A presentation which covers the do's and don'ts of business outsourcing from someone who has experience in outsourcing Accounting, various bookkeeping and software development.

1. OUTSOURCING
Do’s and Don’ts

2. DONN FELKER
ENTREPRENEUR / DEVELOPER / AUTHOR

3. OUTSOURCING - What is it?
Experience - Why - How - Questions

4. WHAT

5. India

6. China

7. It’s MORE than offshore ...

8. landscaping pool care exterminator car wash
OTHER TYPES OF OUTSOURCING

9. MORE COMMONLY SOUGHT AFTER
accounting development
virtual assistant

10. My Experience

12. =

13. Place a dollar amount on your time.

14. landscaping pool care exterminator car wash
Great places to start

15. I needed help with...
accounting virtual assistant development
logo design

16. Accountant : Local
Virtual Assistant : India
Development : Armenia

17. Finding an Accountant
Referral is best t least one
yon e knows a
e ever
seems lik
Quickbooks is key
s know this
ll ac countant
almost a
... when all else fails, Google

18. Accountant : One Face-to-Face
r
y once, eve
yup, onl
Tools : Quickbooks Online
: Email
: Phone
: Scanner
: Mobile (with Camera)

19. How Much Do They Cost?
I go local with accountants,
so... standard rates.

20. What does a Virtual Assistant do?
Basic bookkeeping
Research in a known domain
Email Management
Calendar Management
and more...

21. Finding an Virtual Assistant
Learn from others (Ferris)
e else
or anyon
Again, Quickbooks is key
inator
comm on denom
lowest
more

22. Finding a Virtual Assistant
Brickwork India : brickworkindia.com
Your Man In India : yourmaninindia.com
Friends with : F-1 & H-1 Visa’s
Local VA’s : Craigslist
... and more
ossible,
us e a firm if p
such as ..

23. Tips for Finding a Good VA
Be clear and very specific in your tasks
Specify the skills required
nd
Find 3-5 possible VA’s
nt to fi l
vestme VA wil
al in “great” ensive
initi d a xp
fin ore e
to
usua
lly b
em Award 3 of those VA’s the same job.
Pay them all. Award the best the continuing work.

24. How much does a VA usually cost?
It varies, depending on job
nth
0 transac tions a mo
~ 40
example: average of
My VA performs bank account reconciliation,
transaction matching and item categorization in
Quickbooks online.
Price: $250.00 for 20 hours ($12.50/hr)
round
0 hour contract a
I re new my 2 onths
every 3 m

25. Estimating the total cost of a VA
Total Price + 30% = Total Investment
$250 (per qtr) * 4 Qtrs = $1000.00 (Total Price per year)
etween
moun t of time b
average a nths
contra ct is 3 mo
renewal of
$1000 + $300 (30% of 1000) = $1300.00
Total Investment: $1300 a
year

26. Outsourcing Development of Software
Multiple Technologies = Headache
S, WP7
nd roid, iO
e.g. - a
Probably the hardest of all outsourcing
If you find a great resource, KEEP THEM

27. Finding Software Development Talent
If onshore is within budget, do it.
If not use -
ne
or k is do
hard w already
: referrals first for you
: odesk.com
: elance.com
more

28. Test each developer.
even if they’re on a team
Example Test 1 : goo.gl/zJmXV cess
m ore suc
easier,
Example Test 2 : goo.gl/sE2tk
ccess
e ss su
harder, l

29. Testing will weed out the incompetent

30. Tips for building a test
Must be able to complete in under 20 mins
Must be realistic

31. Once you find a great resource, KEEP THEM

32. First Tasks should never be mission critical

33. How much does outsourcing software cost
The classic “it depends” answer
: quality
: timeline
: poc vs final product
: technology used
more

34. My Costs
Projects : Android
jects
ted 6 a ndroid pro : HTTP Communication
I ’ve comple utsourcer
same o
using the lone
this year a
: No Graphic Design
ple
keep it sim
$18.36 an Hour for Armenian resource
itude would
on shore cost s for same level of apt
an hour
cost me nearly $100

35. Total Costs
~136 hours worked this year
136 hours * $18.36 = ~$2500
$2500 * .3 = $750
0% add on
using sam e formula as before, 3
t of resource
ch arge for managemen
Total Investment: $3,250
our,
If on shore @100 an h
80
this would be - $17,6

36. General Tips For Outsourcing

37. Cut the fat early
ng,
not p erformi t one
if they’re o to the
nex
em, g
get r id of th
Be very specific in your tasks
Ask for confirmation that they understand
t the task
have them repea
words
ba ck in their own

38. If you’re not happy, find another one.
Go on shore if you prefer.

39. In the end ...
Do it to make your life easier.