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Outsourcing Do's and Don'ts

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donnfelker
donnfelker

A presentation which covers the do's and don'ts of business outsourcing from someone who has experience in outsourcing Accounting, various bookkeeping and software development.

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OUTSOURCING Dos and Donts
DONN FELKER ENTREPRENEUR / DEVELOPER / AUTHOR
OUTSOURCING - What is it? Experience - Why - How - Questions
WHAT
India
China
Its MORE than offshore ...
landscaping pool care exterminator car wash OTHER TYPES OF OUTSOURCING
MORE COMMONLY SOUGHT AFTER accounting development virtual assistant
My Experience
Outsourcing Do's and Don'ts
=
Place a dollar amount on your time.
landscaping pool care exterminator car wash Great places to start
I needed help with... accounting virtual assistant development logo design
Accountant : Local Virtual Assistant : India Development : Armenia
Finding an Accountant Referral is best t least one yon e knows a e ever seems lik Quickbooks is key s know this ll ac countant almost a ... when all else fails, Google
Accountant : One Face-to-Face r y once, eve yup, onl Tools : Quickbooks Online : Email : Phone : Scanner : Mobile (with Camera)
How Much Do They Cost? I go local with accountants, so... standard rates.
What does a Virtual Assistant do? Basic bookkeeping Research in a known domain Email Management Calendar Management and more...
Finding an Virtual Assistant Learn from others (Ferris) e else or anyon Again, Quickbooks is key inator comm on denom lowest more
Finding a Virtual Assistant Brickwork India : brickworkindia.com Your Man In India : yourmaninindia.com Friends with : F-1 & H-1 Visas Local VAs : Craigslist ... and more ossible, us e a firm if p such as ..
Tips for Finding a Good VA Be clear and very specific in your tasks Specify the skills required nd Find 3-5 possible VAs nt to fi l vestme VA wil al in great ensive initi d a xp fin ore e to usua lly b em Award 3 of those VAs the same job. Pay them all. Award the best the continuing work.
How much does a VA usually cost? It varies, depending on job nth 0 transac tions a mo ~ 40 example: average of My VA performs bank account reconciliation, transaction matching and item categorization in Quickbooks online. Price: $250.00 for 20 hours ($12.50/hr) round 0 hour contract a I re new my 2 onths every 3 m
Estimating the total cost of a VA Total Price + 30% = Total Investment $250 (per qtr) * 4 Qtrs = $1000.00 (Total Price per year) etween moun t of time b average a nths contra ct is 3 mo renewal of $1000 + $300 (30% of 1000) = $1300.00 Total Investment: $1300 a year
Outsourcing Development of Software Multiple Technologies = Headache S, WP7 nd roid, iO e.g. - a Probably the hardest of all outsourcing If you find a great resource, KEEP THEM
Finding Software Development Talent If onshore is within budget, do it. If not use - ne or k is do hard w already : referrals first for you : odesk.com : elance.com more
Test each developer. even if theyre on a team Example Test 1 : goo.gl/zJmXV cess m ore suc easier, Example Test 2 : goo.gl/sE2tk ccess e ss su harder, l
Testing will weed out the incompetent
Tips for building a test Must be able to complete in under 20 mins Must be realistic
Once you find a great resource, KEEP THEM
First Tasks should never be mission critical
How much does outsourcing software cost The classic it depends answer : quality : timeline : poc vs final product : technology used more
My Costs Projects : Android jects ted 6 a ndroid pro : HTTP Communication I ve comple utsourcer same o using the lone this year a : No Graphic Design ple keep it sim $18.36 an Hour for Armenian resource itude would on shore cost s for same level of apt an hour cost me nearly $100
Total Costs ~136 hours worked this year 136 hours * $18.36 = ~$2500 $2500 * .3 = $750 0% add on using sam e formula as before, 3 t of resource ch arge for managemen Total Investment: $3,250 our, If on shore @100 an h 80 this would be - $17,6
General Tips For Outsourcing
Cut the fat early ng, not p erformi t one if theyre o to the nex em, g get r id of th Be very specific in your tasks Ask for confirmation that they understand t the task have them repea words ba ck in their own
If youre not happy, find another one. Go on shore if you prefer.
In the end ... Do it to make your life easier.

