TIPS ON OUTSOURCING IN ASIA

outsourcingCultural orientation, which is a big factor to be considered in outsourcing, is often disregarded by many companies when hiring virtual staff. They concentrate more on the cost-cutting aspect of the system. Although this, undoubtedly, is still biggest reason for them to outsource, this benefit can be negated by their wrong choice of staff to hire.

Companies in the western countries may opt to outsource to countries nearer their location hoping to minimize expenses due to the geographical proximity of their source. Although this may be true sometimes, it is also true that many of workers nearby share similar standard of living as the outsourcing company. Therefore, they demand higher fees or at least the same rates as their local counterparts. This defeats the purpose of outsourcing to save on labor cost.

Another factor worth considering when you outsource is the ethnicity of assistants to hire. Often times, cultural differences among workers trigger unnecessary clashes and animosities. These may adversely affect productivity and may eventual cause the collapse of the entire organization due to misunderstanding and lack of coordination among its workers.

“East is east and west is west, and they are worlds apart” may be true but with some effort by both parties, it is not really that difficult to bridge the gap between them.

Asia is still a better place to outsource but consider these cultural differences between East and West when you hire from this part of the world:

3667558-Opinions-Matter1. In expressing opinions, people from western countries are more direct in their reply. People from the east such as the Asians, regard such attitude as too blunt, insensitive, and offensive. When a western manager, for instance, asks for the opinion of an eastern colleague, he may get annoyed for the evasive and long-winded reply he gets. He considers this a waste of time whereas for his eastern worker, this is his way of not disagreeing immediately that may hurt the feelings of the one asking for his opinion.

anger-management2. In anger management, westerners do not effort much to hide their angers. They are fast to raise their voices in annoyance although they quickly calm down after an outburst. Easterners, on the other hand, appear calmer and can hold their temper longer just to maintain peace. Asians especially, are usually non-confrontational in volatile situations. However, they can be more dangerous when they eventually reach their boiling points.

and_discipline_by_doubleleaf3. Just as easterners are generally patient, they are not that “cool” when it comes to discipline. Queuing for anything is almost alien to them. They lack the patience to fall neatly in-line so pandemonium often result that can easily turn into chaos. Westerners look as this attitude with disdain and consider it “uncivilized”.running-clock4. Punctuality is another area where westerners and easterners are often poles apart. “On time” means “on-the-dot” for westerners; Easterners often take this as “more or less that time”. To make matters worse and usually drives westerners to the wall is the nonchalant attitude of easterners to brush off their tardiness as “an act of the gods (Inshallah, as the mid-easterners put it)”.

lazy-executive5. The weather, too, affects people in different ways. Whereas westerners’ moods are easily affected by bad or gloomy weathers such as rainy days, easterners are able to keep their sunny disposition regardless of the prevailing weather condition.

positive-attidtue6. In general, westerners appear more aloof and proud in a crowd whereas their eastern counterparts seem friendlier and smile easily. At work, these attitudes can easily be misconstrued by both parties that can ruin relationships.

boss-employee-image7. People from the west seem more at ease when dealing with office hierarchy since they treat everyone is as their equal. Easterners, however, look up to their bosses as superiors and should be accorded the respect their positions hold in the organization. Westerners look at this as subservience while easterners consider this a show of respect.

Being aware of these cultural differences when outsourcing is a big help in avoiding unnecessary problems, especially work-related ones, which will help you benefit most from the process of hiring virtual assistants.

NEW REASONS TO OUTSOURCE

Outsourcing has now evolved from its primary aim to cut cost in operating a company to a more complex process. Although money remains its biggest thrust for its consideration by most, it has assumed a more sophisticated role in business. Besides its cost-cutting benefits, companies these days outsource for the new reasons:

