Outsourcing Services a Growing Trend

November 2018

Outsourcing can be an effective way to control costs while maintaining quality and service.  When outsourcing, services are obtained from an outside supplier in place of hiring employees.

Condo corporations may take this approach to hire a superintendent, cleaning staff and others on a temporary or as-needed basis.  They may team up with another condo corporation to share a single superintendent or maintenance-type professional.  Roles suited for outsourcing tend to be those required on a regular basis but not necessary in a full-time capacity.

Outsourcing has negative connotations when it comes to jobs that used to reside in Canada but are now being done outside the country.  Outsourcing works differently when applied to condo corporations.

Some condo corporations do not require a full-time superintendent, cleaner, landscaper or handyman.  Employing someone full-time in a role with too much downtime creates financial and operational challenges.  It can result in insufficient funds for employing others for needed work.  Outsourcing allows condo corporations to save on hours not utilized in one role and direct funds to other improvements.  When properly managed, the end result is savings in time and money without reductions in service or maintenance.

Outsourcing may work best in condo corporations with fewer than 50 units.  Larger buildings likely require the services of a full-time individual in most roles to adequately maintain the facility.

Larger and smaller condo corporations can benefit from outsourcing for back-up help when replacing cleaning staff or a superintendent who may be sick or on vacation.

Employing staff for specific purposes can lead to inefficiencies.  A superintendent with downtime may not be comfortable cleaning floors or a cleaner may not be suited to handling trash and dumpsters.  This can result in too many staff being employed or necessary work not being done.  Rather than spending $140,000 paying three people, it can be smarter to pay a company $100,000 to handle everything.

Some condo corporations may find it makes sense to turn certain full-time positions into part-time positions.  Others may only have a temporary need for certain roles.  Outsourcing through a separate company allows this to occur quickly and seamlessly.  It places responsibility for staffing, legal compliance and payroll with the employing agency and limits internal overhead.

Outsourcing is not an effective replacement for contractors with specialized skills needed on a periodic basis.