Home – New Forums Starting your journey Outsourcing and Business

  • This topic is empty.
Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
    Posts
  • #982390
    Jenn75
    Member
    • Total posts: 4
    Up
    0
    ::

    Hey, Jenn here.
    So I’ve been looking into outsourcing lately for my web development business. There’s heaps of people out there, so I wondered what I would need to do business-wise?

    Correct me if I am wrong as I’m just guessing, but if I were to outsource work they would just be like hiring a contractor. I would pass them the job; they would do the work; they invoice me for their time (regardless of where they are in the world?); and I would pay them and get a receipt (which I can claim as an expense?).

    Is there anything I am missing? Or is it really that simple?

    Cheers

    #1136567
    Greg_M
    Member
    • Total posts: 1,691
    Up
    0
    ::

    Yep, it’s really that simple.

    It’s producing a product that’s saleable using this method that’s tricky.

    #1136568
    James Millar
    Participant
    • Total posts: 1,739
    Up
    0
    ::
    Jenn75, post: 155590 wrote:
    Hey, Jenn here.
    So I’ve been looking into outsourcing lately for my web development business. There’s heaps of people out there, so I wondered what I would need to do business-wise?

    Correct me if I am wrong as I’m just guessing, but if I were to outsource work they would just be like hiring a contractor. I would pass them the job; they would do the work; they invoice me for their time (regardless of where they are in the world?); and I would pay them and get a receipt (which I can claim as an expense?).

    Is there anything I am missing? Or is it really that simple?

    Cheers

    It would be nice if it were that simple. Compliance is what brings it undone. There is a significant volume of tax law, super law and employment law that applies to contractors (even those working overseas). Just be aware of your obligations first.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1136569
    BizTechspert
    Member
    • Total posts: 12
    Up
    0
    ::

    There are two different ways to do it. Outsourcing is where you have someone continually complete jobs (full-time or part-time), out-tasking is when you give them a job once and then move to the next person. We are currently hiring 12 Virtual assistance that do a whole range of tasks for us. 4 of them are web developers to design websites for our clients. we have one for our social media, a few for content creation and transcribing, a video editor and a graphics designer and the list goes on… We do not pay any super or tax, we claim most of it as a business expense and we could not imagine running our business any other way. if you have any questions on outsourcing, please, i am more than happy to he help you over the phone or email.

    0402 366 423
    [email protected]

    Cory Harding :)

    #1136570
    TheGoldenGoose
    Member
    • Total posts: 860
    Up
    0
    ::

    It’s that simple!

    Although, the hardest part is finding good, reliable, quality people to outsource to..

    #1136571
    bluepenguin
    Member
    • Total posts: 1,026
    Up
    0
    ::

    I don’t mean to be a meanie, but hopefully this will be helpful to you:

    I’ve recently given up on outsourcing to web developers after about 3 years as I found it to be more trouble than it was worth.

    The major issue I found was that websites tend to be ongoing long-term projects and contractors just want to build a site, get paid and forget about it.

    When a client comes back to you in a few weeks, months or years because something wasn’t done right, they want to add a component, or the site has been hacked – it can be very hard to get the work done quickly and for a reasonable price.

    I’m currently facing the problem that all of the sites I’ve had created for my clients are built on an outdated CMS and open to security issues. I didn’t realise this would be a problem 3 years ago, and the developer I was using didn’t care (and thus, didn’t inform me). He now wants $500 to upgrade each site, which may be reasonable, but it’s something that should have been explained to each client before the sites were built (and now hacked in some cases). As he holds the licenses to some of the components used to build the sites, has all of the working files, and understands the way the sites are built, so it’s not quite as easy as just getting someone else to do it.

    The second biggest issue I’ve found is that web developers are notorious for charging more than they quoted for. This is a huge headache when you have already quoted a client. Maybe I’ve just been unlucky, but all of the web people I’ve used tend not to be very details orientated – they don’t think a project through properly before quoting which means they will often underestimate how much work is involved. They also tend to miss a lot of details when building the sites which means you have to send them a few big lists of revisions, which isn’t often met with great enthusiasm.

    So if you go ahead with this, I’d encourage you to come up which some systems and processes that ensure that you retain complete control over the projects, their pricing, and their accessibility in the future – even once the original developer is long gone.

    And if you don’t have a decent understanding of web development, get learning. This will give you the ability to see whether a job is being done properly, what’s involved in each project and it will help you to efficiently and effectively communicate with developers.

    #1136572
    James
    Participant
    • Total posts: 268
    Up
    0
    ::

    Outsourcing only works if it is very closely managed and documented. Make sure you have policies and processes in place before looking for candidates.

    Make sure you have backup plans for your backup plan. At the end of the day you are the only party liable to your client.

    The practice may also influence your business insurance premium. I remember seeing some notes about Contractors when filling out our application.

    If you are going to use offshore outsourcers, that is another level of risk entirely. More often than not it is more trouble than it’s worth.

    bluepenguin, post: 156534 wrote:
    I’m currently facing the problem that all of the sites I’ve had created for my clients are built on an outdated CMS and open to security issues. I didn’t realise this would be a problem 3 years ago, and the developer I was using didn’t care (and thus, didn’t inform me).