  • To benefit from globalization:
    Since outsourcing involves the 24/7 utilization of manpower, processes, and technologies around the world, companies take advantage of this set-up to conduct non-stop operations of their business. They are able to deliver their services to a wider market at all times. This translatGLobalization-ITes to bigger productivity and increased revenue.
  • To increase resources:
    With the availability of more skilled talents open to companies from other regions and other parts of the world, outsourcing providers can better support companies in their the developments of new opportunities. These include mergers, acquisitions, and expansions into new regions.
  • To allow innovations:
    Outsourcing, which enables a company to tap to more resources, can provide the opportunities for it to go into new and innovative markets. They can go, for example, into infrastructure, service business processing, and software developments. This strategy can mean more resources and save the company money that could otherwise be spent in interoperability.
  • For better control:
    Outsourcing enables a company to better regulate and maintain important functions such as finance, manufacturing, manpower, etc. Companies can outsource the design, execution, and auditing of these functions. Although this can expose the company’s regulatory control when handled by a third party such as an outsourcing partner, the benefit of a better monitored function of a department results to better performance of these functions that can outweigh the risk. Also, a carefully drawn up contract term in this area can effectively meet the critical control requirements. Read More…

OUTSOURCING PRACTICES YOU SHOULD CONSIDER

Outsourcing is one of the best things that happened to the business world.Unfortunately, not all company that outsource are able to fully benefit from it. Instead, some even suffer waste of time, money, and effort from the process.

Just like in any undertaking, there is a right way and a wrong way of doing it and this is true in outsourcing as well. Studies show that the most common reason for failures in outsourcing is in selecting the wrong provider. The mistakes in outsourcing can result to increased costs to the management of the outsourced processes, loss of control, and may even have a negative impact on employees’ morale.

Most legitimate outsource providers are very competent in their business but the burden often lies on the company that outsources. Even the best one can fail if the company that outsources ignores, or is not aware, of the proper practices to observe in outsourcing. Here are some of them:

  • Establishing clear goal/s for outsourcing:establish-clear-goals
    Sometimes, the outsourcing decision is made for the wrong reasons. Outsourcing is not the “cure-all” for a company’s problems. Your company, or its executives and managers, may have diverse or even conflicting goals. This results to incorrect or misinterpreted performance measures. Analyze the impact outsourcing has on the general direction the company is heading to. Outsourcing just for the sake of outsourcing can be very expensive and may hamper the company’s growth.
  • Defining the tasks to outsource:
    Analyze which tasks to outsource. If your primary goal is to save money, then start with the applications that cost you the most money. Identify if the tasks require high core competency or just routine, although vital, processes. This will avoid you from paying for over or under qualified assistants. It is important to get data such as the number of your in-house employees doing the tasks, quantities manufactured or work done, production cost, and even benchmarks of top performers. Determine also the nature of the tasks, whether they are continual or seasonal. Awareness of these data enables you to make a good analysis of the possibility of the outsourcing initiative.

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HOW WE CAN MANAGE TIME WISELY

Perhaps, because we do not spend money to enjoy time, many of us take it for granted. Worse still, some even waste and squander it. Few seem to realize that time, unlike money, can never be won back once lost. Trying to get it back by working double time later is an exercise in futility.time-management

The mystery of time has haunted humanity through the ages. There have been efforts by science to understand time in order to control it. Until that time comes when time can be harnessed (pun not intended), we just have to live with it and try to make it work for us effectively.

The way to do this is to apportion wisely the 24 hours given to everyone of us. This number of hours may be enough to some, too short or too much to others, depending on how we use it. Ideally, we should be able to squeeze in or spread out most of our activities within the 24 hours.

We can start by defining our priorities. We may have important tasks to do in a given day but they cannot be equally vital although
some may appear to be so. Somehow, some tasks have an iota of importance over the other so we have to be discerning in this aspect.

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VIRTUAL ASSISTANT, A NECESSITY FOR YOUR E-COMMERCE

Running an online store is very much like can running a brick-and-mortar shop.  It is just as fun and exciting, and lucrative, too.

Unfortunately for some, the fun and excitement wear off fast. Just like an actual store, an online version of the business requires the same dedication, time, and hard work. It needs your undivided attention and unless you know how to work smart, you would soon end up exhausted, frustrated, and disillusioned.

