The Secret to Your Organization's Success:  Do  Your Need to Outsource? 
Do You Need to Outsource? 

The Secret to Your Organization`s Success: Do You Need to Outsource?  Reprinted with the kind permission of Charity Times www.charitytimes.com.

 

The choice as to which outsourcing partner to select cannot be taken lightly, as many of the services usually involved are central to an organization’s success.

 

Like many commercial organizations, charities are increasingly looking to outsource third party services in a bid to reduce costs, attract new sponsors and increase both the amount and quality of benefits available to their members. There is a near endless queue of agencies claiming to offer a perfect union, but despite this apparent multitude of choice, many charities are still finding it difficult to find a suitable partner. It can be hard to differentiate between the merits of service providers and the final decision unfortunately too often boils down to a financial one. The choice as to which outsourcing partner to select, however, cannot be taken lightly, as many of the services usually involved are central to an organization’s success. The aim of the guide below is to clearly layout the factors that need to be taken into account during the selection process, and hopefully make the decision that little bit simpler.

 

A five-point guide for charities considering outsourcing:

 

1.                Clarify your objectives – before even starting your search, have a good think about what your organization is trying to achieve through outsourcing. Is your organization looking for cost and efficiency benefits? Do you need an outsourcer to give your organization a competitive edge in your drive for new members, or is an increase in revenues from existing members essential? Thinking about the strengths and weaknesses of your organization and consulting with your staff and members may help prioritize the services you decide to outsource. Set out what you want outsourcing to achieve in a tender document to make sure your potential partner understands your objectives.

 

2.                Do your homework – make sure you understand the companies that you propose to partner with. Your homework should involve a thorough check on the background of the outsourcer you are considering. You may want to pay particular attention to industry accreditations and relevant experience as good indicators of quality. Don’t be afraid to ask which organizations your potential partner has worked for and the precise details of this work.

 

3.                Fit with your organization – your outsourcing partner will be an essential first point of contact for existing members and potential supporters alike, so it is important that your partner can transform itself to embody your brand values and literally become an extension of your organization. Equally important is a fit between your outsourcing partner and your organization in terms of day-to-day working practices. You should like the people you plan to do business with and make sure their values, vision and ambitions match your own.

 

4.                Meeting your needs – does your potential outsourcing partner have the capacity to deal with your organization’s requirements as they develop? Check your potential partner has the ability to handle all the communications channels that your members and supporters want to use – from fax to text message. Does your partner also have the flexibility to cope with peaks in demand caused by emergency appeals or successful marketing campaigns? It is sensible to check whether your potential partner has the necessary staff and systems in place. Selecting a service provider, which carries out a business analysis before being taken on, should prevent any misunderstandings later in the day and will also give you an indication as to whether there is a clear understanding of your needs.

 

5.                Get it in writing – secure legal agreements covering all the services you decide to outsource. These agreements should help protect your organization against unplanned events and secure your physical and intellectual assets. Any agreements should also define how the relationship with your outsourcing partner is to be managed at an operational level. Setting service level agreements at the start of the relationship should clarify your requirements and help ensure you do not pay for a quality of service you do not receive.

 

 Jan Rogers is business manager for Associa.

 

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