outsourcing pros and cons
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Concluding The Outsourcing Interview From Stefan
This is the conclusion and last part of the outsourcing interview from Stefan from Germany, who lives the Four Hour Work Week lifestyle in Thailand.
Click here to read part 21 – How to keep your assistant motivated
Summary:
- In this interview you can learn about hiring process, about the tools you need to communicate to your assistant like video instructions and online productivity tools.
- We have also discussed about the different services that are out there like the Fiverr, Mechanical Turk, oDesk and other services in this outsourcing interview.
- You would also learn how to train your virtual assistants with new skills and how to motivate them to build their inner confidence and initiative.
Start of the Interview:
Francis:
In this outsourcing interview, I could answer your questions or try to answer your questions directly. But the website has grown pretty big and there’s a lot of free information on it and in my humble opinion, I think there’s lots of lessons to be learned.
So if you do have free time, please take the time to check out different sites. Although it’s a lot of stuff to read, I think if you implement the lessons from my site; you might be able to save time on the long run.
Especially about the hiring process, about the tools you need to communicate to your assistant like video instructions and online productivity tools. And the different services that are out there like the Fiverr, Mechanical Turk, oDesk and other services.
So if you haven’t had time to take an overview about this, please look at it and see if you cannot increase the quality of your hiring strategy.
Stefan:
Yes.
Francis:
Promise?
Stefan
I have to change my hiring process because it’s not working yet.
Francis:
That’s right.
Stefan:
it’s not giving the results that I want to have. But I’m most likely would only go for long stuff in the future. There are two things that I will definitely change. One thing is a way bigger…how do you say this…
Francis:
So you’re looking forward to build a bigger team of people who will be working at your project at the same time.
Stefan:
In the beginning, for like the first 5 hours and then shave off 50% of the people. And then let the rest work another 5-10 hours. Shave again the half of them. And then, figure out one person. But all of that is not for an immediate project.
Because when I need the immediate results, they most likely won’t deliver that. So, it’s basically just dummy work to find someone who is able to improve himself and become my virtual assistant for the future.
Francis:
One word of warning to this, please don’t be too nearsighted. If you hire someone for 3 hours then fire them because the first 3 hours were not good. You might be losing out. Some people need some time and I’m not talking about several weeks but at least 1 or 2 weeks.
So if you decide to hire several people and keep only the best of them; I would always propose that you hire 2 people for 2 weeks. And after 2 weeks, you keep the winner. Do not work with more than 2 people at a time because you will lose the overview. Also, you will lose too much money in a short period of time.
And always by pairs of 2 against 2 weeks, check the performance objectively by the people. See how often they reply, how willing they are, how motivated they are and don’t let your time invested into 1 person be lost too easily. So always think about your second chance if makes it worth it in the long run.
Stefan:
Yup. But again, as I said, this is rather a long term thing. From my experience, I think I can conclude that if I need a job done right now like let’s say in 1 week or 2 weeks, 4 weeks or whatever…
I would have to train someone first. That doesn’t work out. So I’d rather do that on my own right now.
Francis:
Okay. So I think that’s a good bottom line for this outsourcing interview. For important short term projects, figure it out on your own first. But build the basic building blocks so that you can have 1 or, perhaps, several long term assistants in the future.
Stefan:
Yes. For the future project, if you already have someone who is able to do various things then okay. But if you don’t have anybody, don’t search for that person because most likely it won’t work. That’s my experience for short time.
Francis:
Yeah, for short time. For long term, you would…
Stefan:
But let’s say for 2 weeks the project has to be done or like in 4 weeks, it’s very unlikely that the person whom you hire right now will deliver those results.
Francis:
I think it’s very difficult. Yes, that’s true. I would like end this outsourcing interview from this part about the motivation of the virtual assistant unless you have a final question about this.
Stefan:
No. No further questions.
Francis:
Okay. So thanks for that.
Ethical Issues With Outsourcing to Under-Developed Countries
From The Point Of View Of My Virtual Assistant
As a virtual assistant, I never thought about ethical issues of outsourcing work, perhaps because it is not hurting me enough to think about it. But morally speaking as a freelancer, I am not ashamed working as an online worker.
I don’t think that there are any ethical issues while working as a virtual assistant. In fact, it is in favor of my country because this way, foreign currency reserves of my country increase.
In India, Pakistan and Bangladesh, a high number of people (manpower) have migrated to other richer countries and they sent a lot of money to their families regularly and these foreign remittances play a vital role in their economic stability.
But if I think vice-versa, I think there would be some ethical issues especially when it comes to unemployment and I know US and Europe are also facing some swear unemployment issues.
Outsourcing income is not too attractive
In my country, a very nominal number of people are considering “outsourcing” as their profession. If I look around my surroundings, I only know three people doing outsourced work and I am one of them.
Although they get a good amount of income after the currency conversion rates but still the pay rate in these countries is still more handsome than an outsourced job until you are an expert of your field. I am not saying this by judgment, I am quoting this statement after interviewing various providers from oDesk and getting relevant information from them.
Job insecurity
Also the “job-insecurity” is a big drawback of this kind of job. This can also be one of outsourcing’s ethical issues from an employer’s point of view. Employers promise regular work by offering a long-term contract, and one morning, when you get up and login to your inbox, you find out that the employer has ended your contract without any notice.
This can break all your dreams about your future and is pretty much similar to being fired from your job and now you will have to struggle to find another job.
Ideally it’s suitable for part-timers or people who prefer working flexible hours until and unless they have some real outstanding skills like latest web designing techniques or are an expert Photoshop designer or a software engineer or programmer etc etc.
Pros and Cons of outsourcing from a VA’s perspective
Pros
- High currency conversion rates.
- Learning prospective.
- Flexible hours.
- Working without any immediate supervision
- Get reward for the work we do, we don’t have any hourly job concept (zero percent), we have either paid monthly with no overtime charges or work on daily wages.
- Over the years, transportation and café charges have been rapidly increased and by working online from home, we can save a lot of money. So our net income is high because our daily expenses are very low.
Cons
- Job insecurity
- Tough completion (due to massive increase of newbies everyday who are willing to work on very low rates)
- Power breakdown and backup issues.
- Withdrawing their earnings.
- If the outsourced work has some explicit content including some adult websites, people from this part of the world do not prefer doing such jobs and this can be one of the ethical issues of outsourcing.
Bottom line:
Although I agree that this is a pretty sensitive topic and ethical issues about outsourcing are being discussed in every medium of information, but still I own my words that outsourcing is ethical for both employers and providers.
An employer reduces his production cost by hiring comparative labor and a provider gets a sufficient amount of money to earn bread for his family.
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