Working smart means learning as much as you can about the business you are going into. Make a feasibility study. Be familiar of all the steps and tasks involved. Then, see which of the many tasks can be outsourced from the beginning.  This will prevent you from being overwhelmed before you even start your business.  Remember that starting and making your e-commerce grow is a big undertaking.

Your first step is to study thoroughly the pros and cons of the online business. The biggest benefit of this venture is the unlimited market open to you. Unlike the conventional shop down the street with a market that is limited to the community nearby, an online business has a far reaching and almost Read More…

WHY HIRE VIRTUAL ACCOUNTS?

Nowadays when almost every task can be outsourced, many companies have availed of the services of virtual assistants who can perform the jobs more efficiently at more cost-effective ways. Among the tasks most outsourced are those that involve accounting. accounting_for_non_accountants

Accounting is one of the vital sections in any organization that is both time and resource intensive. It includes invoicing, application of customer payments, managing payables and receivables, preparing and mailing checks, communicating with vendors, balancing of accounts, bank reconciliation, timekeeping, processing of payroll, preparation and distribution of financial reports for management reviews.

In a small or medium size operation, these tasks are usually handled by just one accounting clerk, thus forcing him/her to multitask. This often results to inefficiency and poor performance. This is a case where outsourcing these tasks is most ideal in order for the company to save time, effort, and money and get better results.

One advantage of hiring virtual assistants rather than getting the services of a brick-and-mortar accounting firm is that it enables the company to build a pool of bookkeeping talents in a much cost-effective arrangement.
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How to keep your Virtual Assistant

Having a virtual assistant in the workplace is a luxury unheard of a few years back. Before the introduction of outsourcing, an employer could get stuck with his contracted workers. Replacing them with better qualified ones could take protracted negotiations and might even end up with labor-related law suits.How-the-FMLA-Can-be-a-Headache-for-Employers-672x372

Fortunately, such situations seldom happen these days. With the glut of virtual assistants available in the internet, an employer can easily find qualified hands to tackle most tasks. This can be done minus the headaches of conventional hiring and firing to find the best VA most qualified for the job.

However, the ease of outsourcing tasks to virtual assistants carries with it certain “caveats”, mostly on the part of the employer. Although it is a breeze to hire a replacement for an ill-suited VA, losing a perfect one is just as easy. This is the downside of hiring an un-contracted worker. Having no legal hold on the outsourced worker, there is left with little option for you to keep a good one.

There may still be a slim chance left to you to hold on a good VA, and if done correctly, may keep the VA for a much longer time.

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OTHER REASONS TO OUTSOURCE

1Many companies choose to outsource these days with the end-result-in-mind of saving time and money. Most of the commonly outsourced areas are:

  • Information Technology Functions
  • Network and Telecommunications
  • Human Resources and Insurance Administration
  • Accounting
  • Marketing
  • Security

However, besides saving time and money, companies and business owners nowadays resort to outsourcing due to the following reasons as well:

Attend to shortage of highly specialized personnel: Some companies, especially those belonging to the small and medium sized categories, find it too expensive to employ personnel who can handle highly specialized functions such as engineers, financial directors, legal advisers, and IT specialists. To include these people in their permanent payroll will offset considerably the company’s overhead expenses. Besides the high basic pays these positions require, their fringe benefits are raised accordingly to meet the market standard on these professions like the life pensions and separation pays.

Meet seasonal requir1ements: The needs for additional manpower in some positions are seasonal such as additional sales force during the holiday seasons or the launching of new products. Additional accountants may also be needed during taxation periods. More hands may be needed in the production department to meet occasional higher volume of orders or to catch up with deadlines.

Focus on the company’s core business: This happens especially with emerging businesses when operations details, although important, eat up too much of company’s time. Tasks such as data entry, taking phone orders, invoicing, regular correspondence, and updating of websites can be outsourced thus freeing management’s time and that of in-house employees to attend to the company’s core business.

Take care of health and safety concerns: Other important areas to consider in outsourcing are those of health and safety. Health personnel such a company physician and a paramedic can be outsourced to attend to medical emergencies. There should also be security personnel on round-the-clock assignment to look after the safety and security of the employees and the premises.

