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Outsourcing the Right Way by Creating a Talent Pool

Joining Forces

Outsourcing your work is NOT about cost-cutting. If you believe it is, you have a 90% chance of getting exactly what you paid for. Garbage.

Business success starts with having the right people. And outsourcing is about finding people who can do something better than you can, (and that’s where the cost savings really come from). If you approach outsourcing as a search for talented people, you’re creating a mindset that opens up real opportunity.

It’s no longer about getting the cheapest junk at the cheapest price.

The Right People, Right Here

I like to include graphics with my posts on Zoomstart because they add a lot to a post. I can do a lousy illustration in about 10 or 20 minutes. It takes me well over an hour to do a good one. And that eats up a lot of time that’s better spent writing and networking.

So I started buying stock photos for a dollar or two. I get great stuff from a world of talented people. And the time I’m saving is worth much more than the cost.

Leveraging your own Talent Pool

There are 5 things you can get from a great talent pool. If you get 2 or 3 of them at a time, you know you’re on the right track:

  1. Time. Every venture has its core priorities. There are other things that are important, but they take a lot of time away from the core priorities. There are talented people that can do these things in a fraction of the time that you can do them. Find them.
  2. Quality. A good reason to do something yourself is to maintain the level of quality. But there’s always someone who can do something you need to do better than you can do it. Find them.
  3. Capital. Vertical integration (doing more yourself) can save you a ton of money. But there’s a cost to building the infrastructure you need to do more yourself. And that capital is often better used if it’s invested in your core priorities. Someone else already has the infrastructure and the expertise. Find them.
  4. Scalability. As you grow, you have to do more of whatever you’re doing. If you can’t build the infrastructure or bring in enough talented people fast enough, it’s easy to hit a wall. Someone out there already has the capacity to meet your growth needs. Find them.
  5. Reach. Networking is about who you know, and who knows you. Doing more business with other people leads to doing EVEN MORE business with other people. It helps you get known. It expands your network. There’s someone out there who needs you as much as you need them. Find them.

Outsourcing your work by tapping into outside pools of talent will help you do more. Faster.

And in the long run, yeah, you’ll still cut your costs.

Denouement
 

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9 Comments

  1. Wow. You got it in one. Makes a lot of sense. If you check out Tim Ferris site I think you will like the way he thinks. http://www.fourhourworkweek.com

    I have been inspired to outsource!

  2. Is the next part of the series about how to or where to “find them”?

  3. I think you nailed it Shane. Too many times it becomes about a cheaper way to operate, which leads to poor results. Sometimes, the benefits of doing everything yourself ifs very short term. I agree with Jon, the Four Hour Work Week is something to check out………looks very interesting!

  4. Jon,

    I briefly flipped through Ferris’s book a few weeks ago. I can understand the appeal of it, but I haven’t really latched onto it myself. Outsourcing your life … ? … I like my life. A lot. :D

    Can’t imagine paying someone else to live it for me, no matter how good a deal I can get.

  5. Good shot, Shane.

    I didn’t realize that I was an outsourced resource until a client told me so. His explanation:

    “I get experience in Organizational Development, Change Management, and Leadership Development all in one. What I don’t get is an ongoing benefits package to pay for or a sticky situation if, for some reason, the engagement doesn’t work out. Therefore, I’d rather pay you what you are worth while you are here vs. be saddled with an ongoing expense.”

    This is from a client of 15 years.

    That’s what outsourcing is all about: pay for the best expertise without the burden of ongoing financial and emotional overhead.

  6. Adam,

    I never really thought of this as a series. There are so many different things that different people with different businesses could outsource … so it seems like a bit of a daunting task to create a list of how and where. I’ll give it some thought … maybe outsource it -haha

    Hey Anthony,

    Yeah, if the focus is only on getting it cheaper … all I can say is that’s never worked for me. I’ve always had good success by going after a list of things that make up “the whole package”.

    The 4 Hour Work Week is a great concept. A lot of large (and even small companies in the last couple years) have had great success by outsourcing. Then of course there are all the horror stories. Again, gotta have the whole package.

  7. Steve,

    Perfect! Your business is a living, breathing talent pool.

    You make a great point, because it’s a lot easier to cut outsourced talent loose than to put someone inside your organization on the chopping block. And then there’s the value of paying for only what you need. And only as you need it.

    Great points!

  8. Your other option would be to insource, rather then oursource.

    I used to live in Australia, but almost a year ago I packed everything up and moved to Thailand for the fact that I can employ staff at a fraction of the cost in Australia.

    For the cost of 1 developer in Aus, I have 3 developers with different talents, a marketing coordinator, and a personal assistant to help me off load my day to day tasks.

    Not to mention living costs and office rent is next to nothing over here.

  9. Todd,

    “Insourcing”, great concept. I know a few people who have traded the rat-race for beach-side businesses where the costs are much lower. They’re pretty happy people.


 

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