Organizations today are looking for qualified consultants and service providers to pitch in and work on a range of projects, from technology support, to Website design/management, to customer relations management. The possibilities for outsourcing are endless. Regardless of the nature of the project, however, it is important to do your homework before "farming out" a task.

Outsourcing a service to a consultant can be a powerful tool if it works to the organization's advantage -- from both a cost and workload perspective. But outsourcing minus a defined strategy is simply wasteful, notes Susan H. Cramm, author of the Leadership Agenda column for CIO.com, who recently wrote on the topic of "Desperation Outsourcing."

In her article, Cramm stresses that under the right conditions, outsourcing saves money, reduces risks, accommodates peak loads, and develops internal staff and processes. "But these benefits," she adds, "come about only if internal staff remains in charge of the client relationships by deciding whether to 'make or buy,' selecting and managing vendors, establishing strategies and technical directions, defining standards and policies, and seeing that the vendor's knowledge is transferred internally over time."

To Outsource or Not to Outsource
So, how do you know when to outsource? There's really no one, foolproof way to answer that question. A good deal of research must be conducted and compiled before a solid decision can be made. Here are a few tips to help you get started: 

• Assemble a draft action plan outlining the project's priorities.
• Assess both the direct and human resource costs associated with the project.
• Establish a timeline for the work.
• Review the strengths and talents of your staff.
• Review your organization's current workload.

For example, if your organization is thinking about outsourcing Web design, you should first put together a list of "wants and needs" related to your site. When assessing the expected cost of the project, review past records and invoices related to similar undertakings or reach out to colleagues who have performed similar tasks. Don't rely on consultants or service providers for this information because they have a vested interest in your project, advises Cramm. Their interest is to get you to contract their services.

Next, review human resource costs: How much time would your employees need to spend on the project? Would more than one employee need to be involved? Consider also that the costs related to the time employees would need to spend on the project are affected by your organization's current workload. If employees are involved in a variety of other areas and time cannot be freed up for a new project, then it may make sense to look for outside assistance. It's also important to know where the strengths and weaknesses of your internal staff lie. For example, if no one on staff has expertise in Website design, outsourcing becomes the obvious answer.

Once you've made the decision to outsource, keep in mind that you're not off the hook. Someone has to manage the outsourced project and work alongside the consultant or service provider to ensure that the work meets your organization's goals, mission and quality standards. The consulting team or service provider should perform the bulk of the legwork, but someone from your organization needs to serve as the internal project manager to provide project input and direction as necessary.

Project outsourcing should never be a drain on your budget; rather it should help balance the workload within your organization, while providing new management responsibilities for the employees who will serve as project managers.

Effective Outsourcing
Decisions to outsource projects, especially long-term, ongoing projects, such as the outsourcing of your entire information technology (IT) department, can affect -- and change -- employees' lives. To maintain morale and the status quo, keep the lines of communication open throughout the duration of the project.

"If too many workers leave in the midst or aftermath of an outsourcing deal, the company and the outsourcer both suffer a damaging knowledge drain," notes Meridith Levinson in an article on CIO.com where she profiled Richard LeFave, Nextel CIO, about "Life After Outsourcing." To deal with this issue, LeFave provided regular communication to his staff: emails, meetings and updates. Levinson further notes that it is important to keep the doors of communication open for all employees -- from the entry-level IT support person to the senior-level directors -- to address employee concerns and fears.

Outsourcing can be a valuable tool for accomplishing business goals. It pays, however, to be clear from the start about your needs and expectations. Do your homework, provide good oversight every step of the way, and keep the lines of communication open with your employees.