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"The average person who uses a public library doesn't really know or care how the books get on the shelf." ~ Bart Kane, former State Librarian, Hawaii,
Exploring Outsourcing: Case Studies of Corporate Libraries by Frank Portugal.
Outsourcing Library Technical Services: A How-to-do-it Manual for Librarians by Arnold Hirshon and Barbara Winters.
Outsourcing is having an external agency perform a function or related functions instead of doing it with in-house agency employees. The term in reference to services was coined in 1989 when Eastman Kodak outsourced its information technology unit to three outside firms. EDS and IBM have been most successful in managing all IT functions for a variety of large organizations, both private and governmental.
Obviously, there are degrees of outsourcing. The key issue here is the degree to which the agency retains the ability to make important selection decisions. Both standing order and approval processes represent outsourcing. However, in the latter case the books received are monitored and the approval profile is refined from time to time.
Libraries have outsourced some professional tasks for many years. Cataloging has been outsourced since the Library of Congress began issuing printed catalog cards. Many libraries have purchased shelf-ready books from vendors. Leased or rental books represent outsourced collection development where a profile creates a changing collection of shelf-ready books. Some new libraries have begun with "opening day" shelf-ready collections put together according to standard lists by vendors.
Many Federal government libraries have been outsourced since OMB's Circular A-76 included libraries with janitorial services, laundry, and street maintenance as outsourceable.
Custodial services, grounds maintenance, binding, photo duplication services and other services have long been outsourced by libraries.
A few academic libraries have outsourced their cataloging/classification/subject heading function. Several Federal government libraries have been outsourced so that another agency receives a contract to provide all library services (usually using the existing facility, collections, and often the existing staff).
One key assumption by boosters is that the external agency will do it cheaper and at least as good (perhaps even better).
Another booster assumption might be that communities are NOT unique so that selection by local selectors who know the local community is not required.
An assumption by critics is that the professional and paraprofessional employees employed by the vendor or contractor are not as effective as those employed within the agency, especially since they are likely to be paid less or have fewer fringe benefits.
Before outsourcing, the agency must know how much it costs to perform particular costs and how to measure success. This is absolutely essential. If this is not done well, outsourcing can be disastrous.
"Do what you do best and hire the rest" is the key concept of outsourcing since an agency should not outsource a key competency. This means that an information agency must determine which competencies are core and which are not. Core competencies
Some questions to answer when considering outsourcing
Is collection development a core competency? Some suggest that the core competency in a library is to provide information and entertainment at the library-patron interface.
Outsourcing, if all works well, should:
Outsourcing may have these problems:
An obvious concern is that outsourcing will create a "hollowed out" information agency, one that can no longer do what needs to be done or respond quickly to changing conditions.
Is proxy selection a form of outsourcing? To some degree, yes.
One could argue that standing order and approval plans represent a de facto form of outsourcing since the agency then allows others to develop the collection by deciding which items will be included.
Hawaiian public libraries (a state-wide public library system) outsourced their technical services and collection development to Baker & Taylor after the Governor threatened a substantial funding reduction which would have resulted in major layoffs and library closings. The State Librarian responded with an outsourcing proposal to reduce costs and move technical service and collection development staff into public service slots. Results seemed to be poor with many poor quality inappropriate books arriving from the vendor while appropriate titles were not received. The contract was soon canceled, and the responsible state librarian was fired. This is an unusual case of outsourcing:
While many librarians rejoiced at this failure, it seems likely that outsourcing collection development will continue to be popular with cost-sensitive administrators who like the notion of developing a profile and then having new shelf-ready material flow in automatically.
To what degree does proxy selection, the use of standing orders and approval plans represent outsourcing?
When would you be willing to outsource collection development and to what degree? You may select a particular type of information agency.
After selecting a particular type of information agency, identify and defend those activities that are truly core.
In general, to what degree does outsourcing make sense? Why?