Many Schools Turn to Outsourcing During Recession

 Ever wonder why more schools turn to outsourcing during a recession?  Is it really just about the cost being much less to the school?  How about control?

Outsourcing immediately solves the money problem without the learning curve.

To many struggling schools, it is a “no-brainer” to cut staff who are under performing and expensive when times are tough.  Outsourcing allows them to do this without training new hires.  Many schools just want to cut some staff hours back and outsource their work for a less cost per hour without the big learning curve to get the job done.  But is there more to it than that? –YES!

Experience and proven performance is a big incentive to outsource.

It is hard to measure and control a single staff member’s knowledge and accuracy.  When a school contracts with an outsourced company, they are usually able to easily review background and obtain references as to the outsourced company’s performance and pooled experience. (And they do not need a large human resources department to do this.)  If a school does their homework, they will choose an outsourced company who is known and reputable amongst other schools and industry agencies, thus giving them a ‘leg up’. 

Loyalty is valuable and sometimes questionable with staff.

Ultimately a school immediately gains the stability of a contract with an outsourced company.  A contract provides agreed upon tasks the outsourced company must perform for the length of the contract, so they do not have to worry about the job getting done or costly turn-over and training.  They also can easily budget their costs and not have to anticipate providing increased “incentive” to staff in the form of benefits such as skyrocketing health insurance, accumulating vacation benefits, matching 401K etc.

Outsourced companies tend to produce more output-less mistakes!

Most outsourced companies have proven systems geared to handle large amounts of work and processing in an efficient or streamlined fashion.  These systems, whether human or automated, replace staff members with “bad habits’ or processing flaws that slow the process or may even jeopardize the school’s well-being.

So does the school lose or gain control when outsourcing?

Based on the above, the school gains more control when outsourcing.  Most school executives get to have direct contact with their outsourced company’s managers and supervisors just as they would their own.  Outsourced companies have a real interest in keeping the school as a satisfied client and will be sure the job it done right. Issues tend to be handled more professionally without departmental drama and gossip that can surface in some schools and ultimately the school makes the call in any changes.  Therefore, the school tends to have more control and time to deal with other areas of the school.