Outsourcing Done Right Can Save a Lot of American Jobs and Companies - Expert Offers Advice to American Companies

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Saving money is at the top of every business owner's mind. As the market tightens, more and more companies will be trying to figure out how to survive and thrive. With the uniformity of technology around the globe and the ability to communicate electronically, it is becoming easier and makes sense to take advantage of the capabilities of people who are far away. Outsourcing 3.0 is here and used right, can actually create American jobs and save American companies.

Times are tough. Layoffs are happening in every industry and in every sector of the economy. Even the biggest companies aren't immune. It's getting difficult out there. Companies are facing higher prices, lower demand, and fewer customers.

Richard Whelan, Chairman and Co-Founder of WLM Global in Mission Viejo, CA is a strong believer and a vocal advocate of outsourcing done right. It saved his company and he believes that properly utilized it might well be a savior to US companies facing the difficult decisions brought about by the current economic downturn. But he recognizes that outsourcing decisions have to be driven by taking account of people issues as well as profit motives.

Companies are looking to streamline their workforce. Like it or not, outsourcing will play an increasing role in the economy of the future. To some companies it will be a simple bottom line question of survival in a world where every dollar counts: outsource to reduce costs or die. To others, the outsourcing question may not be an issue of pure survival, but it may be a crucial factor that determines their flexibility to expand and thrive these coming years, and whether they carve a role in the global economy of the future.

His own story is a case in point. Richard owns a company called Moveable Cubicle (Raleigh, NC). Just 14 months ago, the company was facing a difficult financial situation and needed to create a more positive cash flow. Every storage container he bought for Moveable Cubicle in the US cost him $1500 and it rents for about $55 a month.

Unless he reduced the costs of his business, the company was not going to make it. He had heard about outsourcing and began doing what he calls, "the version 1.0" of outsourcing.

It worked, for the most part, but he had encountered several negatives: complaints from customers dealing with foreign customer service, high turnover among employees and associated training rates. Improving the support work force and solving the challenges was the only option.

So Richard went to India himself and delved into the personnel issues. He became familiar with the people and was more and more impressed with the quality, education and number of professional employees available. He decided that the answer to saving Movable Cubicle was to open an American company based in India so he could hand select and hire only the top-notch, college educated, professional people to serve as his employees. It paid off. Richard trimmed his payroll by 3 million dollars in just 14 months.

With this success in hand, Richard became the Co-Founder of WLM Global, headquartered in Mission Viejo, CA and now helps other small and mid-sized companies figure out the best way to create more revenue, save money, and to tap into global resources.

"This is not a less for less mentality," Richards says. "In other words you get as good, if not better employees, for less money." "Outsourcing does not need to displace American workers or jobs," Richard says. "In fact, the real key for US companies to realize is that just about any function or role that can be done from a remote location can now be outsourced. The input can be received and managed at home, while keeping the management and supervision here in the home office."

"Outsourcing is far more common and beneficial than people realize. You can't assume it's a bad word," Richard says. "America itself has used global resources all the way back to the Civil War, so outsourcing is more evolutionary, rather than revolutionary."

Medical outsourcing is becoming extremely common. MRI, CT scan and X-ray images taken in local hospitals are analyzed by radiologists abroad, who then report the results and findings by email.

Bookkeeping and accounting are also good examples where work is transmitted for processing virtually and results are delivered from all the corners of the globe.

"In fact, the bottom line is that outsourcing often times gives companies a better deal than when some work is performed by on-site employees."

"Saving money is at the top of everybody's mind. As the market tightens, more and more companies will be trying to figure out how to survive and thrive. With the uniformity of technology around the globe and the ability to communicate electronically, it is becoming easier and makes sense to take advantage of the capabilities of people who are far away."

"Like it or not, saying no to all foreign outsourcing is not the right answer. We have a global economy and when you outsource you can actually hire superbly educated and qualified people to help you make more money so your top people can concentrate on their main area of focus."

Business owners need to systematically analyze and study their systems. They are going broke and everyone knows it from automakers, to banks, to main street businesses in every American city. If they don't do something to make their company more profitable, they will no longer have a company to worry about. It's not about firing people. It's about saving American businesses, by using an American company, run by Americans that has direct oversight over all the employees.

Richard offers his lessons learned for US companies looking to evaluate how to outsource effectively:

Identify support system roles that can be performed virtually from anywhere

These might include: Accounts receivable callers - Customer support - Accounting - Financial analysis and reporting - Accounts payable management - Payroll and compliance - Recruiting - Compensation and benefits administration - Training, and performance reporting - Programmers - People to manage databases - Call Centers - Customer Service - Computer and network support - Help keeping email and websites and servers and who knows what else running.

Maintain strong policies, transparency and frequent oversight

The goal is to achieve success. The way to do that is by maintaining appropriate checks and balances and by using simple decision making processes, performance tracking and common sense.

Just realize that you may have to deal with quality measurement, timing, maintenance, or governmental regulatory problems faced by the suppliers in the developing countries. You may have to visit the countries and your suppliers' facilities with your own quality inspectors, and check the quality of goods shipped to ensure that quality is maintained.

You can decide how to manage your workforce and the flow of goods and materials through your organization.

Managers and supervisors can be kept local. You can free up resources so that the core work can be conducted wherever you can get it done cost effectively, in a way that seamlessly integrates people no matter where they are, invisibly to your client or customers.

Richard says, "It takes a long time to build a reputation for quality. It doesn't take much to destroy a good name. If you do things carefully and watch what happens, you'll reap the benefits and avoid making matters worse."

Richard's company, WLM Global is located in Mission Viejo, CA. They are focused on helping small to mid-sized businesses have access to a global workforce.

For more information visit http://www.wlmglobal.com or to schedule an interview with Richard, please call Randall Blaum at 310-947-1335.

Richard Whelan - Chairman and Co-Founder WLM Global
Prior to founding WLM Global, Mr. Whelan was a founder, the President and CEO of Moveable Cubicle, and has been a member of its Board of Directors since 2002. Mr. Whelan raised $30 million dollars in capital for Moveable Cubicle.

He has held senior positions with several investment management firms, including Legacy Fund, LLC, and Monolith Fund, L.P. and was also founder and director for Franklin Lord, an investment brokerage firm. In 2006 he became a co-founder of People Jar, and has assisted in raising approximately $4 million in capital for that company.

He has been profiled Entrepreneur Magazine and his offerings were featured in Business Week, The Wall Street Journal, and numerous other media. He is frequently called on as an expert in raising capital, building companies, and creating success and graduated from Arizona State University in 1987 with a BS in Accounting.


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