More Related Content

Outsourcing Do's and Don'ts

  • 2. DONN FELKER ENTREPRENEUR / DEVELOPER / AUTHOR
  • 3. OUTSOURCING - What is it? Experience - Why - How - Questions
  • 7. Its MORE than offshore ...
  • 8. landscaping pool care exterminator car wash OTHER TYPES OF OUTSOURCING
  • 9. MORE COMMONLY SOUGHT AFTER accounting development virtual assistant
  • 12. =
  • 13. Place a dollar amount on your time.
  • 14. landscaping pool care exterminator car wash Great places to start
  • 15. I needed help with... accounting virtual assistant development logo design
  • 16. Accountant : Local Virtual Assistant : India Development : Armenia
  • 17. Finding an Accountant Referral is best t least one yon e knows a e ever seems lik Quickbooks is key s know this ll ac countant almost a ... when all else fails, Google
  • 18. Accountant : One Face-to-Face r y once, eve yup, onl Tools : Quickbooks Online : Email : Phone : Scanner : Mobile (with Camera)
  • 19. How Much Do They Cost? I go local with accountants, so... standard rates.
  • 20. What does a Virtual Assistant do? Basic bookkeeping Research in a known domain Email Management Calendar Management and more...
  • 21. Finding an Virtual Assistant Learn from others (Ferris) e else or anyon Again, Quickbooks is key inator comm on denom lowest more
  • 22. Finding a Virtual Assistant Brickwork India : brickworkindia.com Your Man In India : yourmaninindia.com Friends with : F-1 & H-1 Visas Local VAs : Craigslist ... and more ossible, us e a firm if p such as ..
  • 23. Tips for Finding a Good VA Be clear and very specific in your tasks Specify the skills required nd Find 3-5 possible VAs nt to fi l vestme VA wil al in great ensive initi d a xp fin ore e to usua lly b em Award 3 of those VAs the same job. Pay them all. Award the best the continuing work.
  • 24. How much does a VA usually cost? It varies, depending on job nth 0 transac tions a mo ~ 40 example: average of My VA performs bank account reconciliation, transaction matching and item categorization in Quickbooks online. Price: $250.00 for 20 hours ($12.50/hr) round 0 hour contract a I re new my 2 onths every 3 m
  • 25. Estimating the total cost of a VA Total Price + 30% = Total Investment $250 (per qtr) * 4 Qtrs = $1000.00 (Total Price per year) etween moun t of time b average a nths contra ct is 3 mo renewal of $1000 + $300 (30% of 1000) = $1300.00 Total Investment: $1300 a year
  • 26. Outsourcing Development of Software Multiple Technologies = Headache S, WP7 nd roid, iO e.g. - a Probably the hardest of all outsourcing If you find a great resource, KEEP THEM
  • 27. Finding Software Development Talent If onshore is within budget, do it. If not use - ne or k is do hard w already : referrals first for you : odesk.com : elance.com more
  • 28. Test each developer. even if theyre on a team Example Test 1 : goo.gl/zJmXV cess m ore suc easier, Example Test 2 : goo.gl/sE2tk ccess e ss su harder, l
  • 29. Testing will weed out the incompetent
  • 30. Tips for building a test Must be able to complete in under 20 mins Must be realistic
  • 31. Once you find a great resource, KEEP THEM
  • 32. First Tasks should never be mission critical
  • 33. How much does outsourcing software cost The classic it depends answer : quality : timeline : poc vs final product : technology used more
  • 34. My Costs Projects : Android jects ted 6 a ndroid pro : HTTP Communication I ve comple utsourcer same o using the lone this year a : No Graphic Design ple keep it sim $18.36 an Hour for Armenian resource itude would on shore cost s for same level of apt an hour cost me nearly $100
  • 35. Total Costs ~136 hours worked this year 136 hours * $18.36 = ~$2500 $2500 * .3 = $750 0% add on using sam e formula as before, 3 t of resource ch arge for managemen Total Investment: $3,250 our, If on shore @100 an h 80 this would be - $17,6
  • 36. General Tips For Outsourcing
  • 37. Cut the fat early ng, not p erformi t one if theyre o to the nex em, g get r id of th Be very specific in your tasks Ask for confirmation that they understand t the task have them repea words ba ck in their own
  • 38. If youre not happy, find another one. Go on shore if you prefer.
  • 39. In the end ... Do it to make your life easier.

Editor's Notes