    As with all technology, websites have a life cycle. If a cheap website is still operational after 3 years that is an impressive life span. Just as laptops need to be upgraded, so do websites. Technology changes.

    Use the opportunity to sell them a whole new website. I’m certain each business has evolved dramatically since the website was originally created.

    bluepenguin, post: 156534 wrote:
    The second biggest issue I’ve found is that web developers are notorious for charging more than they quoted for.

    Some contractors manage this better than others but unfortunately this part of custom development. Scope creep is a natural process by which the customer discovers what they truly want.

    #1136573
    Quinn Askeland
    Member
    • Total posts: 16
    Up
    0
    ::
    Jenn75, post: 155590 wrote:
    Is there anything I am missing? Or is it really that simple?

    Hey Jenn,

    Yes and No as you can see from the other responses….

    TheGoldenGoose, post: 156494 wrote:
    It’s that simple!

    Although, the hardest part is finding good, reliable, quality people to outsource to..

    Old school traditional hiring and virtual outsourcing are the same in the sense that at the end of day you need “good, reliable, quality people”. Most people when recruiting virtually forget that they are dealing with people. Things like simply picking up the phone during the selection process will make a world of difference.

    Just the same as if you were hiring (and loosing) developers in an office environment over time developing systems so that you can easily hand-over projects to newcomers is important.

    Hope this helps!

    Outsourcing was the number one reason I was able to grow my business and have some free time in my day at the same time. Like anything in business there are challenges and things you will need to learn (as well as some tips and tricks) but the opportunity to outsource has never been better.

    Quinn

    #1136574
    Joe @ Clik Clik
    Member
    • Total posts: 20
    Up
    0
    ::
    Jenn75, post: 155590 wrote:
    Hey, Jenn here.
    So I’ve been looking into outsourcing lately for my web development business. There’s heaps of people out there, so I wondered what I would need to do business-wise?

    Correct me if I am wrong as I’m just guessing, but if I were to outsource work they would just be like hiring a contractor. I would pass them the job; they would do the work; they invoice me for their time (regardless of where they are in the world?); and I would pay them and get a receipt (which I can claim as an expense?).

    Is there anything I am missing? Or is it really that simple?

    Cheers

    Hi Jenn,

    I have outsourced a lot of things over the last few years and am really confident with it now but definitely got burnt a few times early on. I generally use Elance to find people but will only hire people that have 5 star. You also want to read their testimonials to make sure they are not from a single person each time.

    I have outsourced some jobs that are 30K plus so you get a little bit nervous but I have found using an escrow service and breaking the job into small milestones helps so you can pull the pin if it doesn’t work. Make sure you interview them over video as well.

    Only other piece of advice I could give is that don’t just look at the price, look at their track record and experience. I have tried going for the “cheapest” only to lose money because they were not fluent in English and couldn’t understand the task properly. This is why I say interview first and only do small milestones to start with so you reduce the potential loss. I seldomly have any issues these days and have a lot of fun with it.

    Hope this helps.

    #1136575
    Quinn Askeland
    Member
    • Total posts: 16
    Up
    0
    ::
    Joe @ Clik Clik, post: 158186 wrote:
    Hi Jenn,

    I have outsourced a lot of things over the last few years and am really confident with it now but definitely got burnt a few times early on. I generally use Elance to find people but will only hire people that have 5 star. You also want to read their testimonials to make sure they are not from a single person each time.

    I have outsourced some jobs that are 30K plus so you get a little bit nervous but I have found using an escrow service and breaking the job into small milestones helps so you can pull the pin if it doesn’t work. Make sure you interview them over video as well.

    Only other piece of advice I could give is that don’t just look at the price, look at their track record and experience. I have tried going for the “cheapest” only to lose money because they were not fluent in English and couldn’t understand the task properly. This is why I say interview first and only do small milestones to start with so you reduce the potential loss. I seldomly have any issues these days and have a lot of fun with it.

    Hope this helps.

    This is great advice!

    I wrote “5 Steps to Hiring A Rockstar VA” (a free PDF download) designed to ensure people don’t get “burnt a few times early on” – unfortunately that is the typical experience.

    Check out my website if you would like it or ask me with any questions. The thing with outsourcing is that it is a learning process mostly for you in the early days so what the 5 Steps does is help you to determine the things that can most easy and successfully be outsourced – that way you can learn and get some wins under your belt early.

    #1136576
    ScarlettR
    Member
    • Total posts: 396
    Up
    0
    ::

    Thanks for asking Jenn, great information for me too!

    #1136577
    Kevin Virtual Coworker
    Member
    • Total posts: 11
    Up
    0
    ::

    Hey Jenn,

    I run an outsourcing company call Virtual Coworker that connects staff in the Philippines with Australian companies.

    I would be happy to get on a call with you and give you objective information on all of your options.

    Cheers,
    Kevin Mallen

    [email protected]
    0412 25 24 23

Viewing 12 posts - 1 through 12 (of 12 total)
  • You must be logged in to reply to this topic.