Outsourcing Costs (Book Excerpts)

Curious about outsourcing costs? Our book, “Outsourcing Through RentACoder” explains it all. Below are a few selected snippets that describe its importance and why you, as an outsourcer, should care.

For details, head on over to this page and order the book. Then complement what you find here with the content in our growing outsourcing articles library (the book’s ‘online extension’). Outsourcing Through RentACoder is a 418 page step-by-step user guide for entrepreneurs who want to reduce their workload and increase productivity at the same time.

Excerpts:

• By any other name (contracting, sourcing, subcontracting, farming it out, offshoring, etc.), outsourcing uses third-party resources to (1) provide services, (2) lower costs, and/or (3) increase production. (page 39)
• Outsourcing provides access to lower costs made available through offshoring and “labor arbitrage.” (page 40)
• One of the main reasons for outsourcing is to reduce costs, but it’s not always necessary to send work overseas in order to save money. Savings are the result of reducing labor costs regardless of where they originated from. (page 62)
• More business means more work. More work means more need for help. More need for help means more outsourcing. And more outsourcing means lower costs, but higher profits. (page 74)
• “What costly activities in your current budget could be eliminated or reduced by moving them to RentACoder? That’s just one of the questions this book can answer.” (page 81)
• Financial risks address the costs of outsourcing. They can include a) the cost of a coder’s fee vs. the cost of in-house expenses, b) the cost of replacing one RentACoder contractor with another, and of course, c) the cost of outsourcing failure altogether. (page 98)
• After taking a thorough look at some of the criticisms, costs, and liabilities of outsourcing, you might think, “What’s the point?!” (page 104)
• It doesn’t matter if you’re a hundred thousand employee corporation or a single online web designer – planning your outsourcing venture is the most cost effective thing you could ever do. (page 113)
• Don’t try to be a big shot and create an outsourcing department when you’re outsourcing small jobs. Outsourcing departments are really relevant to nation-wide or global corporations only. Small businesses can bypass this often, costly step. (page 131)
• Quite often, coders have the experience, equipment, and expertise needed to streamline a process already. That streamlining may cost a little extra — and it may introduce a few risks, but the time it could save could be worth it. (page 145)
• Types of contact information made available include screen names, email addresses, and phone numbers for projects costing 500$ or more. (page 168)
• It also costs to use RentACoder’s Bulletin Board. Currently, the projected cost is $150. But since the program is still under development, the present cost is just $50. (page 177)
• We know from being on the other side of outsourcing that cost is often the first and only decision factor in selecting a coder. (page 218)
• RentACoder’s All Coder Competition ranks each coder by work performance based on job cost, job number, positive feedback, and status reports. (page 240)
• Lowered costs is the number one reason why businesses outsource overseas. Labor rates in countries outside of the U.S. are significantly lower than what they are here at home, and the same goes for RentACoder bids from the same regions. (page 258)
• As you can see, the entire system is a bit more complicated than Paying for Deliverables, but aside from monitoring capabilities, there are a few distinct advantages of Paying for Time. One of those advantages is lower costs. (page 284)
• When outsourcing costs become a concern, try to use transitioned assets as a bargaining chip. In exchange for supplying equipment, you may be able to lower a project’s fixed fee. (page 294)
• ‘Reason-regardless,’ it’s important that certain procedures are followed to the “T.” Failing to follow protocol could increase costs beyond belief. (page 349)

Order Outsourcing Through RentACoder:

Outsourcing Through RentACoder is a 418 page, 7.44″ x 9.68″ paperback book, fully illustrated and filled with everything you could possibly need to successfully outsource your tasks the first time.

Inside, you’ll find a slew of outsourcing know-how, over a dozen online checklists, worksheets, and more. It also introduces an outsourcing roadmap exclusive to the RentACoder website. Order it here.