When considering outsourcing a number of factors must be considered early on. One of the most significant decisions to be made soon after you decide to outsource is whether the job will be an hourly job or a fix rate project. There are pros and cons to both options. After careful consideration you will be able to reach the best decision for your specific situation.
Hourly outsourced services or projects are typically a bit easier to manage. I say this because with an hourly job, if you come to the realization that the fit between you and the outsource associate is not quite right, or they, can move on. In contrast, if you enter in to a fixed rate project, typically the outsource associate will require at least a portion of the agreed upon fee up front. If you determine that the fit between you and them is off, you may have no manner in which to recoup the upfront fee. Additionally, the associate may simply vanish and never produce the final deliverable.
One of the ‘perks’ of a fixed rate project is that you can set a time frame for the completion of the project after setting milestones and not be concerned with the day to day movement of the project. You can focus on the quality of the deliverables as opposed to a day to day budget of hours/resources.
Another plus of fixed rate projects is that you are able to say to your outsourcing associate, “This is the result I want for X amount and I need it completed by x-x-xx date.” This also allows the project to be completed during the associate’s work hours/time zone.
In reaching your final decision, it is necessary to consider all of the factors of your task or project. Look at how much direct oversight is necessary (if a lot is required an hourly offer may be most appropriate). Determine if you are looking for a service to be delivered (customer service, calendar management, etc.) then an hourly may be great for you. If you are looking to have a web site designed, a fixed rate may be more appropriate.
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