||A warning. Only after
carefully weighing and estimating the value of the above
listed intangible benefits to outsourcing should you begin
to examine the hard/tangible costs.
Consider also the fact that you are
going to rest easier by reducing your stress levels. Why?
Because your problems have now become theirs. Also consider
the value of having access to a professional service as your
business and program needs change. And, they will change. Be
sure to evaluate all the issues. The 'soft' ones may be more
difficult to quantify, but they are as just as or even more
important. What maybe at
first seems to be a high hourly rate quoted by the service
provider, could be a bargain and a means to enhance your
company's shareholder value
NEXT, ensure you have tallied
the total hard costs of running your program in-house before
comparing the two sets of costs against the service bureau's
program quote. Internal Operations often incur hidden costs,
or costs distributed across multiple departments - which can
require sophisticated cost-allocation systems to correctly
estimate the program's costs/expenses.
Include also in your calculations such
costing as : your facilities floor space, furniture, office
equipment etc, the repetitive advertising, hiring, training
and staff turnover costs, program mistakes and lost time,
payroll expenses such as taxes and insurance, benefits,
telecommunication and computer maintenance and upgrading
costs, management etc. - these alone can add 25% to
75% extra costs
over the dollar-per-hour rate you pay.