Outsourcing Conundrum?

Sometimes the decision to outsource can be difficult simply because we can’t see the value.  So I remind myself many times that my business (and job) is generating revenue.  Specifically, with developing and redeveloping processes to accommodate a range of service requirements for various clients needs.  While I am fascinated with accounting, I simply can’t devote the time to become a CPA.  Many immediately agree with that outsourcing decision.  (Tax preparation compares well to shipping and order management software—keeping up with code.)

Our experience regarding outsourcing comes from listening to prospects and clients indicates there is the gut approach insomuch as the venture needs a quick exit if nothing else; or it is calculated and is included in some way in retail pricing if not only for shipping and handling charges.  Those on-line merchants and retailers who keep fulfillment in-house likely have particular needs to include amortizing existing space and/or staff.

Budgeting for mandatory activities can be clearer when paying fees rather than wages and salaries.  And from the smallest in-home on-line merchant to the largest on-line retailer, outsourcing may be the better choice.

For me, other reminders include:

  • Time is wealth, not money
  • Invest in yourself
  • Tend to your enterprise

Outsourcing considerations:

  • Indentify your core competency
  • Day-to-Day Business Activities
  • Calculate Time-to-Mission
  • Calculate Value-to-Mission
  • Peak vs. Valley Sales Activity
  • Compare potential outsource quotations

As it goes here, we rely on outsourcing those services for which we cannot bring certain expertise, supplies, equipment and/or service provisions in-house.   For on-line merchants, the challenge is to make best use of time for marketing.  Certainly, merging the front-end and the back-end provides a level of control, but in reality, one can’t generate more revenue fulfilling an order.