Introduction

This chapter examines how outsourcing has become embedded in stock management in public libraries in the UK. It considers the implications of EU procurement requirements and discusses the outsourcing of library services to companies such as Instant Library. Looking to the future, it explores how shared services can offer economic benefits to local authorities.

Outsourcing – whatever is it?

As a well trained librarian, when faced with a question, I consult a reliable reference source. So, when considering outsourcing, I started by looking up the definition in a dictionary – and then in another …

The Oxford Dictionary of English (2010) defines outsourcing as ‘obtaining goods or a service by contract from an outside supplier’.

Outsourcing is a practice which is now widespread both in private companies and in national and local government organizations. It has become attractive, the Dictionary of Economics (2009) suggests, because the products and services procured externally are often better than those provided in-house – and that they are better because of the specialist skills and expertise available from external suppliers. Outsourced products and services can also be cheaper as the outsourcing organization can benefit from economies of scale or scope – and so costs are reduced.

Outsourcing allows organizations flexibility: it is easier and faster to reduce the value of a contract than reduce the size of an in-house workforce. The Dictionary of Economics (2009) comments that it may also be easier to enforce contracts with outside suppliers than deal with a unionized internal workforce.

The Dictionary of Business and Management (2009) discusses which activities might be outsourced: activities which are regarded as non-core to the organization's activities are often the first areas to be contracted out. Functions such as finance, IT, legal and personnel services, are often the first areas to be considered. Outsourcing non-core functions enables the organization to focus more effectively on their core activities. To do what you do best and outsource the rest is a popular adage!