According to Denise Gore, owner of OffSite Works, sending out pieces of daily operations has its advantages over hiring in-house employees. "Smart outsourcing can lower costs, improve productivity, and raise your core employees' satisfaction." Her Nashville-based company provides off-site services for clients such as Broker to Broker, Willis, and BMI. OffSite Works manages a network of experienced professionals for companies to utilize as an off-site workforce.

National Safety Alliance, based in Nashville, contracts specific functions with OffSite Works. The company, which administers workplace substance-abuse-testing programs, began their relationship by utilizing 2 remote workers for data entry. OffSite Works' personnel are given secure access to NSA's intranet to verify and update on-line data with hard copy records for various stages in the drug testing process. Since the launch in September, NSA has added 3 more OffSite Works personnel.

NSA says the arrangement has been more cost effective than bringing permanent employees on board at their location. Julie Corrigan of Corporate Operations explains, "We are simplifying and meeting the volume that we need to meet everyday. The functions served by OffSite Works are allowing our trained staff to spend time on problem-solving and trouble-shooting rather than straight data entry. Given the cost of supervision along with hiring, benefits, vacation and sick pay, space and equipment, this arrangement has made us more cost efficient and streamlined in our operations."

In addition to the savings they have experienced with this type of operational outsourcing, NSA has been impressed with the quality of OffSite Works' personnel. "The quality personnel we retain is due to a number of market trends", according to Ms. Gore. "Low unemployment is allowing job seekers to shape the market, and many are seeking non-traditional employment. These professionals are looking for remote work and flexibility which have been made possible by advances in telecommunications." These advances have resulted in an explosion of off-site contract workers.

Non-traditional workers such as temporary and outsourced contract workers account for 25 to 30% of the current workforce, according to an Olsten Workforce study. Ms. Gore says, "We see IT professionals to graphic designers to transcriptionists determined to work more independently. They want to be judged by performance rather than a timesheet. Unlike hourly billing, results-based pricing eliminates idle time and assures a company that they are getting good value. Results-based pricing also gives the worker an incentive to work quickly and efficiently."

In years past, companies turned to recruiters and HR departments to meet their needs for new talent. Most handled entire in-house departments for technical support, marketing, and payroll. Unfortunately, low unemployment is contributing to the lack of skilled workers available. Entire IT departments are being outsourced due to a severe lack of programmers and technicians. Just as unfortunate, are the rising costs and legal issues associated with hiring, retaining and training employees.

With the speed of today's technological change, training needs have increased dramatically. Most companies understand new employees rarely come to them with the skills needed. 75% of the responding organizations in the Nashville Chamber of Commerce's 1999 Workforce Study, report increasing their investment in employee training.

Increased competition, rapid technological change, a lack of quality workers, and the cost and complexity of maintaining employees have all helped propel the excitement surrounding the outsourcing concept. According to Nashville's Workforce Survey, 60% of companies use contract workers this year as opposed to 40% during last year. Contracting out in order to concentrate on core business is allowing companies to stay competitive. They are able to supplement their workforce, turn over responsibility for a specific function to another company, and access skills through an outsource partner.

In addition to alleviating hiring and training, outsourcing addresses other growing issues such as: the increased demand for real estate, the problems of urban sprawl, and the continual investment in equipment also resulting from technological change. Almost every department in a company could contain entire functions or projects to outsource.

There is a learning curve with these arrangements. Outsourcing relationships have their own particular dynamics, especially regarding remote management. But once the partnership is comfortable, the benefits far outweigh the difficulties of changing habits.