Six considerations before outsourcing a function
Many institutions consider the potential cost savings of outsourcing a function, but this often represents only a partial analysis. A Value for Money analysis will identify actual valuations and potential valuations.
Functions with either low-complexity (e.g., custodial services) or high-complexity (e.g., HVAC maintenance) tasks are good candidates for outsourcing because employing both require extensive personnel funding.
Institutions must evaluate the service level they require from the function, as well as how outsourcing might impact its performance.
Institutions should evaluate how frequently they anticipate functional demand (e.g., seasonal leaf blowing or snow plowing) when deciding whether to outsource it.
While all functions require HR support, certain roles, such as those with high turnover rates, demand more from human resources and are often good outsourcing candidates.
All Facilities functions contribute directly or indirectly to institutional strategic objectives. Before outsource a function, institutions should first identify the strategic goals the function impacts.
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