just an expense. Outsourcing can actually increase your profits, and it will most definitely afford you the time to manage your business more effectively, leaving you to do the parts of your business that only you can.

Once I personally saw outsourcing as a time saver for me, then I quickly became the 'Queen of Delegation'. Yes, I'm an outsourcing service provider and I too outsource, that's why I have staff to help me.

Good point - and great way to look at outsourcing. You wouldn't want to see me if I cut my own hair! For that matter, that's what some of my sites look like when I don't outsouce: a bad do-it-yourself job. LOL

For someone that wants to try outsourcing, just get their feet wet a bit maybe, what would you recommend as the best first step?

My recommendation is to start with one task or small project as a test; and delegate that to an outsourcer.

If you've checked references before you choose someone, then the true test of your compatibility to work together and communicate effectively will be revealed through your test project.

If the test did not go well, determine if another test with that same outsourcer might help smooth out some of the new working relationship wrinkles. If continuing with that outsource provider isn't an option, then find someone else. It's definitely worth the effort to continue your search until you find the right person or company.

If the initial test went well, then look at your work load and decide what you can effectively delegate and outsource it!

Great advice. Not everyone, or every company, is a good fit. It has taken me time to create a team I can depend on and really enjoy working with. I use the word "team" loosely - it's made up of a lot of stand alone disconnected individuals who are awesome at what they do.

But I'm working on that. πŸ˜€

Thank you, Traci! Very insightful to hear your take on these issues.

- - - - - - - - - - - - - - -

I would love to hear your thoughts on outsourcing tasks for your online business, and specifically your personal experiences with the advantage & disadvantage of outsourcing. Leave us a comment below!

Best,

p.s. Traci Knoppe runs Your Web Tech Team, a virtual outsourcing team with very affordable rates.

About Lynn Terry

Lynn Terry is a full-time Internet Marketer with over 17 years experience in online business. Subscribe to ClickNewz for the latest Internet Marketing trends & strategies, Lynn's unique case studies, creative marketing ideas, and candid reviews...moreΒ»

Discussion

  1. Great suggestions on how to get a good outsourcing team. I outsource a lot, and have had good and bad experiences. It's important to know going in if you can afford to lose that money, when you start outsourcing to a new person/company.

    And Traci's suggestion to start small, is spot on. With a small project you can see the quality, the turn around, etc.

    It also helps if you hear testimonials from people you know and trust.

  2. Rachel Rofe says

    It's great to read the perspective of other outsourcing company owners, so thank you very much for sharing that. πŸ™‚

    And I couldn't agree enough on the importance of hiring someone for SMALL tasks before entrusting them with a lot - I've heard far too many horror stories!

  3. Natalie Akpele says

    I enjoyed this post immensely! As someone who check the references of the nanny I place, it shocked me that I had not thought to check the references of the ppl I have outsourced to. What a wonderful piece of information. Thanks Lynn and Traci for all the great info.

    Nat

  4. Free Article Directory says

    Good interview, lots of great pointers. Outsourcing plays a key factor when trying to grow your business, online or offline. As much as we like to do everything our self, since we feel that "It will get done the way we wanted it be". Its important to realize which tasks may be effective and time consuming when outsourced. Good point about starting small.

    Remember, you get what you pay for.

  5. great article, thanks for showing both side of outsourcing.I am agree anriana you need to start with small project first to check quality.

  6. Thanks for the interview Lynn!

    With so many people running at-home businesses, outsourcing helps keep ya sane. πŸ˜‰

  7. Scott Lovingood says

    Love the interview format with the pictures πŸ™‚ Makes it very easy to follow.

    We all outsource though we often don't think of it that way. Division of labor is part of what made America's economy so great. It's just when we have to manage the outsourcing that we stress.

    Starting small is a great way to do it. I like your method of establishing a process and having someone use it. Plus it helps if you want to have someone to a quality check on the work. You can hand them the process and say "Did this work meet these spec?"

    Keep up the great articles.

  8. myra manning says

    I have had a terrible time with outsourcing so far in my "internet marketing" career. Unfortunately I usually don't get "more done in less time." It's interesting to read everyone's take. Apparently it is a must though. Argh.

  9. Wow! This is a very nice post. Thank you for posting the pros and cons and thank you for sharing the discussion. It opened a lot of ideas. Thanks!

  10. Melanie Benson Strick says

    Lynne, great post. I am really big on delegating and outsourcing too. I found that my clients had so many questions I had to create a coaching program just to teach people how to hire the right people!

    So a couple of things I add to the recommendations are:

    - When searching online for info on the company, look for testimonials on the website and call them up and ask them what worked best, what do they wish they would have done better and would they re-hire them. Listen to their tone in their answers.

    - Look for people who are the "hub" of your industry and see who they use. Important to still interview them for FIT but at least you know they were qualified enough to work with an industry leader.

    - Also master your delegation. Once you hire someone you still have to do a good job of training and delegating or you will not get great results.

