You’ve heard that outsourcing is a cheap way of getting a job done. But, you did not find out how this works and the best way to approach it. So, you rush off to hire cheap labor and the end result did not match your expectation. Now, before you repeat the same mistake, you should learn how to negotiate an outsourcing fee rightly.
Yes, it is not a hidden fact that outsourcing is a tool that provides cost-effectiveness to a business. The cost-effectiveness largely comes from hiring workers who work from their own space and destination instead of the ones who sit back in the office day in and day out.
You’ve heard that what you pay for is what you get. This largely applies to outsourcing. In essence, what you pay to an outsourcing provider will largely determine what you will eventually get as the final outcome. You may say; if this is the case, then outsourcing is not cheap after all. Well, you got it all wrong.
So, What is the Best Way to Negotiate an Outsourcing Service Fee?
Keep an Eye on Quality
You should know that there are many independent contractors claiming to be experts when they are not. And of course, the real experts are out there, but you need to adopt due diligence in finding and hiring them; this includes what you offer them as service fee or what they are willing to accept as service fee.
Paying reasonable fee to ensure the desired quality for an outsourced task does not mean you are forfeiting the main essence of outsourcing solution (cost cutting). No matter how you look at it, you are still better off with outsourcing than full-time staffing in terms of cost difference.
All I’m saying is that you should keep an eye on quality when negotiating outsourcing fee. You should offer a fee that would promote quality outcome. Even if the contractor is an expert in the task you wish to outsource, they can decide to lower their standard to suit what you are willing to pay as a service fee.
If it sounds too good to be True, then Beware
In essence, the offer sounds so juicy and you feel you are about to hit a jackpot. You should beware and be sure you will not end up with a peanut result. No true expert will settle for a peanut to offer their expertise. So, when you are being offered what seems like a peanut price in comparison with the requirement of the task, you should think twice.
You should be diligent to ensure undeniable proof of expertise when hiring an outsourcing company or provider. Offer or accept reasonable pricing that will work well for both parties.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams
Doug Dvorak says: 
What You Should Bear in Mind when Negotiating an Outsourcing Fee
You’ve heard that outsourcing is a cheap way of getting a job done. But, you did not find out how this works and the best way to approach it. So, you rush off to hire cheap labor and the end result did not match your expectation. Now, before you repeat the same mistake, you should learn how to negotiate an outsourcing fee rightly.
Yes, it is not a hidden fact that outsourcing is a tool that provides cost-effectiveness to a business. The cost-effectiveness largely comes from hiring workers who work from their own space and destination instead of the ones who sit back in the office day in and day out.
You’ve heard that what you pay for is what you get. This largely applies to outsourcing. In essence, what you pay to an outsourcing provider will largely determine what you will eventually get as the final outcome. You may say; if this is the case, then outsourcing is not cheap after all. Well, you got it all wrong.
So, What is the Best Way to Negotiate an Outsourcing Service Fee?
Keep an Eye on Quality
You should know that there are many independent contractors claiming to be experts when they are not. And of course, the real experts are out there, but you need to adopt due diligence in finding and hiring them; this includes what you offer them as service fee or what they are willing to accept as service fee.
Paying reasonable fee to ensure the desired quality for an outsourced task does not mean you are forfeiting the main essence of outsourcing solution (cost cutting). No matter how you look at it, you are still better off with outsourcing than full-time staffing in terms of cost difference.
All I’m saying is that you should keep an eye on quality when negotiating outsourcing fee. You should offer a fee that would promote quality outcome. Even if the contractor is an expert in the task you wish to outsource, they can decide to lower their standard to suit what you are willing to pay as a service fee.
If it sounds too good to be True, then Beware
In essence, the offer sounds so juicy and you feel you are about to hit a jackpot. You should beware and be sure you will not end up with a peanut result. No true expert will settle for a peanut to offer their expertise. So, when you are being offered what seems like a peanut price in comparison with the requirement of the task, you should think twice.
You should be diligent to ensure undeniable proof of expertise when hiring an outsourcing company or provider. Offer or accept reasonable pricing that will work well for both parties.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams
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