Tag Archives: business management

Avoid Mistakes Business Owners Make When Outsourcing IT Department

Avoid Mistakes Business Owners Make When Outsourcing IT DepartmentThere is no denying that in today’s ever-changing business world, outsourcing comes as a blessing. An opportunity to find an easy way out of any unpleasant IT project by outsourcing it seems especially tempting. Still, although IT industry discovered how to take even the most mundane human activities and turn them into automated apps, some kind of solution that will magically solve all the IT outsourcing-related problems is sorely missing. That is why we will have to tackle this problem in the old-fashioned analog way, and give you a short list of the most dangerous mistakes you should avoid when outsourcing IT department.

Strike the Right Balance Between the Negligence and Being a Control-Freak

First and foremost, the whole point of outsourcing is to let the people who are more competent at some area to solve all related problems instead of you. If you are constantly crossing the boundaries, and squash vendor’s efficiency by over-dictating the way how the IT department should be run, you are dooming the whole project from the get-go. This, however, does not mean that you can outsource your whole brain. Don’t think even for a second that your job is over once your company signs the outsourcing contract. You are the only person who knows how the project’s end product should look like. If you deprive vendors of your valuable input and feedback, you are doing equally bad thing, as if you micromanaged everything.

Don’t Outsource Things That Can Be Easily Automated

Do not get us wrong, outsourcing IT projects can be immensely helpful, but take a break just for a second before signing anything, and ask yourself is there any real need to outsource some activities that can be easily automated. Even if you are not aware, there are dozens of things which can run on autopilot, so do your research before you make any move. We will give you a few of them to get you started:

  • Approving Twitter followers
  • Sending out campaign emails, postcards, and newsletters
  • Sorting through spam comments
  • Responding to opt ins on the website

Don’t Skip the Thorough Preparation

Using outsourcing as a quick remedy for some unexpected IT problems without proper preparation usually leads to subpar results, at best. It is not that uncommon for small business owners to start negotiating contracts with vendors before even evaluating the scope and the end goals of the project. Involving the existing staff as much as possible and preparing them for the future IT tasks will cut the devastating “job loss” rumors from the start. Finally, you should make sure that you and your vendors have all the necessary tools to make the completion of the project possible. If you, for example, do not have proper remote access software, chances for such outcome will be reduced.

Don’t Rely on Outsourcing the Things You Don’t Understand

As we mentioned above, outsourcing can be a great short-term solution for exploring new business areas. Still, if you do not cast some light over them at some point, you are running a risk of leaving a large chunk of IT related decision-making to strangers. You will not even be able to provide some basic guidelines and feedback because you are still in the dark. Today’s technology makes outsourcing a vital tool for building leanness, efficiency, and competitiveness. If you are using it as a cheap way to offload some work, you are doing it wrong.

Take Care of Your Intellectual Property

Intellectual property has always been a moot point of the whole outsourcing game. That does not mean, though, that you should abandon the game completely. Just be sure to double-check all the ambiguous issues and write a solid, failure-proof contract protecting your company’s best interests. Your IP can also be hurt as a result of accidental leaks, or cyber-attacks. Making sure that your vendors are equipped with secure facilities and computers devoid of any kind of removable media is recommended.

With all the things said, we can only conclude that first and the most important prerequisite for successful outsourcing lies in being careful, and re-examining all of your decisions. If you manage to stay clear-headed and with two feet on the ground through negotiations, we are sure that your IT project will be nothing short of successful.

Navigating your Business through a Crisis – Top Tips

financial-crisis-544944_1280Unless you are insanely successful or extremely lucky as a business owner, you will most likely experience a crisis or two that might seriously jeopardize the growth or even the very existence of your business.

There are a number of reasons for the crisis that might have befallen you: from the downturn in national economy or your general area to mistakes that someone who works for you have made (or that you may have made). Sometimes, a new competitor shows up with a better line of products or lower prices that you simply cannot match and you start losing clients. The world of business is a vicious one and crises sometimes cannot be avoided.

In such situations, it is of paramount importance to know how to get out of trouble and how to keep your business running. Today, we will be talking about a few things to keep in mind when doing just that.

Identify the Root of the Crisis

In most cases, a business crisis you have to deal with will have one major cause. Sometimes it can be a string of events and little problems that mass together and cause a crisis, but even then, there is usually the biggest problem and the most obvious cause. It is essential to identify the exact root of the crisis because it will help you form the plan for action and also because it will help you avoid similar crises in the future.

Form a Plan of Action

Once you understand where the problem lies, it is time to start thinking about what you can do. You need to factor in everything that you can think of when making the plan. You should think about the time, the money and the work that needs to be spent on taking care of the problem. You need to work out who will do what, what you will be doing, how closely everything needs to be monitored and so on.

Getting Help from Outside

There are crises when you might not be able to take care of everything with the organization that you have in place. Sometimes, you will need a bit of help from outside and you should never be too proud to implement new solutions that will help you weather the storm.

For instance, you might start thinking about outsourcing parts of your organization or even replacing some of your staff with outside solutions. This can save a lot of money and can make for a more sustainable business model. If you choose to do this, the best way to approach it is with some help from a company like Globality Consulting who will provide you with exactly the solutions that your business needs to mitigate the crisis.

Another way to get help from outside is to start using software solutions that will help you cope with a crisis. An example of this is insolvency software such as Encompass which will help you handle the issue of insolvency which is one of the direst crises a business can experience.

Sticking to the Plan

One very important thing to do when trying to climb your way out of a business hole is to stick to the plan that you formulated. If you give up too soon, you might stop everything before it had the chance to yield results. If your plan was made carefully and meticulously, the results should come sooner or later. Of course, there are times when you cannot wait and there are times when you will discover that the plan might not have been the best. In such situations, it would be foolish to stick to it blindly.

