Industry Partner Perspective
Outsourcing - The New Business Solution

According to the Outsourcing Institute, global outsourcing will exceed $120 billion by the end of the year. In the meetings industry, outsourcing for non-core services has grown tremendously especially in the wake of 9/11 and the softening economy. Corporate officers and executives face enormous challenges in today's competitive marketplace and the decision to outsource has taken on new and weightier proportions.

Typically, the decision to outsource is driven by both strategic and financial forces. Strategically, many organizations have recog-nized that:

• Critical resources are not available internally
• The needs of their membership or clientele are better served by focusing their staff on core services
• Outsourcing allows them to improve their organizational focus

Financially, organizations have identified the need to:

• Free resources for other more profitable purposes
• Reduce operating costs
• Drive additional incremental revenues

If your organization is currently considering the utilization of an outside supplier, there are several key factors to consider in selecting a vendor/partner.

1. What is the reputation of the vendor that you are considering?
2. You should ask for, and carefully research, their references.
3. Make sure to interview key staff members who will potentially handle your account to see if they fit personally and ethically.
4. Make sure to investigate the longevity of the firm in question. Your goal should be to establish a long-term partner for the future.

The decision to outsource non-core services can be one of the most profitable and powerful decisions an association or corporation can make. Typically, organizations that outsource experience an aver-age increase of 15% in productivity and quality, and an overall cost savings of at least 9%. Experience also shows once staff time is more focused and allocated to core serv-ices, that both the organization and individuals prosper.

David Peckinpaugh is Executive Vice President of Sales & Marketing for Conferon Inc., the nation's largest meeting management firm.