The document discusses how small businesses can benefit from outsourcing tasks globally to reduce costs. It provides examples of common outsourced tasks such as marketing, customer service, and web development. Additionally, it discusses challenges with outsourcing such as communication issues and ensuring quality control from remote teams. The presentation emphasizes teaching business students how to identify capable talent, define project specifics, and manage virtual outsourced teams.

1. Virginia Intermont College Assistant Professor -Business : David Hite Teaching College Business Students How to Manage Global Outsourcing

7. Introducing….the U.S. Small Business

11. So where can small businesses in rural and (non-rural) area find the talent and expertise they need?

12. Where can I find good, cheap, efficient talent , NOW ….? Without paying over $15,000-30,000 start up costs from U.S. Service Providers Website $5000 Social Media $1000 E-Commerce $8000 E-Payments $2000 CRM $3000 Advertising $6000 Graphic Artist $1200 SEO $1000 Data Entry $15-20/hr Market Research $60/hr Newsletters $300 a piece

13. Outsourcing ? If a large company can do it, why can’t a small business??

14. The BIG Picture

16. List of services imported (outsourced) by United States of America Source: International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. Service label Imported Value in 2005 Imported Value in 2006 Imported Value in 2007 Imported Value in 2008 Total services 313835712 349115328 375266624 405402080 Travel 73395616 76987032 81531400 85402768 Transportation 88177264 92865072 95553968 104778224 Other business services 50100496 46177520 50057352 58424908 Insurance services 28739712 37041384 41672376 42954672 Government services, n.i.e. 33454878 34463864 36447792 40340992 Royalties and license fees 24637526 23530700 24660356 26624740 Computer and Information services $2,351,294 $13,440,713 $14,808,688 $16,145,136 Financial services $6,426,704 $14,740,276 $19,753,508 $19,149,020 Communications services 5158027 6952821 7608036 7789556 Personal, cultural and recreational services 959572 1521035 1552230 1879045 Construction services 434890 1395539 1621041 1913328 Personal remittances 40634500 43619600 46995200 48187000

18. Introducing: The Project

20. Identifying outsourcing talent and capabilities.

21. Where?

24. Who? Example Talent Pool Atta - Web Designer, Joomla, Wordpress, Freelance Website / Graphic Designer, Pakistan $4.44 / hr JoJo - Technical Writer, Virtual Assistant Philippines - $1.11 / hr Mark – Graphic and UI Designer, Philippines - $5.56 Merlin - Web 2.0 Developer(PHP/MySQL/CMS (Joomla ,Wordpress, Drupal )/Ecommerce) - Extolution, India $7.00

26. Starting – Understanding the talent team: The Basics Culture - The young people have been trained in the cultural background of the countries they serve. In order to drown their own culture and remake them in the image of their customers' requirements. Communication – This is challenging at times, but India and Pakistani students learn very good English and keyboarding skills. PM – Starting a project with a project management approach will guarantee better outcomes. Expectations – When starting projects, make sure specific expectations are as clear and understandable as possible.

31. Teaching Outsourcing

33. What the student needs to know and do

35. One Example…

36. Negotiating is essential We learned that it is best to start with small tasks where you negotiate a small rate. In many cases, outsourced talent wants to become a “long-term” partner. For example, if their hourly rate is: $11 per hour. Offer $5 initially if they want the job. Don’t be afraid to offer small and explain that you have many other bids.

37. • Global vendor management, remote teams, multi-sourcing • Defining job scope, deliverables, service levels and standards • Capturing and retaining project knowledge and lessons learned • How partnering can dramatically increase effectiveness • What is required to communicate effectively with vendors • Managing problems that arise, collaboration and conflict • Assessing project results and managing vendor performance • Managing changes to work, project direction, or expected deliverables • Closing out projects, terminating a vendor, transitioning to new vendor Additional Outsourcing Competencies

38. The Technology The Cloud

39. Tools & Aps: Ipad 1 – with 3G Service Favorite Aps for Managing Outsourcing Teams and Projects: Dropbox A-note Evernote Instant Messenger Plus Google Docs Google Talk and Google Voice Zoho Invoice Email Odesk Ap

41. Rural Outsourcing & Community Involvement Assisting specific small businesses with exporting opportunities Continue research on future business process outsourced activities Partnerships w/ community and other academic partners Next Steps….

42. Discussion David Hite [email_address]

44. Nasbite Presentation Resources: SBA.gov, SBDC, International Trade Center http://www.msnbc.msn.com/id/8346912/ns/business-answer_desk/ http://www.smallbizsurvival.com/2010/07/rural-sourcing-can-replace-outsourcing.html https://offshoring.fuqua.duke.edu/community/index.jsp http://www.smallbusinesscomputing.com/biztools/article.php/3740906/Outsourcing-Save-Money-Save-the-World.htm http://www.businessinsider.com/more-businesses-are-outsourcingto-rural-and-small-town-usa-2011-3 http://www.retrospector.com/2006/06/05/offshore-outsourcing-alternative-college-interns/ http://www.globalservicesmedia.com/BPO/HR-Outsourcing/Consulting-to-Outsourcing-Gives-Small-Businesses-Practical-HR-Options/23/11/9388/GS100302608115