Managing Business Through Human Psychology - “A Handbook for Entrepreneur” by Ashish Bhagoria - HTML preview

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Outsourcing a Job to Third Party

For choosing the agency or person who would execute our work we usually follow three paths. First is to float tenders, second is when we initiate the contact and third when someone approaches us. It is a very common behavior that when we are buying something or getting some work done we want to save money. For this we do heavy negotiations to get as much discount as possible. However, sometimes in the process of saving that extra margin of money we make the mistake of choosing someone who is either not professional or compromises on quality.

Most of us have made this mistake one time or the other and the lesson to be learnt from this is to choose someone who would give us the quality that we need and will be professional in their dealings with us. Sometimes, it so happens that we meet someone through an acquaintance or already know the person and give the work to this person on personal relations. In this kind of scenario where the work has been tendered on relations rather than competency we face the problem. Either the quality of work would not be at par or we will suffer during after sales service. It is alright to give opportunity to known people or first timers but it should be done on the basis of their competency.

Hence, it is always a good idea to make associations and tender work based on the past record, professionalism and competency of the organization. As far as possible we should try to avoid people who are working to earn money through their skills rather than making it their profession with long term goals. These are usually individuals or a group of people who have started their own company. These people mostly do not have any decent infrastructure and have no established brand. If these person or persons leave, our whole work gets stuck and we will have nowhere to go. When stuck in such situation we end up paying more money to get the work finished than we would probably have saved in the deal. In comparison if a person leaves an established organization there will be someone else to replace them and our work will not suffer.

So, rather than trying to save that extra penny we should look for someone who can deliver us the desired quality while ensuring us the after sales service.