The above-mentioned reasons in must also be given important consideration in outsourcing addition the usual reasons of time and cost managements.

The Secret Life of Entrepreneurs: Seven Habits That’ll Keep You Alive

“We are what we repeatedly do, excellence then is not an act, but a habit.” – Aristotle

That means getting and staying rich is based on our habits. The same principle also goes for our health, friendships, mindset and so on and so forth. I always think about compound interest when I consider taking action. I ask myself the question; Will this action help me get what I want long term? Here are some of my daily habits that I do every single day;

  • 8 hours sleep – First 4 they body heals and repairs itself, the last 4 are for resting
  • 0,5 Liters of Water – Your body is dehydrated when you wake up. Drink water to rehydrate and start your bowls again. (This is MUCH more effective than coffee! Coffee has the opposite effect, because it dehydrates you.)
  • Breathing Meditation – Start the day with a clear and calm mind so you can FOCUS
  • 20 Minute Walk – I go for a walk every single day because it´s really important to move. I typically do incantations and visualisation when I go for my walk.
  • Green/Alkaline food for Breakfast and Lunch – What you eat defines how much energy you have and how great you feel.
  • Journal – Write down what positive habits you did, what you are grateful for and what you want in your life.

These habits help me on a daily basis, but over time I know their effect will be MASSIVE as they are compounding for me every single day. Because I now do them on autopilot I don´t even have to think about them.

Have you ever found yourself wanting to go to the gym, save some money, or make that sales call? Well the fact is that from one day to the next it won´t make much of a difference in your life if you do follow through on that one thing, BUT over time your choices become massive!

To best illustrate my point I have decided to show you my personal saving plan that I make in index funds every single month. (I´m actually transferring 1250,- Nok a week to get the best average on the index funds.) The trick here is to set up the money transfer to be the day after you receive your paycheck and never ever, EVER touch this money!

The return after 10 years is ok, but not massive. After 20 years the return is really starting to show, but after 30 years the return is massive compared to the amount I had after 10 years of saving.

  

Now compare this to everything in your life, health, spirituality, friendships, financial education, world travel etc.
It works exactly the same way! Why do you think most successful entrepreneurs make it large in their 40s and 50s…that´s the amount of time to gets excellent at something. However if you want to reap the rewards you need to make that little habit today, or you won´t have the massive positive effect in 10-20 or 30 years!

 

To learn more about positive habits you can listen to my interview with Eban Pagans business partner James Mielnik for FREE by clicking here. I have implemented many of these habits in my life and they work very well!

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Freedom Lifestyle News
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Powerful Habits for Entrepreneurs by Eben Pagan
Eban recommends changing only ONE habit at a time. I think this is excellent advice as changing to many things at once results in overwhelm which is something we don´t want.

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On my Kindle
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The Sligth Edge: Turning Simple Disciplines into Massive Success by Jeff Olson
Life changing read about how little habits compound in your life and make all the difference. Little habits matter massively and this book explains book explains why and was a real eye opener for me when I read it 4 years ago. Hope you get as much out of the book as I do. (I still read it now and again to remember.)
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Stats of the Day
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Internet Habits

 

 

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Goals On Track
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Visit The Great Gatsby Oheka Castle
74/1000 – The Bucket List

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TRUTHS IN OUTSOURCING YOU MAY NOT KNOW

1The strength of any company or organization depends on the quality of its people. Managers may run the show but without enough and supportive manpower a business cannot be successful. Workers play an important role in any business venture. Without doubt, the growing popularity of outsourcing is due to the many benefits it offers to the business world, most especially in the field of human resources. Outsourcing is able to supply the vital need of companies for adequate and qualified manpower that supports a business. It can do this at lesser cost thus considerably contributing to the company’s profitability and growth. However, despite the benefits outsourcing gives, it does not necessarily make it a cure-all to all the maladies of business. It is wise to know the limitations of outsourcing. Otherwise, it may be blamed for “unsolved” issues the process is not designed to do.

Here are some things outsourcing cannot do:

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