Outsourcing

Citation

Maxymuk, J. (2000), "Outsourcing", The Bottom Line, Vol. 13 No. 3. https://doi.org/10.1108/bl.2000.17013cag.001

Outsourcing

Keywords Outsourcing, Cost benefit analysis, Vendors, Companies, Libraries

The word "outsourcing" often inspires a visceral reaction, especially from those whose jobs have been "outsourced." However, outsourcing is a management approach to business that has been successfully applied in many fields, including all types of libraries. Among the advantages to outsourcing often cited are that it allows an organization to focus on what it does best, to utilize the skills of specialists and to reduce operating costs. Disadvantages can include a decrease in local quality control, morale problems with personnel because of job losses and ineffectiveness of the approach because of poor management planning or implementation. There is a wealth of information on the Web, and here are some of the best sites.

Clearinghouses

A good place to start is with an all-encompassing clearinghouse site. There are two major ones for the outsourcing industry, and while they have little information directly concerning libraries, they are good places to learn about the field of outsourcing in general. The first is the Outsourcing Center (http://www.outsourcing-center.com/) which prominently features an online monthly journal called Outsourcing Journal. It also has a seemingly endless number of pages on all aspects of the topic. There is an outsourcing FAQ, an outsourcing glossary, and lists of upcoming events, annual awards, and relevant books. Sections are devoted to outsourcing in different geographic regions, concerning different functions such as human resources and information technology, and from different perspectives (academic, legal, business, and so forth.) There is even a piece on Arnold Hirshon's book Outsourcing Library Technical Services: A How-to-do-It Manual for Librarians (Neal-Schuman, 1996).

A second clearinghouse site is that of the Outsourcing Institute (http://www.outsourcing.com/home.htm) The Institute is a professional association which strives to provide timely information and services on outsourcing. On its site is basic information on how and why to outsource, a calendar of upcoming events, and a host of topical articles. The Institute's annual assessment of outsourcing activity in the USA is also featured, but surprisingly the data are four years old.

Company listings

Libraries use outsourcing to complete a wide range of functions: cataloging, archiving, records management, indexing, abstracting, filing, shelving, training, database searching, database administration, and Web design and maintenance. Consultants are also hired for large one-time projects like automation, relocation, or renovation. As with most decisions of this kind, going on a personal recommendation from a known source is usually the best way to find a reputable company. Barring that, there are a few notably incomplete listings on the Web from which to get started.

Yahoo is always a directory option. Its category of library service companies (http://dir.yahoo.com/Business_and_Economy/Companies/Information/Library_Services/) does list a number of major players in this field. Other Yahoo choices of some interest include Information Consultants (http://dir.yahoo.com/Business_and_Economy/Companies/Information/Consultants/) and Information Brokers (http://dir.yahoo.com/Business_and_Economy/Companies/Information/Information_Brokers/). Bowker, the library publisher, has a Library Resource Guide on its site (http://www.bowker.com/lrg/home/) that is a searchable directory of library services and suppliers. There are entries under both "Consulting" and "Outsourcing." Another resource is the Librarian's Job Search Source (http://www.lisjobs.com/) that is managed by Rachel Singer Gordon. The site attempts to be a comprehensive guide to library employment-related online resources. As such, a listing of temp and employment agencies is provided. Although it is intended more for librarians looking for temporary work rather than libraries looking for outsourcing companies, the list can be useful as a place to start.

One library outsourcing company not listed on any of the above sites is AccuFile, Inc. (http://www.accufile.com/). I include it here not as a recommendation, but because in its sales pitch on its Web site, it dispenses the following sensible guidelines in choosing the right library outsourcing company:

1. 1.

   look for a well established track record with similar clients;

2. 2.

   make sure the company has trained expertise to address your needs;

3. 3.

   ask for a cost analysis up front to assess the savings to you;

4. 4.

   determine how flexible the service schedule is for you;

5. 5.

   choose a company that has access to online services and new technologies to apply to your future growth.

These are all excellent considerations to keep in mind when investigating outsourcing for your institution.

