Why Outsource?

 

Business today is evolving fast and placing extreme demands on nonprofits and associations.  Many ask, “Should we outsource our accounting, information technology or marketing functions?” The real question is more challenging: “Why do we still have accounting, IT, or marketing employees?” How do organizations use outsourced services to facilitate new revenue-driving initiatives, improve productivity, and focus resources on their core competencies to achieve success? Why OutsourceAssociations increasingly turn to outside experts for help keeping operations aligned with goals. Are you expert in every vertical function within your organization?  If you are an accountant, are you an expert marketer?  If you are a technology guru, are you also expert in accounting and tax regulations?  To hire and retain experts in every system and function required to run your business today would be overly expensive for the typical trade association, professional society or nonprofit.

Why Do We Still Have All These Employees?

Outsourcing is the process of delegating an organization’s business process to third parties or external agencies, leveraging benefits ranging from more productive labor to improved quality or product and service innovation. When outsourcing crosses international boundaries and is managed by companies located in other countries, it is known as off-shoring.  In-shoring is the opposite process and involves moving a business operation from overseas to the local country.

Top 10 Reasons to Outsource

Outsourcing, off-shoring or in-shoring decisions have direct impacts on an organization’s top and bottom line and are now key components of defining how successful enterprises are run. Associations choose to outsource to:

  1. Lower operational and labor costs. Properly executed, outsourcing has a positive impact on revenue recognition and delivers significant savings.
  2. Focus on core mission processes while delegating time-consuming or specialized processes to external agencies.
  3. Leverage a global knowledge base to gain access to world class capabilities.
  4. Free internal resources and reallocate them for more effective uses.
  5. Augment internal human assets to fully staff for special projects or to cover extended absences.
  6. Smooth cash flow by taking advantage of true fixed rate contracts.
  7. Gain efficiency by delegating difficult functions to those for whom they are core competencies.
  8. Mitigate risk by offloading liabilities.
  9. Realize benefits from re-engineering.
  10. Expand and gain access to new markets by moving production or service delivery closer to end users.

These are some of the top reasons outsourcing has become a core component of successful business plan and strategy.  

Do you know what your employees are up to?

The strategic role of an IT, marketing or accounting department is to make an organization more productive. It is important to develop means to measure the impacts on productivity in order to gauge effectiveness, to find out what these departments actually accomplish on an organizational level.  As C-level managers learn more about their organization’s processes, they can cease measuring performance at the task level.

How do you know what you do not know?

Knowledge gaps equal liability. When analysis reveals liabilities stemming from these knowledge gaps, the conversation quickly shifts to using outsourced services. Once leaders realize the performance, security, and regulatory risks associated with inadequately equipped staff, they seriously consider migrating to outsourced services. Many heads are better than one. Reviewing the total requirements of a typical organization, the cost of expert staff to fully support the strategic goals of an organization are astronomical. When you outsource services, you mitigate the risk created by gaps in internal expertise. More experts are available on an as-needed basis to address a broader range of needs. These resources would otherwise be cost prohibitive to associations that cannot pay a full-time salary for a part-time need.

Stop worrying. Start outsourcing services.

Instead of trying to figure out just how your staff will add a skill set, an outsourced services partner marshals necessary resources to immediately fulfil the task at hand. Outcomes are assured without disruption to daily operations and without the budget impact of hiring a new full-time employee with salary and benefits. Once management becomes confident that outsourced services can promote productivity, the small organization or association finds freedom from the limitations of internal IT, marketing or accounting departments.

Seeking real impact to the business.

Effective use of resources lowers the cost of all labor over time by improving people’s productivity. While outsourcing frequently lowers monthly costs immediately, OnePoint Services believes the real benefit is when clients adopt a culture of continuous improvement. By ensuring that functions remain constantly aligned with desired business outcomes, organizations become more efficient. OnePoint Services, your single point of contact for administrative support services in the cloud.         

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Rebecca Rounds MBA PMP:  Principal OnePoint Services