Outsource Yourself

March 19, 2008

When business took to outsourcing I realized there was an opportunity to improve my take.
Outsourcing deals work best when both sides focus on the value improvement (rather than the supplier’s cost) during negotiation. This is, in fact, Rule #1 of negotiation because it forces both parties to think hard about operational issues like service [...]

Round

When business took to outsourcing I realized there was an opportunity to improve my take.

Outsourcing deals work best when both sides focus on the value improvement (rather than the supplier’s cost) during negotiation. This is, in fact, Rule #1 of negotiation because it forces both parties to think hard about operational issues like service levels that will define the relationship after the contract is signed.

It never works this way between employers and employees–sales and executives being the obvious exceptions. We call it negotiation, but what really happens during the hiring process is only “negotiation” in the weakest sense.

However, take exactly the same skill set and outsource it and the interaction immediately looks more like a negotiation.

The realization I had was twofold:

  1. As a employee, no company is ever going to properly invest in my technical skills.
  2. As a provider of technical services, I can negotiate more effectively based on value.

Simply put, a company is never going to be in the business of growing technical, design, etc. skills.

On the other hand, you can be / should be in the business of growing those skills.

Employees are replaceable cogs. You are a valued partner/vendor.

- Bandit

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