Page 147: Issues in Managing Extreme Outsourcing

Page 147

GO IT ALONE!

Outsourcing encompasses the use of any service operated outside your business that performs a task for you, saves you time, or limits the complexity of what you must do.

It’s valuable to recognize the distinction between using an outsourced ASP and using of software or other tools that save you time. You may continue to perform a task, but by using specific tools, you may develop a way of performing that task at far greater speed and efficiency over time. One example might be a software program that helps you to post merchandise on eBay. You have not outsourced the service, but you have certainly increased your own efficiency. In the same way that extreme outsourcing works, the extreme use of productivity-enhancing, easy-to-use software tools can also save you valuable time. Of course, it’s easy to waste a fortune on software tools that are “guaranteed to increase your productivity,” and you do need to guard against this. The lack of the up-front investment associated with software programs or hardware is also one reason to prefer the ASP model. However, this is one place where it’s best not to be penny-wise and pound-foolish. Although cash may be tight, if some specific software, hardware, or service is going to save you several hours a week—and thereby increase your out-put—you need to realistically ask yourself what that extra focused time is worth for the business. In most cases, you will probably find that the investment is worth it. You’ll find that new tools often spark valuable ideas for new opportunities or ways of doing things that you had not previously considered.

THE BRAINS VERSUS THE ARMS AND LEGS

Michael Loeb, the CEO of the Synapse Group, shares the view that “successful businesses have the discipline to focus on one skill . . . and practice that obsessively.” To structure a company for extreme outsourcing, he uses the analogy

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