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As appeared in Association Trends

An Association Guide to Trends in Outsourcing and Outsource Management
By Annette E. Petrick, CAE, speaker, consultant, thought leader, Woodstock VA

Outsourcing is results-driven. That's probably the single biggest factor to explain its popularity with nonprofits in the last 10 years. A strategic partnership allows the assn to turn to an outsourcer to fulfill an assigned task, with the trust that deadlines will be met, results will be produced, reports will be filed and the outsourcer will stand by, ready for the next assignment.

Strategic outsourcing by trade assns and professional societies is now mature enough to have proven results. Benefits are well documented over the years, by Association TRENDS special sections, industry magazine articles and reports. Log on to a listserver for the assn management community and ask about the experience of executives. Youšll hear how many achieved goals with the help of an outsourcing practitioner.

Initially, outsourcing seemed a silver bullet to slash costs, and for a time, that was seen as its only advantage.

Today, executives realize that outsourcers specializing in assn projects might be better informed about how to achieve results in the desired area. They might have a better grasp of future spectrums of a given project, based on their research and experience. They might be able to recommend facets of the project that the assn could not handle.

They have probably made a large investment in software, work environment and recruiting specialized personnel. Most do extensive training in attitude and customer service.

Using virtual personnel allows the assn staff to expand and contract with the work load, without the expense of finding, housing, equipping, training and nurturing new full-time, on-site staff.

Outsource management

The scope of outsourceable projects is endless. Outsourcers have accepted incoming calls from consumers, leaving staff to be more responsive to members. They've made calls to members who had not yet paid their dues, removing a burdensome task from staff. They've coordinated fund-raising efforts that involved multiple chapters; collected information from state and local societies for a best practices book; established year-long on-line and on-site leadership training; and recruited upward-mobile members. Outsourcers can introduce and promote new products and services.

Rather than asking whether to outsource, assns are now more frequently asking about management of outsourcers. Some organizations do so much outsourcing that a specific staffer has been assigned to keep things going. The staffer prepares audit results and contracts, compares benchmarks and arranges transitions to other types of production once an outsourcing method has run its course.

The most important step to outsourcing success is to decide early on what results you wish to achieve. Define service level requirements and have a written agreement that covers these standards. Create benchmarks and determine what kinds of reports you want to receive and with what frequency. Put everything in writing so there is no discrepancy between what you meant and what was heard.

Determine specific deliverables and the dates when they are to be provided. Decide when the job is complete or when outsourcing will be transitioned to some other means.

Outsource resources

Several entrepreneurs have now produced tools for managing outsourced projects. The Outsourcing Tool Kit (www.outsourcing-tool kit.com), for instance, contains a service level requirements template and agreement. It has a benchmarking audit kit, an outsourcing contract, a transition plan guide and an introduction to outsourcing management.

A Gartner Weblog claims to separate Myth from the Real Deal and offers an outsourcing handbook. Visit the Gartner Weblog.

If you really want to go in-depth about the practice of outsourcing, see the Outsourcing Center at www.outsourcing-journal.com.

A professional outsourcing practitioner can quickly add value, save time and become a strategic asset to any assn. When you are ready to outsource, do your homework up front and proceed with enthusiasm.