In conclusion

To sum everything up – identify the cause, formulate a plan, do not be afraid to go outside for part of the solution and stick to the plan. If you have done everything right and if you are not particularly unlucky, the crisis should be taken care of.

 

Image courtesy of Pixabay.com

Outsourcing the IT Department – a Good Idea?

man with computer
For most small businesses, outsourcing an IT department is not even debated. The requirements of having an in-house IT department and the costs of running it make it impossible for small businesses to feature their own IT people. However, in some advanced small businesses, mid-sized businesses and especially in big firms and companies, outsourcing is not the only choice and such businesses might want to have their own IT department. So, for such businesses, is outsourcing the IT department a good idea?

We believe that it is and we will give you a few reasons why this is the case.

The Cost

The costs of running an in-house IT department can be quite high. For one, you are adding one or more persons to your payroll; you need to pay taxes for them, you need to take care of their social security and health insurance. On top of all that, your IT department will require equipment, software and a whole other range of stuff to keep them up and running. This will continue to happen as technology advances and you will constantly be putting money into your IT department.

On the other hand, with outsourced IT department, you will be spending only a fraction of that, as you will not be their only client and as they will spread the expenses of their operation across a number of clients, thus reducing the actual price that you will be paying.

The Technology

We have touched upon this in our previous bullet point, but it is important enough for us to dedicate a whole paragraph to it. Namely, we are talking about the technology which is always crucial for the IT department and the work they can do for you. No matter how hard you try, your IT department will always lag behind when it comes to technology (unless you happen to run a giant company with near-unlimited resources). It is difficult and extremely expensive to stay in touch with all of the latest developments in the tech industry.

On the other hand, you have professional service providers who do only this and whose livelihood depends on delivering the latest in tech solutions and services. When you outsource your IT department, you ensure that you get the latest and the highest-quality technology.

The Expertise

The companies that do outsourced IT for other businesses, the so called managed services providers (MSPs), employ the best talent in the industry or otherwise they would not be able to do their job properly and they would not succeed. Their experts have the necessary education and they are always doing everything they can to stay on top of their game.

On the other hand, you can never be certain that the IT people you hire yourself are that good. In fact, many IT departments are run by people who are less-than-spectacular at their job and that is not something you want for your business, is it?

The Future

Yes, we understand that this sounds a bit abstract, but stay with us, we know where we’re going with this. When we are talking about future, we mean both the future of your IT system as well as the future of your company in general.

As we said, outsourced IT service providers have more expertise and they will make it much easier for you to implement new tech solutions to your company. People from a website design firm Infinity Technologies have told us that when they deliver new websites or custom-made solutions to businesses, they have much better experiences when they deal with outsourced IT departments due to their superior expertise.

Also, when you outsource your IT department , everyone who works for you can concentrate on what is truly important – doing their actual work that drives your business forward and that makes it more successful.

Closing Word

Of course, when outsourcing your IT department, you need to know that you are getting the best you can get and this is where a consulting company like Globality Consulting shows its strength, putting you in touch with only the best and most reputable MSPs out there.

Smart Ways for Business Owners to Save Money

Cutting the Costs
There are two main ways in which a business owners can increase the profits. The first of these is to boost the income by getting more customers and selling them more and the second of these is by cutting the expenses that every business demands. Today, we will be talking about the latter – the smartest ways and the most painless in which a business owner can cut the costs of operation to save money.

Stop wasting energy, paper and gas

Depending on the nature of your business and the size of your offices, you will probably be wasting quite a bit of money on electricity, water, paper, as well as gas in case you need to travel a lot because of your work or if you have a business that involves transportation of any kind.

You can reduce the amount of electricity that you spend by introducing fluorescent lights, by using A/C only when necessary and by providing proper insulation for your office. Water can be spent by using water-saving fixtures and by promoting a culture where water is not wasted in the office. To save money, print only what is most important and crucial. If you wish to save on gas, find out more about gas-saving driving techniques and solutions.

Outsource everything you can

There is a reason why so many businesses outsource many of their departments overseas. It may not be too great for the local economy, but you will get basically the same kind of service and efficiency at much reduced prices. Of course, you need to find someone like Globality Consulting to find you the perfect partners, but once you do it, you will notice that you are spending much less for certain jobs to be done.

Go online for business promotion

When compared to the more traditional promotional techniques, online business promotion cost just a fraction and you would do well to start employing these various techniques through which internet will become  your best advertising ally. Make use of the various social networks that everyone uses these days. Register your business with free online directories. If you want to sell online, for a start you can do this on eBay or Amazon and save thousands on web design of your web store. Blog and share your knowledge among other experts from your industry. Soon, word will spread about your expertise.

Be Smart with Money

Look out for office space deals

One of the worst things that you can do for your business money-wise is getting tied up in an office space lease that will not allow you to find anything better for years to come. It is always better to go for shorter-term deals. The reason? Very often, you will find that new office spaces nearby are being offered at a much lower price, which can greatly reduce your costs. Things can get even cheaper if the real estate trends in your area change and the prices drop even further.

Don’t buy – hire

In many businesses, there are occasional requirements that might warrant some equipment that you usually do not use over the course of a year. In such situations, it is much better to hire and rent than to buy. For instance, if you have a single huge order in a quarter or even an entire year, you will want to find some affordable forklifts to hire for the warehouse. You should rent the trucks needed to ship this huge order instead of buying a bunch that will just lie there in your parking lot. Be smart about what your business really needs 365 days a year.