Outsourcing

Dave Blankenhorn

Dave Blankenhorn

Outsourcing some of your operational functions can be a good way to save staff time, reduce costs, and gain added expertise. This is particularly true in areas such as I.T., marketing and human resources. Outside firms can free you up from mundane tasks so that you can focus on your client’s needs.

However you need to be careful in the selection of an outside provider knowing that they will have access to your confidential information. If you are considering outsourcing or are already doing so you should develop a policy to measure vendor security and stability. This is an important process given the expense and reliance given them.

The policy criteria should include;

– Financial condition. Obtain last three years FYE statements hopefully audited by an outside party.

– Management qualifications and continuity- be comfortable with the expertise and stability of the key people.

– Internal security- see how they manage the security of the information given them. Ask for internal audit results and their Privacy Policy.

– Search legal records – Find out if they are any ongoing suits and if so what they are about.

– Check references carefully- Find out if what they were promised is in fact being delivered. Ask if the quality and quantity objectives are being met.

Finding the right outside firm can be a great boon to your nonprofit. The selection of the right one is an important decision which needs to be made only after understanding that they can provide what you need and will be there in the long run.

Author:  Dave Blankenhorn, Executive Coaches of Orange County, www.ECofOC.org