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Why Outsource?
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To gain access to expertise.
If the expertise or capability required for a particular task does not exist
within the organization's staff or leadership, then the association may consider
outsourcing as an option. This is especially appropriate with short-term
projects because hiring new staff or training existing staff may not be
cost-effective, efficient or timely.
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To improve the
organization's focus on core activities.
While the Board and staff may be quite capable of managing non-core tasks and
activities, they may be taking time and attention away from activities that are
critical to the mission.
Boards and staff members cannot delegate the task of deciding what is the right
thing to do (strategy) and how to do it (tactics). As long as success is defined
in measurable ways and the leadership sets targets and evaluates progress, then
activities that are not critical to the mission may be delegated.
Some staff members and volunteers feel more comfortable doing an activity
themselves rather than delegating it, internally or externally. Rather than
defining what success for that activity looks like and measuring progress, the
tendency of some is to "just do it." But no one can do everything because time
is limited. All of us need to focus on the core activities.
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To reduce and control
operating costs.
Costs can be reduced because the external provider is more efficient, has a
greater selection of technological and other tools, and can achieve economies of
scale when costs are spread over a number of clients.
By identifying the costs of an activity or program, and paying that amount to an
outside resource, the organization maintains a better control over program
costs. Hidden costs are not buried in other project budgets because there is
more incentive to control and limit costs paid to a third party.
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How to go about outsourcing
Answers to common questions
Things to avoid
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