Outsourcing Management
In The Global Economy

Outsourcing management is an important issue for most small and medium size businesses. Even large multi-national companies have an outsourcing strategy and program.

Outsourcing is a key area of your business operations where you can leverage the skills and resources of people all over the world to more efficiently and effectively get things done. When you outsource the tasks that can be done by others you free your time and energies to concentrate on the tasks that only you can do in your business.

Tasks in any organization fall into one of two categories:

  • People tasks, and
  • Things tasks.

People tasks are the tasks in your business that require the



decision making,



management and control, and


abilities of key people within the organization. People oriented tasks are typically performed by CEOs, managers, salespeople, etc.

Examples of people tasks are,

  • Strategic planning and execution
  • Entering into new contracts
  • Sales presentations
  • Building relationships, and
  • Key management functions.

Things tasks are things that people perform within the organization that can often be automated, and/or performed by people that don't have high level responsibility for the success or failure of the organization. Things tasks fall into such job categories as,

  • Web development and design
  • Computer programming
  • Many customer service functions
  • Writing (of books, manuals, etc.), and
  • Customer prospecting.

The next question is when should the things tasks be outsourced? The answer to that question is,

  1. After you have developed a successful system to instruct and train workers on how the things tasks should be performed,
  2. When budgeting for outsourced work is complete, and

  3. When you have determined that outsourcing things would produce immediate growth and development of your organization.

There is no one answer to what should be outsourced and when. It is the function of outsourcing management performed by the respective decision maker within your organization that determines the outsourcing plan and its execution. In small businesses that typically is the owner(s).

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