I have one group of clients who are complaining that … “subbies are getting slacker and slacker these days, you have to watch them every step of the way.”

The subbies (subcontractors) are saying … “I’m getting ripped off by the businesses I’m working for, there’s no margin and we are doing dough hand over fist.”

What I’m hearing from is both sides of a relationship that isn’t working.

What went wrong?

Both these business groups have set themselves up to fail and they succeeded.

Their thinking was flawed when they asked them selves the very first question

How can I get this done the cheapest possible way?

The result of the answer of this question is frustration, angst, disappointment, stress and more.

The question with all due respect achieves the outcome that was actually sought.

That outcome is almost never the most reliable, the timeliest, the greatest value or the best choice to overcome the issue that was the cause for the initial question.

You get what you pay for

What is happening is that the cheap option cost more in downtime, management distraction, lower quality, time wasted and more.

To state the bleeding obvious, your time and that of your business has a value – a $ value. When you spend additional time on the outsourced activity over and above what is necessary the cost savings vapourise.

What cost saving question do you ask yourself when you sub-contract?

• How can I get this completed at the lowest price?
• Can this be completed at a cost lower than in house ?

When you ask the cost saving question you are taking a sub contracting approach. You continually have to go through the tender or selection process each and every time you need the job completed. You are placing yourself under pressure to meet the focus of lowest price.

The irony is that out-sourcing by subcontracting ensures you achieve the lowest cost not the best outcome.

Outsourcing is the answer.

Outsourcing is about developing long term relationships with people or businesses that have skills you don’t, whose skills are superior to yours or who are more suited to completing the task other than your busienss.

Many businesses owners don’t get the concept that their core skills and competancies are better applied in other areas than the purely technical “doing it” stuff. Yes you can do all your owndesk top publishing, logo designs etc with MS Publisher, you can build your own web site using MS Front Page or MS Word but is this the best investment of time or the required outcome that your business needs?

So what question do you need to ask as a result?

How can I continually access a talented person or business that can assist me with ............... skills on a long term basis, so I can get on and do what I need to do for the benefit of my business and my clients?

This approach may actually cost more in $$ terms but brings greater value to the business.

One of my clients is now using an outsourcing strategy for manufacturing of his core product by offering bonuses of 25%+, above their already increased rates, for achieving specific and agreed quality and time parameters.

The real benefit is a free mind.

Clearing the clutter in your mind and that of your staff has untold value. Some businesses have people employed just to manage sub-contractors and sub-contracts. What a waste when there is an alternative.

You may not be employing anyone else but yourself to carry out this task, but at what cost in wasted opportunities and a continually cluttered mind?

If you are taking a subcontracting approach try the alternative, even if it's on one specific area and see the difference an outsourcing approach can make.