Library Outsourcing: A Crisis for Managers

A Definition:

Outsourcing: transfer of a function or job formerly done inside an organization to an outside contractor/vendor

The question of which function/job for an organization to outsource depends on what are the core activities of the organization.

Outsourced Library Functions

INDEXING BOOK-KEEPING IMAGING CATALOGING BOOK PURCHASING PAYROLL COMPUTER AND TECHNOLOGY MANAGEMENT BINDING DATABASE ACCESS LIBRARY MOVE SECURITY DATA RECOVERY LOOSE LEAF FILING JANITORIAL DEACIDIFICATION PHOTOCOPYING DOCUMENT DELIVERY WEB DESIGN/HOSTING SPINE LABELS DAYCARE SERVICES MICROFILMING NETWORK MANAGEMENT RETROSPECTIVE CONVERSION TRANSLATION

THE ENTIRE LIBRARY

Privatization

Outsourcing in libraries is occurring parallel to other areas:

IT Industry Military/War- Iraq War Prisons Natural resources: water

Two Notorious Examples

1996: RIVERSIDE COUNTY PUBLIC LIBRARY-SOUTHERN CALIFORNIA

1997: BART KANE AND THE STATE OF HAWAII

The county outsourced the entire library including management to LSSI

Board retained policy control

One librarian retained as advisor in pay of the county

Facing drastic budget cuts, state librarian Bart Kane outsourced collection development to Baker & Taylor

Problems escalated with this policy

The contract was ended and Bart Kane was sacked

ALA Taskforce on Outsourcing: 2000

The ALA asserted that good library work is connected to the local community

Good library work cannot be reduced to a commodity

Effects of Outsourcing

PRO CON

Bottom line-save $ Efficiency Economies of scale Focus on core

activities Career growth area

for librarians working for private contractors?

Hidden costs and extra work

Technology gaps Can hurt staff morale The efficiency is

often about the appearance of efficiency

The main problem is a clash of values

CORPORATE MANAGEMENT IDEAS

LIBRARIANSHIP

Efficiency Cost savings/Profits An approach based on

profit motive and efficiency will inevitably undermine library service for the worse

Management ideas like systems thinking can actually support complete outsourcing and privatization

Libraries are market failures

Ideals like open access, freedom of information, lifelong learning etc. cannot be measured by standards of efficiency and profit

Fundamental library values aim at bolstering democracy over a long period of time

The Manager's Crisis

Many management techniques come from the corporate world.

A library manager is in a bind between librarianship and corporate management.

The lack of recognition/value about librarians and their work makes libraries and librarians vulnerable to outsourcing.

The question of outsourcing is not a question of if but when, how, and to what extent.

Managers may at some point have to choose allegiance to which set of values they support.

The New Social Contract

Privatization and outsourcing have eroded job security and stability

In the past, loyalty and hard work translated as job security-this is no longer true. The property right in job positions is weakening.

Huge rise in number of temp, part time and contract workers

Employees must be more loyal towards themselves and their careers than the organization

It is now more urgent for librarians to demonstrate their value and the importance of their work

Managers can face challenges managing personnel under the new contract because of loss of morale and different conceptions of loyalty

The Future?Many libraries will probably move towards privatization.

The ideas of efficiency and outsourcing are very seductive to officials and many managers