Official viewpoints

The American Library Association (ALA) appointed an Outsourcing Task Force in 1998. Minutes of their first meeting were posted on the Net (http://www.acsu.buffalo.edu/~ulcjh/alatf.html) and they review the group's charge and some basic definitions of terms. The Outsourcing Task Force pages on the official ALA site (http://www.ala.org/outsources/index.html) delineate questions raised by members of the Task Force, outline a basic background document on the subject, review ALA policies and position statements as they relate to outsourcing, and contain a selected bibliography. Last year, ALA's Association for Library Collections and Technical Services (ALCTS) documented its efforts by publishing a book of outsourcing case studies Outsourcing Library Technical Services Operations: Practices in Academic, Public, and Special Libraries (edited by Wilson and Colver). The Special Libraries Association (SLA) had published Exploring Outsourcing: Case Studies of Corporate Libraries by consultant Frank Portugal in 1997. An executive summary of this volume is on the SLA site (http://www.sla.org/research/outsource.html) Both printed works examine the reality and myth surrounding the practice of outsourcing, pro and con.

Another thing to consider for public institutions is whether there are overriding legal or regulatory restrictions to employing private companies to perform the duties of government entities. In its section on Public Contract Law, the American Bar Association (ABA) has a Committee on Privatization and Outsourcing. The Committee's Web site (http://www.abanet.org/contract/federal/privateout/) features a virtual library where a user can find US statutes on privatization and outsourcing, as well as relevant federal regulations, government-wide rules and policies, Congressional testimony, and General Accounting Office and court decisions.

Much of this is overly technical and legalistic, but some material considers factors that certain libraries must address.

Finding out more

Both the Outsourcing Institute and the Outsourcing Center are noted above for the great abundance of articles of interest accessible from their sites. Most of the articles, though, are either of a more general or business perspective and might not have as much direct appeal to librarians researching a real world situation in their institution. There are online articles that do relate directly to our field, however. An article from 1997 called "The ins and outs of outsourcing: the changing, evolving scene for information professionals", by Sandy Schwalb, gives an excellent overview of the topic for libraries and librarians and is archived at the site for the journal in which it was originally published, Database (http://www.onlineinc.com/database/JunDB97/schwalb6.html).

Another example is archived on the Law Library Resource Xchange site (http://www.llrx.com/features/pms.htm). This piece, "Outsourcing a private law library: in defense of the Pillsbury, Madison & Sutro decision," reports on a very controversial decision in 1999 by the PMS law firm in San Francisco to outsource its entire library operation. The article was written by Janice Hammond who was the library manager at PMS at the time, and it outlines the issues, options, and outcome of this case.

As always, a good way to stay informed is by monitoring applicable newsgroups or subscribing to like listservs. Library-Oriented Lists and Electronic Serials (http://www.wrlc.org/liblists//liblists.htm) is a good place to check to see what groups and lists are available besides the most obvious Libadmin for library administration issues and ALCTS's Network News for technical service discussion. A useful service called Library Juice (http://libr.org/Juice/) is provided by Rory Litwin from the MLIS program at San Jose State. Litwin pulls messages from approximately three dozen listservs and some other sources. What makes it especially interesting is the unique selection of lists to which Litwin subscribes. Among them are EQUILIBR (ethnic interest in libraries), IFACTION (censorship), ALAWORLD (international concerns), PUBLIB (public libraries), PLGNET-L (Progressive Librarians Guild), FEMINIST, Conservativelib, and CDT Policy Post (Center for Democracy and Technology). When outsourcing is discussed here, it is most likely the political ramifications that are at issue.

Finally, there are many bibliographies to both print and online outsourcing resources available as well. The Internet Library for Librarians provides a bibliography of Library Outsourcing Articles compiled by Robert Renaud and Marian Dworaczek (http://www.itcompany.com/inforetriever/adm_outs.htm). SLA presents its bibliography Selected References on Outsourcing Library Services (http://www.sla.org/membership/irc/contract.html) on its site. On one page, ALA of course offers the bibliography compiled by its Outsourcing Task Force noted above (http://www.ala.org/outsource/bibliography.html). Even more extensive on another ALA page is Library Technical Services Outsourcing: A Select Bibliography assembled by the ALCTS's Commercial Technical Service Committee (http://www.ala.org/alcts/now/outsourcingl.html).

Outsourcing has been with us in varying guises such as "privatization" and "contracting out" for many years now. The trend will evolve, but it will not disappear. It is best for librarians to stay informed via the Web for such resources.

Comments on this column are welcome and can be sent to maxymuk@crab.rutgers.edu Or visit my Web page (http://www.rci.rutgers.edu/~maxymuk/home/home.html). Links to Web sites referred to in this column can be found there.

John MaxymukReference Librarian at the Paul Robeson Library, Rutgers University in Camden, New Jersey