The Pros and Cons of Library Outsourcing:
A Planning Aid for Librarians and Administrators
Researched and Compiled by Karen Wells, EdM, MSLIS
When organizations consider outsourcing library activities, it is important that the
program is carefully and strategically planned. Outsourcing without thorough pre-
planning may cause considerable difficulty and expense in the future. The table below
examines activities that may be outsourced, and shows potential outcomes of three
scenarios: on site employees, contractors on site, and contractors off site. It will assist the
librarian and administrator as a tool to initiate discussion prior to the hiring of library
consultants. This document addresses global issues regarding library services consulting
rather than the outsourcing of specific functions within library organizations.
Activity Staff On Site are Staff are Staff are
Employees Contractors On Contractors Off
Site Site
Cost saving Minimal- status quo. Benefits reduced or Benefits reduced or
eliminated; budgets eliminated; budgets
negotiated and negotiated and
contingent upon contingent upon
services purchased services purchased
from contractor, from contractor,
generally cost generally cost
saving. saving.
Buying Expertise Staff can directly Limited, if Limited, if
complete purchases stipulated by stipulated by
and share in contract; otherwise, contract; otherwise,
consortia under contractor’s under contractor’s
memberships and control. control.
reduce costs
significantly
Productivity Employee work Employee work Employee work
amount reflective of amount reflective of amount reflective of
commitment to the commitment to the commitment to the
organization and contractor contractor
clientele it serves
Control over library High. Can alter or Low, limited only to Low, limited only to
budget add or subtract at what contract had what contract had
any time. detailed. May have detailed. May have
to re-do sections of to re-do sections of
it, with more cost, it, with more cost,
when it needs to be when it needs to be
altered altered
unpredictably after unpredictably after
the contract is the contract is
implemented. implemented.
Concentration on Broad direction Broad direction only Broad direction only
Core Services given to local staff can be given. At can be given. At
that will consider mercy of contractor mercy of contractor
historical needs of to determine what is to determine what is
the library’s best to keep and best to keep and
collection as well as discard, since local discard, since local
its future need. Can expertise is non expertise is non
reduce or add to existent. existent. Contractor
core collection at must also hire or
administrator’s bring someone on
discretion. site to perform
collection
evaluation and
subsequent
collection
development and
maintenance.
Administrator NA Low unless Low unless
Control over vendor stipulated in pre- stipulated in pre-
planning in contract planning in contract
Staff Reduction At administrator’s Only upon Only upon
discretion renegotiation. renegotiation.
Problem employees Terminate via local Terminated through Employee not on
HR contractual change site and only
and only upon terminated through
renegotiation contractual change
and only upon
renegotiation
Strategic High, can do all Low, can give broad Low, can give broad
capabilities planning personally directions only. Not directions only. Not
for library to fit in able to share able to share
with company’s internal, company internal information
strategic plan for sensitive with outsiders.
education, keeping information with Contractors have
current, etc. outsiders. own strategic plan
Contractors have separate from
own strategic plan community’s and
separate from the company’s plan.
community’s and Strategic planning
company’s plan. occurs between
Strategic planning contractor and
occurs between company, only if
contractor and concerted effort is
company, only if made.
concerted effort is
made.
Intellectual capital Intellectual Vendor has control Vendor has control
property, records, over intellectual over intellectual
technological property; records property; records
materials (hardware, and some and some
software, etc.) hardware/software hardware/software
owned outright by or other material or other material
corporation to add, may be owned by may be owned by
subtract, store, and them and can not be them and can not be
modify, at will. altered nor used altered nor used
without approval of without approval of
contractor. May contractor. May
lead to dependence lead to dependence
on contractor if on contractor if
contractor holds contractor holds
information in information in
closed environment. closed environment.
Specific stipulations Specific stipulations
must be made in must be made in
contract in the contract in the
preplanning stage, if preplanning stage, if
significantly significantly
different. different.
Institutional High. People have Low. People are Low. People are not
memory longevity in the job, new to the in the community at
know the company, community and do all. People are not
community. A sense not know what has knowledgeable
of continuity and or has not been done about the
connectedness before, who the community, its
exists. people are, what the people, the
corporate stances corporate stance,
are, and feel and are
disconnected and disconnected and
viewed as outsiders. viewed as outsiders.
