Outsourcing – The Newest Avenue in Skill Utilization
02/14/2003

Outsourcing – The Newest Avenue in Skill Utilization

Why do we outsource? To save money! Well, it’s not just about money anymore—it really isn’t. In fact, outsourcing for money’s sake is not a safe way to ensure professionally completed projects. There are many factors in successful outsourcing. Exploring some of them here will give you a different perspective if not a whole new portrait of outsourcing.

Some questions to determine if outsourcing can help:

  • Are you working overtime all year rather than just close to your meetings?

  • Is your entire staff working overtime too often? Is staff turnover getting to be an issue that is talked about when your department is mentioned?

  • Is there a totally new project placed upon your desk without the new staff to accomplish it?

  • Is the project out of the realm of the normal talents and competency of your staff?

  • Do you have an old project that no one wants to do—and probably needs a completely new look?

  • Do you have the money to spend on a project but perhaps not a full-time person?


If all or many of the answers to these questions is yes, determine what you want to outsource and describe it in writing. When you are sure of the description, pass this description of the project around to at least one person in your office and one person totally uninvolved in the project. As simple as this sounds it will probably amaze you how two other co-workers will view the project. So now - just imagine how someone totally new to your "corporate" culture will view the portrait of your project. If you take this difference and then add to it the different steps and stages to the project, well...one can only imagine how unmatched the result will be! As clearly as you understand what the end result will be you must be able to convey this to the firm and/or individual you wish to assign this project. Concise communications is tantamount to the project completed as you expected.

When you’ve completed the description – turn it into an RFP outlining all the parameters that are important to you. Some facts to assist in the development:

  1. An overall description of your company/association and what its mission is and who it serves.

  2. The description of this project and where it goes after completion. (Is it a stand alone this time or merely one part of a huge project.)

  3. Why you are outsourcing this project. (Honestly!)

  4. When do you need the response or proposal returned? (Remember to respond to your RFP there may be research hours needed on behalf of the outsourcing firm so be realistic about a return date)

  5. Reporting - how often do you want progress reports? (Remember here that you need to feel comfortable but they do need time to work on the project rather than preparing reports.)

  6. What do you want these reports to contain?

  7. Who actually makes what decisions and how are they justified? (Are you really the decision maker or the middle decision maker?)

  8. What type of decisions may be made for you by the outsourcing firm? (Extremely important to set parameters here for design, money, liability!)

  9. When is the rough draft of this project due?

  10. When is this final project due and in what form?

  11. How much is your overall budget and how do you envision it to be spent - administrative time, management time, telephones, expenses? How much is allocated to time and how much to materials?

  12. How much of this budget can be spent on other expenses without prior approval from you?


Now – if you can answer these questions you will have a grid to also allocate points and/or standards for the firms who are answering your request. And – you have a clear tool outlining expectations and needs to maintain your position of responsibility.

Finding a firm that will fit the project will not be difficult but doing a little research will greatly aid and speed up the decision process. There are firms that will make a better "fit" into the culture of your business. As an example, a meeting management firm that specializes in computer-based meetings will probably have a much different procedure and approach than either a medical-based firm or one that specializes in the non-profit sector. Finding a list of firms can be done by calling on any of our professional hospitality associations such as Meeting Professionals International or ASAE. After selecting four or five, take the time to chat for just a few moments before the RFP goes out. This can save time and make the search more targeted. And, time, to all of us is such a precious commodity!

While giving the firms a heads up that an RFP is on its way, this call is an opportunity to ask the questions that will help to qualify the firm to know that they will fit the criteria and have managed business opportunities such as the one you are offering. By eliminating firms that are not qualified you will save time for both sides of this. The firm will answer your RFP and its response should fit into the "grid" for the selection process to be done in an orderly way.

It is our philosophy that there will always be enough business to go around if we are careful to reach for business that complements our own core beliefs and competencies. During your personal meetings with the firms you can reaffirm your feeling that you are creating a partnership that will make you look great and do a fabulous job on your project. If for one second you do not feel this camaraderie – move forward to the next firm! There will be one that will make you comfortable in its ability to partner and accomplish your joint goals. Besides, for the project to be done successfully communication must have an easy consistent flow and you must feel comfortable providing all types of information to the firm.

Some other key factors that should be considered depending upon the size and ramifications of the projects that will influence its success are:

If you want a project to be finished UNDER your budget share that hope…and the budget. So often we do not want to share the actual figures hoping that miraculously the project will be accomplished under budget. Sharing the budget figures can also confirm the level of elegance or simplicity expected.

If you are outsourcing the project then let it go! If you require more updates then share that information but don’t get back into the "flow" of the project and interrupt the channels that are working! Rather than helping, you will be undermining the success of the project and this sets EVERYONE up for failure!

The larger the project the more paramount the legal issues can become. Whether you utilize your counsel or the outsourcing firms’ on large projects keep in mind outsourcing does not eliminate this need or aspect of the project.

As a final thought...outsourcing is but an avenue in skill and knowledge utilization. Experts in many fields that you could not afford nor keep busy on a full time basis come in and partner on specific projects...and this knowledge sharing is done through strategic and precise communications. If you keep an open channel of communication it will work beautifully!

Outsourcing is not an exact science but rather one that is constantly changing and evolving – and involves humans! And all of those factors keep it quite interesting! Good Luck!

©Copyright 2000. Outsources, Alexandria, Virginia, U.S.A. Reproduction permitted with credit to Outsources.

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