Typical Potential Outsourcing “Opportunities” for IR Managers:

  1. Sales—Brokerage
  2. Demolition
  3. Environmental—Site Assessment and Clean-up
  4. Major Projects: Development and Leadership, On-site Management, On-site Safety, On-site Admin Support
  5. Appraisals and Detailed Inventory Reports
  6. Real Estate Sales
  7. Machinery Removal
  8. Investment Recovery Support and Assistance
Recommendations and considerations from the panel included the following:

Think of outsourcing as another tool in your belt. Outsourcing makes sense when you don’t have

the internal resources or expertise to do the job. Obvious examples would be demolition and environmental remediation.
 

There may be issues and concerns to deal with such as hard feelings, job encroachment or loss of
perks at the mill level when you outsource a service, so you need to understand the issues and be
prepared to be an advocate for your service provider. With tight economic conditions, dealing with

these internal company dynamics will likely become more frequent.
 
Very often, brokers and dealers have a much larger contact base and expertise in specific commodities that you can take advantage of, thus generating higher revenue than if you handled the sale internally.
 
Manage your service provider!
Outsourcing doesn’t relieve you of the ultimate responsibility for the project. Stick with experienced, well-regarded service providers and check references. Lastly, be sure to get the service provider involved in the project development early on, and be proactive in your ongoing management of
the provider and the project. 
 
Reprinted from ASSET 2.0, the Investment Recovery Business Journal, Vol. 5, 2007

© The Investment Recovery Association