Staff morale High. People feel Lower. People feel Lowest. People feel
secure in their jobs, the most loyalty to the most loyalty to
know their clientele, the contractor, may the contractor; do
and know the or may not know not know their
community. People their clientele or the clientele or the
get and give community, and community. People
efficient services may or may not give get efficient services
and personal personal attention to and “business
attention to known clientele. courtesy,” rather
clientele on a than “personal
personal level. courtesy.”
Loyalty to customer High. People are Loyalty to Loyalty to
involved in their contractor and some contractor, and
company, their contact with local minimal contact
community, and the community. More with local
people in the distant relationship. community. Cordial
community are Not seen as an but often not
personally known insider to company personal. Not seen
by them. but as an outsider. as an insider to
company/communit
y but as an outsider.
Unexpected costs Can be dealt with May cause May cause
and complications locally in a more additional costs, additional costs,
rapid and efficient personnel conflicts, personnel conflicts,
manner. if not carefully if not carefully
planned for and planned for and
included in contract. included in contract.
Will take time to Will take time to
actually address due actually address due
to possible need to to possible need to
alter logistics of alter logistics of
contract. contract.
Technology Can be adapted or Can only be Can only be
modified at will, in modified if modified if
conjunction with contractor agrees; contractor agrees;
local IT department. may be lack of may be lack of
compatibility compatibility
between contractor between contractor
and on site and on site
technologies that technologies that
must be remedied must be remedied
(staff, money, (staff, money,
purchases of purchases of
proprietary proprietary
software.) Requires software.) Requires
close close
communication communication
between between
contractor’s IT staff contractor’s IT staff
and your company’s and your company’s
IT staff. IT staff.
Time to tailor Easier to maneuver Harder to maneuver Very hard to
services to needs of because services are because customers maneuver because
local customers local are not as well local politics and
known. social strata, other
peculiar corporate
nuances are
unknown.
Expertise Employees are hired Employees are hired Employees are hired
by local HR and by contractor and fit by contractor and fit
must meet their criteria for their criteria for
company’s criteria hiring hiring
for hiring. Can be
assessed at local
level
Daily Operations Reported, Must be reported to Operations all
administered, regularly to local internalized and
changed, maintained administrator. internal problems
locally and directly. Changes must be not shared with
constantly administrators.
renegotiated and Changes must be
problems reported constantly
usually with second renegotiated and
and third problems reported
negotiators. usually with second
and third
negotiators.
Personnel Staff Done locally and Done through Done through
Evaluations given directly to contractor and not contractor and not
administrator shared with shared with
administrator administrator
Program Overall Done locally and Done through Done through
Evaluation given directly to contractor and contractor and
administrator shared with shared with
administrator, any administrator, any
changes may be changes may be
renegotiated into renegotiated into
contract contract
Meetings/Negotiatio Can be done locally, Can be done locally, Contractor travels in
ns with minimal contractor needs to negotiate, needs
advance planning advance planning. highest level of
Employees of advanced planning.
contractor must
travel to meet with
parent contractor.
Paperwork Done locally and Done by contractor Done by contractor
submitted directly. and submitted and submitted
directly to directly to
contractor oversite, contractor oversite,
who reviews it and who reviews it and
then submits it to then submits it to
administrator. administrator.
Telephone contact Generally done Generally done Done long distance;
and email locally locally and over email
When your decision to outsource has been confirmed, you will need to initiate three
stages to provide the most benefit of outsourcing to your company. They are:
• Planning- In this stage processes and routines are examined and quantified, and the
costing out of internal workflow and operations occurs. In addition, the selection of a
s”
vendor and the “how-to' of contractual negotiation occur in this stage.
• Implementing- Restructuring and reorganizing workflow occurs in this stage, along
with the introduction of new processes and routines, and the development of new
policies. Then, you learn how to use new systems and further assimilate your work
with that of the vendor.
• Managing- This stage involves quality management and problem resolution. Specific
quality indicators should be developed so that quality can objectively be assessed. To
thoroughly address this stage, there necessitates a project manager and a library
administrator.
For further information about the “How-To’s” of the stages above, review the reference
section provided at the end of this document.
References
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Dobb, Linda S. Bringing it all back home: insourcing what you do well. The Bottom
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