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Main Reasons for Outsourcing

The main reason that charities are considering outsourcing in the present economic environment is saving costs, but there are host of other advantages too.

Most charities can save between 30% to 70% on transaction processing costs along.

Cost savings - If services are being shared with other charities costs will be saved through the more effective use of resources. This means that more can be spent on fulfilling the aims of the charity.
Access to specialist knowledge/ skills - In a study carried out by Charity Business in 2003, this came out as the main reason charities wanted to outsource. Sometimes it is not efficient to employ a person with specialist skills if you may only need them once in a while. By outsourcing, you can access expertise as and when.
Flexibility - Charities are continuously changing in terms of size and structure. By outsourcing, volumes can fluctuate without causing the charity too much trouble.
Management Time - Is often wasted carrying out administrative activities. This could be much better spent looking at the more strategic issues and managing the charity.
Shared Risk - Charities will not be tied down to using the same resources and as technology or situations change, the charity need not invest heavily.
Improved Quality - A specialist provider is likely to be able to provide a better service than if the function was performed in house by a non-specialist.

Interested but not sure how it works click here for further information.

Or if you would like to understand how you can benefit from outsourcing go to our online outsourcing enquiry form or give us a call on 01793 554 204 to discuss how your charity can achieve these benefits.

"Age Concern Hounslow is in the first year of a contract with Charity Business – which now deals with all our financial processing needs. The transfer process gave an opportunity to benefit from the considerable experience of the Charity Business Team and to restructure financial and administrative systems.

The small staff team at Age Concern Hounslow can already see that the partnership will make their lives easier and allow them to focus on service provision.

The trustees, mindful of the imperative to limit central costs, appreciate the cost-effectiveness of outsourcing and value the high standard of management
information provided by Charity Business.”

(Age Concern Hounslow, Full Outsourcing and VFD Client since March 2008)