Tips for Avoiding an Outsourcing Nightmare
You've probably heard the horror stories from those small business owners who have had a negative experience with outsourcing: Maybe they hired a business or a freelancer that eventually disappeared without delivering the final product or service, or perhaps the work that was completed was far below the expected standards of quality.
Outsourcing, like all things in business, does come with risks.
However, you can take several simple precautions to increase your chances of a successful outsourcing experience.
• Know what to expect.
When you outsource, you have little or no control over when the freelancer or business actually works on your project.
Independent contractors and freelancers are not required to work certain hours, unless it has been specified in a contract, so be prepared to loosen the reigns and allow the individual to do her job.
• Determine your exact needs.
What task or tasks will you outsource? Opt for those tasks that are the most time-consuming or at which you are the weakest.
For example, if you aren't a strong writer, consider outsourcing your writing needs to a business or a freelancer that specializes in writing.
Decide what task or tasks you will outsource before you go any further in the process.
• Flush out the requirements.
Know exactly what you want and expect from the business to which you are outsourcing, and put it in writing.
Include such information as project or job scope, milestones, final deadline, project cost, and payment terms.
Be sure that both you and the project manager of the company with which you are working have a full understanding of what you expect from each other.
• Sign a contract.
A contract will protect both you and the business to which you are outsourcing.
Have your lawyer draw up a contract that stipulates the terms and conditions of your working relationship with the company.
Be sure both parties have signed and have a copy of the contract before any work begins.
• Use a Non-Disclosure Agreement (NDA), if viable.
A Non-Disclosure Agreement is particularly popular with small businesses that outsource writing projects.
But, even if you're outsourcing your payroll or another task, you may want to have the company to which you are outsourcing sign an agreement that states they will not disclose any of the information they learn when working with your business.
You can avoid an outsourcing nightmare if you know what to expect from the process and protect yourself, before money ever exchanges hands, with a contract and, if necessary, a Non-Disclosure Agreement.
Outsourcing, like all things in business, does come with risks.
However, you can take several simple precautions to increase your chances of a successful outsourcing experience.
• Know what to expect.
When you outsource, you have little or no control over when the freelancer or business actually works on your project.
Independent contractors and freelancers are not required to work certain hours, unless it has been specified in a contract, so be prepared to loosen the reigns and allow the individual to do her job.
• Determine your exact needs.
What task or tasks will you outsource? Opt for those tasks that are the most time-consuming or at which you are the weakest.
For example, if you aren't a strong writer, consider outsourcing your writing needs to a business or a freelancer that specializes in writing.
Decide what task or tasks you will outsource before you go any further in the process.
• Flush out the requirements.
Know exactly what you want and expect from the business to which you are outsourcing, and put it in writing.
Include such information as project or job scope, milestones, final deadline, project cost, and payment terms.
Be sure that both you and the project manager of the company with which you are working have a full understanding of what you expect from each other.
• Sign a contract.
A contract will protect both you and the business to which you are outsourcing.
Have your lawyer draw up a contract that stipulates the terms and conditions of your working relationship with the company.
Be sure both parties have signed and have a copy of the contract before any work begins.
• Use a Non-Disclosure Agreement (NDA), if viable.
A Non-Disclosure Agreement is particularly popular with small businesses that outsource writing projects.
But, even if you're outsourcing your payroll or another task, you may want to have the company to which you are outsourcing sign an agreement that states they will not disclose any of the information they learn when working with your business.
You can avoid an outsourcing nightmare if you know what to expect from the process and protect yourself, before money ever exchanges hands, with a contract and, if necessary, a Non-Disclosure Agreement.