In business the generally accepted litmus test for deciding to handle any task or initiative in-house or to outsource it usually comes down to a simple question – Is this what we do best? Here’s how to apply this litmus test. The things that you do best should be kept in-house, everything else – outsource it. We should define “best” since it’s so subjective. In this instance, best means world-class. What that means to you is this, if your organization cannot deliver a world-class training, certification, and licensing program you should outsource it. In yesterday’s post http://www.jasztech.com/2010/11/training-certification-and-licensing-–-preparing-for-success/ we examined the considerable level of effort involved in establishing and maintaining a world-class credentialing program, so your conclusion to outsource should be a guilt-free decision. Think of it as freeing up your personnel to do what they do best.
Although the benefits to outsourcing credentialing are fairly obvious some are not so intuitive so we’ll list them for you.
Benefits of Outsourcing Credentialing
Personnel Resource Savings – Large organizations will need several staffers to manage its program. Mid-size organizations will require at least one person. Small organizations will require one full-time person for the first 90-days during program development, while maintenance will require 10 – 20 hours per week.
Advantage of Economies of Scale – By selecting a reputable and experienced firm to outsource to you can take advantage of long standing relationships with the vendors used by your training, certification, and licensing program. Often times vendors will offer better terms, conditions, and pricing to the outsourced firm because of its high-volume purchasing practices. The benefit to you is realized through lower prices and increased flexibility in how you use the goods and services offered by training and exam voucher vendors. Do you need special examination dates setup for your organization? Looking for lower rates than advertised? Would a longer exam or training voucher expiration date work great for your workforce? Often the firm that you outsource to can leverage the business that it brings to the credentialing vendors, to negotiate a better deal for you. We’ll use a case study to explore how some Department of Defense organizations have taken an innovative approach to credentialing and saved an estimated (collective) $1.75 million in start-up costs.
Reduced Start-Up and Maintenance Costs – Another huge benefit is that your credentialing program’s operating costs are distributed across all of the outsourced vendor’s clients. This allows your organization to have a customized credentialing program for a fraction of the price.
From Concept to Production at Warp Speed – Establishing a new credentialing program can take about 90-days from concept to production with ample labor hours dedicated to the activity. Outsourcing will allow you to get up and running with a tried and proven strategy in days or weeks, depending upon how much pre-work you’ve accomplished at making business decisions about your program. In a future post we’ll discuss the process of working with a credentialing vendor.
Credentialing Program Strategies and Systems – Two tasks that can really bog down improving or implementing a credentialing program are (1) developing the strategic plan and, (2) choosing a program management application or system. The primary cause is lack of experience. This isn’t something that your organization does everyday so there’s a learning curve to overcome. Researching credentialing program best practices, regulations, vendors, and implementation methodologies takes time and personnel resources. Why recreate the wheel when you can rely on the experts. We’ll explore how the experts will work with your organization to develop, implement, and even maintain your credentialing strategy. As I said in the previous post, organizations often use Microsoft Access or Excel to track and manage its credentialing program. Later they realize that a web-enabled system is really the ideal solution. Some credentialing program vendors like ours, here at JASZ offer a hosted solution, an enterprise solution, and a corporate solution. In a future post we’ll examine each of these options so join me for the next round of this credentialing program discussion.
44 Comments
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