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Outsourcing Services
Association
members and non-profit constituents are best served when their
needs are met through creative solutions that deliver the best
value for the resources expended....and that is where AXI
excels.
Why outsource?
Outsourcing Tips
How AXI can help
you
Why Outsource?
Associations, non-profits and private sector
companies have the same top three motivations for outsourcing,
according to separate surveys undertaken by Association
Management magazine and The
Outsourcing Institute.
These are:
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To gain access to expertise and capabilities
If the expertise or capability required for
a particular task does not exist within the staff or Board,
then associations and non-profits should consider
outsourcing as an option. This is especially applicable with
short-term needs when hiring new staff and/or training
existing staff is neither cost-effective nor timely.
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To improve the organization's focus on core
activities
While the Board and/or staff may be quite
capable of managing non-core tasks and activities, are
they taking time and attention away from the
mission-critical activities?
Many staff and volunteers feel more
comfortable doing an activity themselves, than delegating
it internally or externally. Rather than defining what
success for that activity will look like and the method of
measuring and evaluating progress, the tendency is to just
do it. However, they can't do everything as their
time is limited. They need to focus primarily on the
core activities.
Boards and staff cannot delegate the task
of deciding what is the right thing to do
(strategically and tactically). However, as long as
they define success and measurable targets, and evaluate
progress, they can delegate implementation -- doing it
right.
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To reduce and control operating costs
In many instances, 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 because some costs are
spread over a number of clients.
As well, by identifying the costs of an
activity or program, and paying that amount to a supplier,
the organization maintains a better handle on what the
program is costing. Hidden costs are not buried in other
areas, and there is more incentive to control and limit
costs paid to a third party, than to control internal
budgets.
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Outsourcing Tips
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Involve the affected staff in the process before the
outsourcing provider is selected and decisions made about
the work to be done.
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Clearly define the control and decisions that you will
retain, and what will be within the authority of the
provider.
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Consider a phased-in or trial relationship, and ensure
that there is a process to end the relationship (an
"out" clause).
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Be clear on expectations, timelines and results. Put
them in writing.
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Define limitations to avoid problems up-front.
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Decide the dollar details up front so that there are
no surprises.
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Include strong anti-compete and confidentiality
clauses in the contract.
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Make sure that you have privacy provisions in the
contract if the supplier will be handling members' personal
information.
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Decide up-front who will own materials or content
created (for example, the supplier may hold the copyright
for written material, etc. unless it is assigned to the
association).
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Make the relationship and contract a win-win-win
arrangement. If the association and the supplier win,
then the members will win as well.
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Monitor performance regularly, and conduct research
with the members/customers.
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Follow up on complaints quickly, and watch for trends.
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Be prepared to revise the arrangement/contract if the
arrangement can be improved.
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If you need help in understanding and evaluating
technological and other technical aspects of what a supplier
is proposing or will do, then get it! Know your limitations!
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Look for better ways to do the activity, and don't
simply seek out someone that can do it exactly how you have
been doing it.
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Try outsourcing one activity, task or function.
If it works well, try another one. If it does not work well,
determine what went wrong, and try again.
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Start with something small before jumping into a
significant outsourcing relationship.
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Look for a supplier that provides a transfer of
knowledge to the association as part of the relationship.
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Look for a customer service orientation from potential
suppliers.
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Seek out positive outsourcing experiences, and learn
from them.
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How AXI Can
Help You
AXI can undertake outsourcing feasibility
studies, as well as advise associations and non-profits on
outsourcing projects and in supplier identification and
negotiations. We are also an ideal outsourcing
supplier, especially for unique services that are not readily
available from other sources. AXI can meet unique needs by
drawing on our internal strengths
in association operations, member services, technology, and
customer service. To discuss specifics of how AXI
can assist you, please contact us.
Once we have an understanding of your needs, we can prepare a
detailed and attractive proposal that will achieve the desired
results.
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