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Why outsourcing is key to maintaining excellence while cutting costs

Faced with rising operational costs, many associations have discovered that outsourcing certain functions to specialised agencies reduces overheads, enhances efficiency, fosters innovation and allows in-house teams to focus on their core mission. 

At the end of 2024, a survey of top executives across regions and industries found that cost management emerged as their top priority. We have found the same to be true for directors of associations. 

The pressure to maintain high-quality member experiences and services while managing administrative, marketing and event costs has led many associations to rethink their strategies. More associations are exploring ways to streamline operations, reduce overheads and improve efficiency without sacrificing quality of the services they offer their members. Outsourcing and streamlining processes are emerging as key solutions, enabling associations to more efficiently focus on their core missions while leveraging external expertise for other functions. 

As Dennis Larsen, Board member of the European Association of Communication Directors (EACD) says, “Given the difficulty to secure enough high level, consistent operational support through volunteers, the only way we can serve our members and meet our association’s objectives is through strong hands-on, back-office service providers. Having professional operational and member service support from our valued service provider has made a massive difference to our success.” 

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Streamlining operations 

Adopting lean management principles, automating repetitive tasks and eliminating redundant processes, can reduce the workload on internal teams and allocate resources more effectively. Many associations are leveraging AI-driven tools to automate membership renewals, personalise communications and manage data analytics in-house. This allows them to consolidate certain roles, streamline meetings and implement cross-functional teams, improving internal efficiency. 

Often an outside partner can see more clearly where these optimisations can happen, especially a partner with solid experience in association management. 

The case for outsourcing in associations 

Outsourcing is another way to successfully achieve operational efficiency. In How outsourcing evolved in 2024 and what to expect in 2025, SIA (a global research and advisory firm focused on staffing solutions) noted that in 2024 the demand for highly skilled professionals “exploded and outsourcing became a common practice”. Organisations “shifted from using outsourcing just for back-end functions to using outsourcing for more specialized positions”. SIA also noted the rise in 2024 of nearshore outsourcing – the delegation of specific business processes to companies or individuals in a neighbouring country – and that this trend would continue in 2025.  

Researchers in the association space have noted that 45% of associations say they have too few employees but are hesitant to bring on more staff. This suggests that outsourcing has or will become an essential solution – after all, managing an association involves a broad range of functions, from membership services and event planning to lobbying and communications. Maintaining an in-house team for all these functions can be resource-intensive and financially unsustainable. 

Outsourcing provides flexibility, scalability and access to the latest technological advancements. Associations often delegate tasks such as member communications, marketing, event logistics, data analysis and financial management to external providers who bring industry knowledge and best practices to the table. This not only reduces operational bottlenecks but also enhances service quality by enabling associations to channel their internal resources toward value-driven activities. 

Another consideration is compliance – with regulations changing and technology evolving so rapidly, expert external service providers can offer confidence that industry standards will be met, reducing the burden on in-house teams. This is particularly relevant for associations managing large-scale conferences or handling complex data sets, where external expertise can significantly improve both efficiency and accuracy. Similarly, a partner with expertise in digital transformation can assist with the implementation of automated workflows, CRM systems and AI-driven analytics that can help associations personalise member experiences, optimise resource allocation, minimise errors and enhance the overall member experience. (In the survey mentioned above, 86% of executives surveyed said they planned to invest in AI and advanced analytics in 2025, but many associations lack the internal expertise to deploy these technologies effectively.) 

Outsourcing allows associations to remain agile. Instead of being burdened with fixed costs, they can scale services up or down based on member needs and industry shifts. This flexibility is particularly valuable during periods of economic uncertainty, when associations must be prepared to pivot in response to market dynamics. 

Read: 15 factors to consider before your association decides to outsource.

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Reducing operational overheads 

One of the primary concerns with rising operational costs is the potential impact on member services. With increasing competition, associations need to strike a balance between cutting costs and maintaining the quality that members expect. Here again, strategic outsourcing plays a crucial role. 

Cost reductions can be achieved by outsourcing non-core functions, such as day-to-day operations, marketing and data collection and analysis, to specialised providers who can perform these tasks more efficiently. This eliminates the need for full-time in-house teams, leading to significant savings in salaries, benefits and infrastructure. 

In addition, outsourcing partners bring advanced technologies and automation tools that drive further efficiencies. For example, AI-driven data analytics can help associations personalise member experiences, while automated workflows can streamline administrative processes. By leveraging these innovations, associations can enhance service delivery while managing financial constraints. 

When considering outsourcing, take the time to research successful cases in management, marketing and communications, technology, events, and beyond. I’ve provided a few links here to assist this process. Too often, outsourcing is seen purely as a cost centre when, in reality, the right partner can drive revenue, enhance efficiency and improve quality. Technology – particularly AI and automation – can be a pivotal factor in shifting this perception, delivering direct benefits for service quality and business administration. Embracing outsourcing strategically can help associations focus on what they do best while strengthening their operations.   
 

To partner with MCI, contact us today. 

Jeroen van Liempd - Director Associations & Communities, MCI Brussels

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