    Thanks for starting a nice dialogue about a growth strategy I'm very passionate about!

    Melanie

  11. For those of us who still work a 9-5 job, I think outsourcing is a necessity if your business is ever going to succeed. There is simply not enough time in the day to do what NEEDS to be done. You may not get *exactly* what you were expecting, but at least you are doing it and you'll be growing. You'll be producing content. Getting links. Getting your site out there and getting traffic. Even with an unlimited supply of coffee, it isn't going to happen without delegating.

  12. Hey thank you for sharing your views on outsourcing; and it advantages and disadvantages. I recently hired a person to do some link building task for me. I tested his work by giving some sample work, which he performed well. After testing that person I hired him initially I had some wild dreams about the work which he has to do. But, after seeing the work done report I felt very happy since I hired the right person. Anyway thanks once again for nice information.

  13. Alan Petersen says

    Awesome information. I just hired my first full-time outsourcer last month and it's been great to have someone doing the tedious stuff I hate to do.

  14. Some great comments here, some of which people overlook when they look at outsourcing an aspect of their business.

    Even when you outsource a particular job, it is in effect like hiring a member of staff. You would not simply employ someone without interviewing them or taking references!

    And, when they are working for you, you would expect them to report to you in a timely manner with information you need and in a format you want.

    There are lots of individuals and companies now offering all sorts of outsourcing solutions, my company being one of them (www.papermountainsolutions.co.uk). Our clients have seen significant benefits.

    There are positives and negatives in any situation, but make the positives work for you.

    Great article.

  15. Oh Traci & Lynn, I wish I'd read this before I hired the guy who was supposed to decorate my flat a coupla years ago! And the v nice almost homeless young man whom I hired to clean the flat once a week & was so slo-o-ow he got through just half a room each time & then I couldn't get rid of him because I felt bad about firing him (in the end I made it all so tough for him he ran πŸ™‚ ).

    Traci, I'm one of those people who shouldn't cut their own hair! But if you've ever had long or longish hair you'll know that THEY ALL LOVE TO CUT IT ALL OFF EVEN THO THEY PROMISE THEY WON'T! :-O

    Now I've got that off my chest:

    Great article - thanks so much Lynn & Traci!

    And Melanie, thanks for the v useful additional tips.

    And I agree with Scott - the photos make the interview come across really well.

    Isha

  16. Magento Development Comapny says

    Awesome Post, Lynn! Great Suggestion for selecting good outsourcing companies.
    We should give them first demo or test project to check their quality of work.

  17. james steiner says

    Tremendous Advice.... especially the "who cuts your hair" analogy LOL! It's ALL about building TRUST & BEING SATISFIED! Communication IS HUGE!! We have found some folks have no idea what they actually NEED verses what they Want! As a user be receptive to constructive direction and as a provider be certain you have a FULL understanding of the client(s) goals or "End Game". The more "detail specific" information up front the better for both parties.

    Many Thanks As Always Lynn..... Wonderful Interview & Advice!!

  18. Lynn, I outsource everything to my Virtual Assistants from bookkeeping to wordpress maintenance. That leaves me time to do what I love doing, Internet marketing πŸ˜‰

    The most important thing to remember when outsourcing is to have a strong communication system in place. That is the maker or breaker in any outsourcing relationship. Your VA is not a mind reader and having a project management system in place like Central Desktop, Smartsheet, Basecamp or whatever you want to use definitely adds to the whole mix too. Also, for those routine projects (like Article Submissions), having written down processes in place allow you to easily source this type of work out to any VA.

    If outsourcing to a VA is an interest to your list, I have a whole blog dedicated to this subject at http://www.vanetworking.com/blog and your members can also download a couple of free ebooks there to help them find the ultimate Virtual Assistant for their business needs.

  19. PeterTrapanese says

    Hi Lynn:

    Interesting topic because I recently started looking into hiring a VA... The truth for me is I have been learning the ropes of IM for well over 2 years now... Another truth is I realize that there is always something else to learn, as a direct result of what I am learning, lol... Anyway, I fell comfortable and confident at this point that I will not be blindly trusting someone because I know nothing about specific aspects of the project I am looking to outsource...
    I learn so much on this membership Lynn I have thanked you before but it has been awhile so I want to thank you again!!!

    Mother Taresa- "I may never due any really great things in my life but, I can due many little things with great love"

  20. PeterTrapanese says

    OOP'S I am registered here as trap328...

  21. Ethan Brown says

    Many people who establish their online business are actually outsourcing some of their activities. In this way, they could save time, energy and money as well. In addition, they can maximize what they are doing.

  22. Web development London says

    I am also a part of outsourcing and the ratio of advantages and disadvantages is 2:1. Means 75% is good for me but i don't like some work from countries like china, Philippines, pakistan etc.

  23. The best thing I have found about outsourcing is that you can use your customers money to pay your outsourcers for the project you are working on. I do a lot of local search consulting and it works beautifully if you can get an upfront fee from your client.

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